Key Takeaways
- US voters consider that the financial system needs to promote emerging technologies.
- Cryptocurrency is now a prominent issue on the agendas of both Democratic and Republican campaigns.
- With her deep-rooted connections to Big Tech, Kamala Harris is exploring the crypto industry.
- After initially dismissing Bitcoin as a scam, Donald Trump has vocally stated his support for the sector.
Developments in U.S. politics are poised to impact the crypto industry significantly. As the election nears, anticipation grows with a new key figure emerging. Sunday, July 21, marked a historic shift in the US. political arena. President Joe Biden announced his decision to withdraw from the presidential race, endorsing Vice President Kamala Harris as the Democratic successor.
This significant political move triggered a notable response from the financial sector, particularly within the cryptocurrency industry, where Bitcoin (BTC) prices surged above $68,000, and Kamala Harris’ associated memecoin, KAMA, saw a dramatic increase in value.
As the 2024 presidential election draws near, US voters show increased interest in the cryptocurrency market. The race between Harris and Trump is anticipated to be tightly contested. According to a recent poll by Reuters and Ipsos on July 20, Harris leads Trump with 44% to his 42% in the U.S. presidential race.
The crypto industry must now evaluate Kamala Harris’ stance and compare it to that of Donald Trump, the Republican candidate.
This article will examine the stances of major US presidential candidates on crypto, providing a comprehensive comparison to aid voters in understanding where each stands.
Biden’s Administration On Crypto
During President Biden’s administration, there were efforts to enforce stricter regulations and tax policies on the cryptocurrency sector.
The US Securities and Exchange Commission (SEC) proposed regulatory oversight for crypto platforms and enhanced security measures for digital asset custody. The Treasury suggested taxing cryptocurrency transactions as capital gains, while the White House pushed for a 30% tax on crypto mining to address environmental concerns and fund renewable energy projects.
In March 2022, President Biden issued Executive Order 14067, prioritizing the research and development of potential designs and deployment strategies for a US Central Bank Digital Currency (CBDC). However, in May 2024, the House passed a bill stipulating that the Federal Reserve cannot issue a CBDC without explicit authorization from Congress. Notably, Bahamas, Jamaica, and Nigeria are already using CBDCs.
Kamala Harris’ Stance On Crypto
The administration of President Joe Biden has seen prominent figures advocating for increased scrutiny and stricter regulation of the crypto industry, targeting major exchanges and expressing concerns about fraud and value stability. But, Vice President Kamala Harris is yet to define her position.
Harris has deep-rooted connections with the tech industry. Born in California, she studied at the University of California Hastings in San Francisco and served as a senator for the state before becoming Vice President.
Despite her proximity to a central tech hub, she still needs to define her stance on the cryptocurrency sector clearly. However, as the industry gains prominence, she may revisit her position.
Championed By Tech Giants
Harris has received substantial support from leading figures in the technology sector, which has solidified her reputation as a pro-business politician. This includes significant backing from tech giants and a familial connection — her brother-in-law, Tony West, who is Uber’s Chief Legal Officer.
Among her supporters is former Meta COO Sheryl Sandberg, who praised Harris on social media, stating: “She already made history once — becoming the first Black and South Asian woman to hold her office, and she will do it again in November.”
On social media, some users call Harris: “a Big Tech supporter who could scramble the Democrats’ stance on crypto.”
Contrasting Positions
Harris’s support from tech industry leaders contrasts with some of her views on the tech industry and the support of other prominent California leaders like Speaker of the House Rep. Nancy Pelosi, who has strongly advocated for regulatory measures in the crypto industry over the past year.
Despite her close ties to Silicon Valley, Kamala Harris has expressed concerns about big tech, especially regarding user data and privacy. This contradicts some of her other views, like her support for not banning platforms like TikTok.
According to a 2023 White House financial disclosure , Harris does not own any cryptocurrency herself.
Call For Certainty
Kamala’s stance toward the crypto industry and its regulation remains uncertain. Whether she chooses to embrace or distance herself from it could significantly impact the election results.
In light of this, the Digital Chamber has taken the opportunity to send Kamala Harris a letter inviting her to adopt a positive approach to crypto ahead of the election. The letter cites her ‘proven track record of engaging with digital asset technology and proposing pro-innovation policies.’
The digital chamber requested Harris to consider a suitable candidate with experience in digital assets. The decision on who the Democratic Vice-Presidential candidate will be is still pending, which might also drastically shape the government’s policy direction regarding the crypto industry.
A few days after Biden’s withdrawal, Harris began making significant strides in the crypto industry. Michael Novogratz, CEO of Galaxy Investment Partners, confirmed his support for Harris.
Reports indicated that she had been in touch with the CEO of the Bitcoin Conference 2024. However, it was later reported that she would not attend the event.
The question remains open, given Kamala’s close connections to the tech sector. Her election could potentially halt the policies against crypto.
Donald Trump’s Stance On Crypto
Donald Trump was generally known for his skepticism toward cryptocurrencies. In 2021, his reluctance was evident, as he called Bitcoin a ‘scam against the dollar’ that needs to be ‘very highly regulated.’
It seems that Trump has ignored the controversies around FTX and its founder, Sam Bankman-Fried, who gave $235,000 to Republican candidates, and he has changed his stance. During his campaign, Donald Trump promised to enable cryptocurrency donations for his followers.
In recent months, the Republican candidate has expressed a deregulatory position towards the crypto industry and shared his optimistic views on Bitcoin.
Trump has met tech industry leaders who have expressed their support for the Republican party and Trump’s economic policies. For example, the event hosted by David Sacks at his mansion in Silicon Valley raised $12 million for Donald Trump.
Trump has also been vocal about his support for Bitcoin and has called himself the “crypto president,” pledging to protect “the nation’s 50 million crypto holders” in the US from “Elizabeth Warren and her goons.” He has met with crypto miners and will speak at the Bitcoin Conference 2024, in Nashville.
The former president has previously launched trading card-themed NFTs and has announced his intention to release a new NFT collection, emphasizing his active role in the crypto sphere.
Trump has also highlighted the importance for the US to become a leader in the crypto landscape. He stated recently:
“If we don’t do it, China is going to pick it up, and China’s going to have it – or somebody else, but most likely China. China’s very much into it. We have a good foundation.”
The GOP’s statement on July 8, 2024, clearly outlines its stance on cryptocurrency. It declares that: “Republicans will end Democrats’ unlawful and unspecified policies. We will defend the right to mine Bitcoin and ensure every American has the right to self-custody their Digital Assets and transact free from government surveillance and control.”
The Grand Old Party’s (GOP) policy document suggests a comprehensive approach to integrating cryptocurrencies into its broader economic policies, potentially impacting future legislation and regulatory strategies.
In addition, Trump has also opposed the creation of a CBDC by the US government, favoring decentralized cryptocurrencies like Bitcoin.
Trump’s Nominated Vice-Presidential Candidate
Trump nominated Yale Law graduate and former venture capitalist JD Vance as the Republican vice-presidential candidate. Vance, who has between $136,000 and $390,000 invested in cryptocurrencies, has sparked optimism among conservative investors about more favorable tech regulations.
Comparative Analysis: Trump Va. Harris
This section compares and contrasts the candidates’ stances on crucial cryptocurrency issues such as regulation, taxation, and innovation and considers the implications for different stakeholders in the crypto ecosystem, including investors, businesses, and developers.
Regulation
- Kamala Harris: Vice President Harris’s approach to cryptocurrency regulation remains unclear but potentially focused on safeguards. While not stated yet, if she followed Biden’s approach, her policies could emphasize a robust regulatory framework, aiming to ensure market integrity, consumer protection, and security for digital assets. Having clear ties with tech giants, she seems to value both innovation and safety.
- Donald Trump: Trump has vocally opposed extensive cryptocurrency market regulation, aiming to reduce government oversight. While promoting economic freedom, this pivot might neglect consumer protection and market stability aspects. Trump has also expressed a specific opposition to creating an American CBDC, aligning with a general preference for less government involvement in the crypto sector.
Taxation
- Kamala Harris: Assuming Harris’s alignment with the current administration’s policies, she might support the ongoing initiatives to integrate crypto more thoroughly into the existing financial and tax systems. Her approach would likely strive for a balance between supporting the tech sector and maintaining equitable fiscal policies.
- Donald Trump: Trump’s administration would likely advocate for lower taxation on crypto mining and transactions to promote growth and attract more investment. Trump’s approach could boost immediate market activity but overlook broader fiscal responsibilities.
Innovation
- Kamala Harris: With her roots in California’s tech hub, Harris understands the importance of innovation. Her policy direction likely supports sustainable and secure technological advances, fostering a climate where new ideas can thrive within clear regulatory frameworks that protect user data and privacy.
- Donald Trump: Trump has supported crypto sector innovation by endorsing the industry’s growth. Trump’s endorsement of unregulated innovation prioritizes rapid industry expansion but may sacrifice the necessary oversight that ensures long-term sector health and consumer safety.
Implications For Stakeholders
- Businesses: Businesses in the crypto industry anticipate more structured oversight under Harris, which could lead to greater stability and credibility in the sector. Trump’s policies could reduce regulatory hurdles by focusing on operational freedom.
- Investors and traders: Harris’s alignment with Biden’s tax strategies could mean higher taxes on crypto gains, affecting investor returns. Trump’s lighter tax approach could enhance investor profits by reducing tax liabilities.
- Developers: A Harris-led administration might maintain cautious support for new technologies, balancing innovation with regulation. Trump’s push for deregulation could open more opportunities for developers to innovate freely, though this might come with increased market volatility and privacy and security risks.
| Category | Kamala Harris | Donald Trump |
|---|---|---|
| General stance | An uncertain, potentially balanced approach focusing on regulation and innovation. | Initially skeptical, recently shifted to a more deregulatory and supportive stance towards cryptocurrencies. |
| Regulation | Likely to follow Biden’s approach with stricter regulation focusing on market integrity and consumer protection. | Opposes extensive regulation, aiming to reduce government oversight and promote economic freedom. |
| Taxation | Might support integrating crypto into financial and tax systems, potentially leading to more structured tax policies. | Advocates for lower taxation on crypto to stimulate growth and investment. |
| Innovation | Emphasizes a balance between innovation and regulation, supporting secure technological advances. | Supports unregulated innovation which could lead to rapid sector expansion. |
| Support from tech | Strong connections with Big Tech, indicating possible support for tech and innovation. | Engaged with tech leaders and stakeholders in the crypto community, advocating for industry growth. |
| Events & actions | Plans to attend the Bitcoin conference, showing active engagement with the crypto community. | Has shown significant engagement with the crypto industry, meeting with key figures, and attending industry events. |
| Impact on voters | Her tech ties and regulatory approach could attract voters interested in balanced innovation and consumer protection. | His deregulatory and pro-innovation stance could appeal to voters seeking less government interference in crypto. |
How Important Is Crypto For Americans?
According to Grayscale’s 2024 report, 65% of voters agree that the current financial system is outdated and needs to be updated with new rules that consider and promote emerging technologies.
Grayscale has pointed out that nearly one-third of American voters are now paying closer attention to Bitcoin than in previous elections.
Furthermore, Bitcoin’s current price surpasses its levels in past electoral cycles, and 47% of voters anticipate having cryptocurrency in their investment portfolios. All these elements emphasize the growing relevance of crypto in the US economy and political landscape.
Favorable Policies: Divided Landscape
Grayscale indicates that American voters are divided on which political party offers the most supportive policies and regulations for cryptocurrency: 30% believe that the Democratic Party has the most favorable policies, and another 30% feel that the Republican Party offers the best support.
Deciding whether to continue with Gary Gensler as the SEC’s Chair will be a critical decision for the future president. Appointed by President Joe Biden, Gensler’s term is scheduled to run until 2026.
As SEC Chair, he plays a pivotal role in shaping the regulatory landscape for cryptocurrencies. His approach to regulation in the crypto space is crucial and could significantly influence policy decisions within the future administration. Whether or not he remains in his position could depend on various factors, including political shifts and administration priorities.
Conclusion
Former President Trump has a clear stance, actively voicing his support for cryptocurrencies. Vice President Kamala Harris, on the other hand, has yet to specify her position, leading to speculation about whether she will continue President Biden’s cautious approach or chart a new course toward the crypto industry.
US voters are increasingly aware of the need to update the financial system and are paying close attention to the crypto industry, which reflects broader trends in digital transformation and technological integration into the economy.
Both candidates have shown a clear interest in the crypto industry during their campaigns, a shift not seen previously. This marks a positive development for crypto enthusiasts, signaling the industry’s growing influence and robustness.
Disclaimer
This article is intended for educational purposes only. CCN and its affiliates do not endorse any political candidate. All facts reported are sourced from third-party websites.
FAQs
How do the presidential candidates view the role of the SEC in crypto regulation?
Typically, Democratic candidates might support a more robust regulatory role for the SEC, while Republican candidates often emphasize greater economic freedom and less regulation.
What stance do the US presidential candidates take on central bank digital currencies (CBDCs)?
In March 2022, President Biden signaled support for researching and developing a US CBDC. Yet, by May 2024, the House had passed legislation demanding explicit Congressional approval before any CBDC could be issued. Kamala Harris’s stance on this matter is still undefined.
Which US presidential candidate is more likely to create a favorable environment for crypto businesses?
Donald Trump has stated that he ‘will never allow’ an American CBDC or digital dollar.
