- As the United States moves closer to the presidential elections, the crypto industry is increasingly coming into focus, with analysts from the research and brokerage firm Bernstein examining how candidates’ positions might impact the market.
- Last weekend at the Bitcoin 2024 conference in Nashville, ex-President Donald Trump outlined six major promises to benefit the crypto industry if re-elected.
- Analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia from Bernstein shared these promises with their clients.
Explore the potential impact of the U.S. presidential elections on the crypto industry, with detailed insights from key industry analysts.
Trump’s Promises and Their Potential Impact
The speech delivered by former President Trump at the Bitcoin 2024 conference outlined six substantial commitments to the crypto industry if he is re-elected. These include making the U.S. a world leader in Bitcoin and cryptocurrencies, transforming the country into a “Bitcoin mining superpower” by increasing electrical capacity for the sector, and replacing SEC Chairman Gary Gensler with a crypto-friendly head.
Additional promises involved refraining from creating a central bank digital currency (CBDC), ensuring the right to personal wallets and uncensored crypto transactions, promoting the digital dollar for global cross-border payments through a stablecoin framework, and maintaining a national strategic Bitcoin stockpile by utilizing confiscated assets.
Wyoming Senator’s Legislative Push
Following Trump’s address, Wyoming Senator Cynthia Lummis announced her intent to introduce a bill that would require the U.S. Treasury to acquire one million Bitcoins over the next five years, roughly an equivalent of $69 billion at current prices. This proposal, if enacted, could establish a precedent, encouraging other nations to adopt Bitcoin as a reserve asset.
Vance Spencer, co-founder of Framework Ventures, emphasized the importance of such a strategic reserve. “If Trump secures another term and partially implements these policies, it could trigger a new competitive era in cryptocurrency adoption among countries and financial institutions,” he said.
Kamala Harris’s Outreach Efforts
Although Vice President Kamala Harris did not speak at the event, sources indicated that she may offer conciliatory overtures to the crypto industry. Reportedly, her team has recently engaged with representatives from major crypto firms like Coinbase, Circle, and Ripple. This comes amid calls from Democratic circles for candidates to apologize for previous regulatory actions against the industry.
The Fairshake crypto super PAC, backed by figures from Coinbase, Ripple, and a16z crypto, has amassed $200 million, the largest for this election cycle. Analysts from Bernstein opined that while Harris’s efforts are a positive step, the industry may require more concrete actions to rebuild trust with the Democratic Party.
Conclusion
The crypto market’s trajectory seems closely linked to the U.S. presidential elections. Trump’s clear support for the industry could result in substantial benefits for Bitcoin and related equities, whereas the uncertainty surrounding the Democratic stance leaves some questions unanswered. As we approach the elections, stakeholders remain watchful of how these political developments will shape the future landscape of the crypto world.
