How the U.S. Election Could Shape the Future of Cryptocurrency

How the U.S. Election Could Shape the Future of Cryptocurrency

By Jakub Lazurek

05 Nov 2024 (2 hours ago)

2 min read

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The U.S. election may shape the future of cryptocurrency, as candidates’ policies could influence regulation and the market’s direction.

Cryptocurrency could influence the U.S. presidential election for the first time as more Americans become crypto investors. With anywhere between 7% and 21% of Americans holding digital assets—an estimated 18 to 50 million people—crypto investors are emerging as a powerful voting group. A study shows that 73% of these voters say candidates' stances on crypto will affect their decisions at the polls.

Crypto voters' potential impact is particularly strong in battleground states. For example, Arizona and Georgia have three times as many crypto advocates as the number of votes that separated the candidates in 2020. Groups like Stand with Crypto, a pro-crypto Political Action Committee (PAC), are rallying voters in these key areas. As Patrick Gerhart of Telcoin notes, digital assets are "here and not going away," and political leaders need to understand this community’s concerns.

To back pro-crypto candidates, industry-supported PACs like FairShake, which has received over $200 million in contributions from digital asset players like Coinbase and Ripple (XRP), are actively campaigning. With the upcoming administration likely to have a decisive role in shaping regulations, the industry is investing heavily to ensure a friendly regulatory environment.

In response, presidential candidates are taking note. Donald Trump, previously a critic of crypto, now positions himself as a pro-crypto candidate, even proposing a bitcoin (BTC) reserve and regulatory easing. Trump recently headlined a major bitcoin conference, though some crypto advocates question if he will follow through on these promises. Meanwhile, the Biden-Harris administration has generally taken a stricter stance, with regulatory actions and vetoed bipartisan crypto legislation creating an uncertain environment. Advocates argue this has stifled innovation and driven some crypto companies to relocate outside the U.S.

Vice President Kamala Harris has engaged with crypto industry leaders but has not yet announced specific policies. This has left some in the crypto community unsure of what her administration would mean for the sector if she were to take the helm.

Currently, polls indicate a 61.6% lead for Donald Trump over Kamala Harris at 38.4%, reflecting Trump's appeal among crypto supporters who see him as a potentially more favorable candidate for the industry. While neither candidate may fully align with the crypto community’s vision, many see Trump as a hopeful ally over the current administration. As Todd Ruoff of Autonomys points out, candidates’ positions could shape both the future of crypto and their own political success.

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