“Donald Trump is the only saviour of crypto.” That’s what the presidential candidate of the Republican Party was trying to portray in his recent Bitcoin Conference speech. While Kamala Harris and the Democrats do not hold strong and consistent views on crypto development, they are losing support from crypto enthusiasts.
Highlights:
- Donald Trump claims to make the United States the crypto capital of the planet.
- He also proposed creating a national Bitcoin “stockpile” as a permanent asset and terminating the existing SEC Chair on his first day as president.
- Kamala Harris’s stance on the crypto industry is uncertain but is expected to be clarified in the coming weeks.
Trump Is Going to Make U.S. the Bitcoin Leader
Republican presidential nominee Donald Trump was invited to speak at the Bitcoin Conference in Nashville last week. The speech, which was originally scheduled for about half an hour, ended up lasting about 45 minutes. When he took the stage, he was welcomed with warm applause.
During the speech, he highly affirmed the future of Bitcoin and cryptocurrency and vowed to make the U.S. a global leader in Bitcoin and digital currencies if elected:
“I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world, and we’ll get it done. If crypto is going to define the future, I want it to be mined, minted, and made in the USA.”
He also criticized the Biden and Harris administration’s stance on crypto:
“Our opponents have taken a difficult route, sticking to old-fashioned methods. We’re going to take it right down the middle …… They are blocking your path.”
“Firing” Gary Glensler, Creating a Bitcoin Stockpile
But empty slogans are not enough. When he mentioned specific policies, one point won him enthusiastic applause from the entire audience.
“On day one, I will fire Gary Gensler, and I will appoint a new SEC chairman who believes America should build the future, not block the future, which is what they’re doing. And Kamala Harris wants to make him Treasury Secretary; that’s not good.”
SEC Chair Gary Gensler has taken several actions perceived as unfriendly by the crypto community, like ramping up enforcement against cryptocurrency companies, classifying cryptocurrencies as securities, and rejecting Bitcoin ETF applications.
These measures, aimed at addressing concerns about market manipulation and fraud, have created uncertainty and concern within the industry, with some viewing them as burdensome and stifling innovation.
That is where Trump meets the community’s need to find a new SEC Chair, someone more crypto-friendly.
Also, Trump proposed creating a national Bitcoin “stockpile” as a permanent asset. This aligns Trump with other pro-crypto figures and highlights a growing political focus on cryptocurrency.
After the speech, Bitcoin’s price dropped at first but soon regained momentum with a 4% increase on July 27, heading to $70,000 with the highest price of $69,908 in the following few days.
So how about Trump’s rival?
Biden Administration on Crypto
The Biden administration has taken several actions that are perceived as unfavorable to the cryptocurrency industry. These actions span regulatory measures, enforcement actions, and public statements.
First of all: the appointment of Gary Gensler as SEC Chair, which was seen as a signal of increased regulatory scrutiny. Under Gensler, the SEC has taken a more aggressive stance on cryptocurrency regulation, emphasizing the need to protect investors and ensure compliance with existing securities laws.
On November 1, 2021, the administration released a report outlining recommendations for regulating stablecoins, emphasising the need for legislation to address risks related to financial stability, consumer protection, and illicit finance. The report called for stablecoin issuers to be subject to bank-like regulations, also known as central bank digital currency (CBDC) later.
The Biden administration is perceived as unfavorable to the cryptocurrency industry. (source: X)
Four days after the report, President Biden signed the Infrastructure Investment and Jobs Act into law. It includes provisions requiring cryptocurrency brokers to report transactions to the IRS. This move aims to improve tax compliance and reduce tax evasion in the crypto market. However, the broad definition of “broker” raised concerns within the industry about its potential impact on developers and miners.
In March 2022, President Biden signed an executive order directing federal agencies to coordinate on developing a comprehensive framework for the regulation of digital assets. The order emphasized consumer protection, financial stability, and combating illicit finance, signaling a holistic approach to crypto regulation.
In fact, not only Biden but key figures like Treasury Secretary Janet Yellen have issued public warnings about the risks associated with cryptocurrencies. Although they are doing something beneficial for the general public, these statements have influenced market perceptions and contributed to volatility in the crypto market, which has upset crypto enthusiasts.
Harris Will Not Be the Same as Biden, or Not?
Having said that, it is still hard to tell exactly where Kamala Harris, the U.S. Vice President and the Democratic presidential nominee, stands on cryptocurrency. Although she was reported to decline an invitation to attend the Nashville Bitcoin Conference, anonymous sources close to her suggested that it was because “Harris doesn’t have much time to redefine herself.” How closely Harris plans to align herself with Biden on the matter remains unclear.
The stance to which Kamala Harris belongs on crypto remains unclear. (source: X)
Within the Democratic Party, the crypto market has seen support from influential Democrats like Ritchie Torres and Ro Khanna, but also opposition from others like Elizabeth Warren.
Recently, Harris’s aides have reportedly engaged with industry officials to “reset” relations, but it is unclear what has been discussed. The crypto industry seeks clearer regulations tailored to digital tokens rather than the stringent rules applied to Wall Street.
Harris’s history as a prosecutor and the Biden administration’s tough stance on crypto regulation make her support for the industry uncertain. However, the industry’s financial power remains a significant factor in politics. Harris’s outreach to the crypto industry may be more about minimizing opposition rather than securing votes.
Time is tick tocking. It is reasonable to assume that Harris will clarify her stance on cryptocurrencies in the coming weeks.
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