From border security and inflation to reproductive rights and climate change, there are many controversial issues that will shape the 2024 presidential election. But one issue that hasn’t made it to the forefront of candidates’ platforms is quietly influencing a certain demographic of voters: crypto investors.
According to the Federal Reserve, only 7% of Americans invest in cryptocurrency. However, the pace of digital asset adoption continues to accelerate, and the respective policy positions of former President Donald Trump and current Vice President Kamala Harris regarding decentralized finance (DeFi) and potential regulation could have a huge impact on how the average crypto investor votes in elections. Day.
It is not only voters who are interested in the outcome of the elections. Corporations are leading efforts to influence federal cryptocurrency policy. In late August, a report from the progressive nonprofit Public Citizen found that donations to Big Crypto totaled $119 million, representing 44% of all corporate money contributed during this year’s election cycle. Crypto corporations were the main corporate political investors in 2024.
Ahead of November 5th, we’ll take a closer look at Trump and Harris’ positions on cryptocurrencies.
Trump’s Pivot in Cryptocurrency
In 2021, Trump called Bitcoin a “scam” and said the digital asset was a “disaster waiting to happen.” Fast forward to 2024 and his sentiments have changed. Bitcoin’s market capitalization currently stands at an astounding $1.355 trillion, and the former president has become an ardent supporter of the cryptocurrency.
On October 16, CNBC reported that since the beginning of June, a political action committee called the Trump 47 Committee has collected about $7.5 million in cryptocurrency donations, including Bitcoin, Ether, XRP and USDC, according to Federal Election Commission data.
The increase in cryptocurrency donations comes after Trump’s growing public support for the DeFi community and the recent launch of his World Liberty Financial token. According to the token’s official website, it aims to bring about a “financial revolution by dismantling the stranglehold of traditional financial institutions.” But its initial implementation limited access to accredited investors (i.e. high net worth individuals or professional investors).
According to Martin Leinweber, chartered financial analyst and director of research and digital asset strategy at MarketVector Indexes, while the move went against one of the fundamental appeals of digital assets – their accessibility to a wide audience – it was driven by ongoing regulatory requirements rather than a deliberate exclusion.
According to Leinweber, who explained every aspect of Money in detail, Trump is trying to address the broader crypto landscape with a multifaceted approach:
- Bitcoin mining support: He expressed strong support for Bitcoin mining, likening it to a domestic production function. Trump has met with miners and received donations from them, signaling a commitment to policies that could boost U.S. mining.
- Banking rules: Trump has promised to end initiatives such as Operation Chokepoint 2.0, which could remove barriers for cryptocurrency businesses to access banking services. He supports allowing national banks to use blockchain technologies, which would potentially encourage greater integration between traditional financial institutions and the crypto industry.
- Countering Central Bank Digital Currencies (CBDCs): He spoke out against the development of CBDC in the United States, joining those members of the crypto community who prefer decentralized digital currencies over state-owned ones.
- Self-Care Rights: Trump expressed support for the rights of individuals to take custody of their digital assets, emphasizing the importance of personal control without dependence on third parties.
These concepts are outlined briefly in the former president’s official 2024 program, although details are scant.
In addition to promoting digital currencies, Trump himself owns a significant amount of cryptocurrency. As of October 15, his publicly disclosed wallet was valued at over $6.7 million, with significant holdings in Ethereum and wrapped Ethereum, according to financial news portal FXEmpire.
Harris Is Quietly Courting Cryptocurrency
While Harris has not been as vocal about her position on cryptocurrency as Trump, she has touted a system for regulating cryptocurrencies. However, details of the vice president’s plan are scant.
The word “regulation” is often criticized in the DeFi community, but Leinweber argues that this could be a positive development—and a way for Harris to differentiate herself from the Biden administration’s stance on cryptocurrencies.
“By regulating rather than advocating prohibition, she signals an openness to the integration of cryptocurrencies into the mainstream financial system,” Leinweber says. “This approach can be seen as an improvement over the position of the current administration, which some consider less accommodating to the crypto industry.”
Research from financial services company Morningstar found that while the demographics of crypto investors are diverse, the highest concentration of holders are among young people of color, which may also contribute to the way Harris approaches her messaging. According to Leinweber, the vice president’s recent statements linked cryptocurrency to her “Black Male Opportunity Agenda,” promising protections for owners and investors in digital assets.
However, skepticism remains. Leinweber says that “some critics see this approach as vague and are unsure how it will translate into concrete policies that promote innovation in the crypto sector.”
However, this did not stop some of the most influential people in the crypto community from supporting the vice president. For example, Ripple co-founder Chris Larsen has donated more than $11.8 million to Harris’ campaign, which could signal a broader turnaround in the crypto lobby.
“The cryptocurrency industry’s significant contributions…represent a marked increase in the sector’s political participation,” says Leinweber, adding that these donations are “likely driven by the industry’s growing recognition of the importance of political advocacy in shaping a favorable regulatory environment.” “
Leinweber expects this trend to accelerate as cryptocurrency adoption continues to push digital assets into the mainstream.
“It’s reasonable to expect that the crypto lobby will continue to have a strong presence in future elections,” he says. “This trend suggests a strategic effort by the cryptocurrency industry to engage more deeply in the political process, indicating that such participation is likely to continue and potentially grow in subsequent election cycles.”
Which candidate is better for cryptocurrency?
Trump, who changed his position on cryptocurrencies to gain community support, has made his position clear to the public through his proposed policy. Harris has recently voiced her support for cryptocurrency but has offered few details, suggesting her main interest is in providing a regulatory framework to protect investors.
On October 14, Galaxy Digital Holdings’ head of research Alex Thorne shared a scorecard on X that compares the crypto policies and legislation of Biden, Harris, and Trump. The results suggest Trump would be more favorable to the industry, but Galaxy is more optimistic about Harris’ position than Biden’s.
More money:
Is Online Sports Betting the New Stock Market?
Best crypto wallets
These Stock Market Statistics Predicted 83% of Presidential Elections in the Last Century