US Elections And Crypto: Industry Insiders Predict Potential Market Impact

As the US presidential election approaches, less than two months before what could be a turning point for the crypto industry, experts are expressing skepticism about its potential impact on the crypto market, according to a CNBC report. 

Crypto Leaders At TOKEN2049 Downplay US Election Impact

Speaking at TOKEN2049 in Singapore, prominent figures in the industry shared their insights, suggesting that the global landscape may overshadow domestic political changes.

Charles Hoskinson, founder of the Cardano blockchain, remarked that regardless of whether the US is pro-crypto or not, the world is moving on, reflect a growing consensus that the momentum for digital assets and blockchain technology is driven by international developments, rather than solely US regulatory frameworks. 

Hoskinson pointed out that countries around the world, including Singapore and members of the European Union, are actively rolling out regulatory frameworks that support the growth of decentralized technologies.

Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, echoed Hoskinson’s sentiments, emphasizing that Bitcoin’s journey from its inception to its current value occurred without clear regulations or widespread government acceptance. “I don’t think it really matters,” Hayes said. “Why do we need it now? It’s irrelevant.” 

Per the report, while some insiders acknowledge that former President Donald Trump is viewed as more crypto-friendly compared to Vice President Kamala Harris, they maintain that the overall impact of the election on the crypto landscape will be minimal. 

Trump’s recent keynote address at the Bitcoin Conference in Nashville, where he pledged to protect federal Bitcoin holdings and promote the US as a “crypto capital,” underscores his appeal to the crypto community. 

However, Hoskinson cautioned against overemphasizing the significance of any single political figure, noting that the global shift towards decentralization is already underway.

Is Bipartisan Support In US Congress The Key?

Anthony Scaramucci, founder of SkyBridge Capital, offered a different perspective, suggesting that Harris’s approach to crypto regulation may align closely with Trump’s. He expressed optimism regarding her potential policies, indicating that the election could bring clarity to the regulatory environment.

Jeremy Allaire, CEO of Circle, the stablecoin company behind the USDC token, countered the notion that cryptocurrency regulation will become a partisan issue in the upcoming election cycle. 

Allaire pointed out that bipartisan support in Congress is fostering an environment conducive to technological advancement. “No matter who wins the White House, Congress itself is set to act,” Allaire stated, emphasizing the need for the US to remain competitive in the global tech landscape.

Despite the prevailing sentiment that the election will have a limited impact on crypto markets, significant financial contributions from the crypto sector to various candidates and political action committees (PACs) have been reported. 

Over $190 million has been funneled to candidates ahead of the election, with a noticeable balance between party contributions, although Republican candidates have received more support this cycle.

Overall, while the US election is generating a lot of anticipation, cryptocurrency insiders largely agree that the market’s trajectory will be driven by broader global trends rather than political outcomes in the coming months. 

But it’s clear that a different approach to the industry during the Biden administration would have resulted in better policies that could have spurred growth while cracking down on illegal activity. This is seen as a potential electoral cost to the Democratic Party by billionaire Mark Cuban.

Featured image from DALL-E, chart from TradingView.com