Trump or Harris win effect on crypto industry

The U.S. election in 2024 is anticipated to influence the cryptocurrency market through several mechanisms, reflecting the candidates’ stances on cryptocurrency regulation, economic policies, and the broader financial system.

Donald Trump has expressed support for deregulation, which many in the crypto community interpret as potentially favorable for cryptocurrency growth. His vision of making the U.S. a “bitcoin superpower” and reducing regulatory hurdles might lead to an environment where crypto innovations flourish, possibly boosting investor confidence and market growth in the short term.

Kamala Harris signals a more positive stance towards technology and might continue or refine the regulatory framework established under the Biden administration. This could mean more structured regulations aimed at consumer protection and financial stability, which might initially be perceived as restrictive but could lead to long-term stability and acceptance of cryptocurrencies in mainstream finance.

Some experts shared their thoughts in an exclusive interview;

James Davies, CEO of Crypto Valley Exchange cvex.xyz

The market doesn’t appear to be pricing a lot in, unlike the rest of the commentators, I don’t feel that the market is overly US-centric in most of its pricing activity.

The immediate effect on crypto legislation, international relations, and global stability. Markets usually rally after the removal of political uncertainty regardless of the direction, certain plans can be engaged, and I can expect a positive spin from major projects and companies regardless of the outcome. The American crypto industry needs to become less partisan and ensure success for future cycles.

Eneko Knörr, CEO and cofounder of Stabolut

The current U.S. administration has maintained a strict stance toward the crypto industry, characterized by a slow and cautious regulatory approach, often perceived as “regulation by enforcement,” or what, Nic Carter, has referred to as “Operation Chokepoint 2.0.” This approach indicates an understanding within public institutions and government bodies of the disruptive potential of crypto innovation, which presents both a challenge to the status quo and a new frontier for economic growth. However, fostering innovation within U.S. borders, rather than pushing it to more permissive jurisdictions, should be a priority for any administration looking to retain leadership in technological advancement.
As for market expectations, many anticipate a significant uptick in Bitcoin prices if a pro-crypto administration were to take office, with a potential “sell the news” effect if Trump wins. Conversely, a Kamala Harris victory might signal continued regulatory scrutiny, potentially leading to price volatility or declines in the BTC market.

Anastasija Plotnikova, CEO of Fideum

In my view, the U.S. election presents the following landscape for the crypto industry: While crypto is just one component of the legislative agenda for both parties and candidates, there is notable attention on broader economic issues. We may see a shift towards a more structured, nuanced approach to digital asset regulation, ideally moving away from a model of enforcement-led oversight. The U.S. crypto industry supports candidates with pro-crypto stances, reflecting a significant shift in public perception towards innovation and competitiveness.