Perspectives

Since the release of Satoshi Nakamoto’s Bitcoin whitepaper in 2008, the crypto world has had to juggle its idealistic roots with the realities of Capitol Hill.

Today, America maintains a regulatory environment that does not do enough to mitigate highly volatile crypto trends and shady activities involving digital assets. But this Wild West market may soon see significant changes following the U.S. presidential election next month.

Crypto companies are betting big this election cycle. The industry has contributed over $119 million to 2024 federal elections, placing second in federal elections spending after the fossil fuel industry. This brazen push to elevate crypto as an important voter issue is necessary if the market wants more government support.

At the same time, candidates need to capture the hearts of voters. A survey by global market research firm The Harris Poll found nearly 33% of surveyed voters would factor a presidential candidate’s position on digital currencies into their voting decision, while 77% of voters want a candidate that is informed on digital assets and other emerging technologies. This growing pressure is working as both presidential camps are now speaking on the topic of digital assets. But is it all just political theater or can we expect some meaningful change in digital assets’ future?

Kamala Harris

Vice President Kamala Harris is fighting an uphill battle to rebuild the democrats’ relationships with digital asset leaders and many single-issue crypto voters.

Over the years, the Biden administration has made few friends within the crypto community. From vetoing a bill that would have allowed highly regulated financial firms to manage crypto assets, to imposing a 30% electricity tax on all crypto mining, the Democratic Party has historically shown a reluctance to support pro-crypto policies. Now, Harris must navigate through Biden’s shadow over the digital assets landscape with open-minded policies and the courage to challenge the Democratic status quo.

Last month, Harris vowed to help expand investments in digital assets and create a stable business environment with clear regulations, marking her first comments on crypto since the start of her 2024 campaign. Additionally, Harris’s Opportunity Economy strategy proposes several pathways to reinvigorate the middle class through solutions that could leverage the power of digital assets. Without a track record on the issue and the unlikely chance that Harris will unveil a fleshed out digital assets strategy before November, it’s unclear how Harris would empower, or undermine, crypto’s future. But her recent actions show some promise.

Donald Trump

Former President Donald Trump has completely rebranded himself as a pro-digital assets candidate after denouncing these technologies in the past.

Trump made headlines this year by speaking at a major Bitcoin event, releasing digital NFT trading cards, accepting Bitcoin campaign donations, and launching a new crypto exchange called World Liberty Financial. He even proposed a set of crypto-friendly initiatives, including the creation of a government stockpile of Bitcoin, assembling a crypto advisory council, and blocking the Federal Reserve from creating its own digital currency. It appears that Trump welcomes more favorable regulation and more opportunities for the crypto market. Compared to Harris, he has signaled far more support for digital assets in the U.S., which resonates with his audience and is paying off for his campaign. Only time will tell if his policy priorities remain the same if he returns to the White House.

Post November Election

Some crypto insiders are less concerned about the elections and believe the industry will naturally progress no matter what party is in power. But with so much money within the crypto and digital assets markets at stake, it would be foolish to write off the implications that such a contentious election could have on the future of digital assets.

Let’s face it—politics matter in the modern world and it’s crucial for innovative companies to stay informed on all things that matter most. Trilligent’s intrigue and experience in blockchain and digital assets keeps our global team of expert practitioners confident and engaged in these spaces. From policy research, to communications and scenario planning, to stakeholder engagement and so much more, Trilligent can help your business navigate the policy implications of the November election.