Regulation
Will Former President Donald Trump Be Crypto’s Knight in Shining Armor Against Biden’s Policies?
As the 2024 US presidential election approaches, the crypto community finds itself at a crossroads, and with the recent turmoil in the cryptocurrency market, the stakes are higher than ever. Many enthusiasts believe that only Donald Trump can save the future of digital currencies from Joe Biden’s restrictive policies.
Regulatory pressure from Biden
President Joe Biden’s administration has not been very supportive of the cryptocurrency industry. From the IRS rule that treats crypto wallet developers as broker-dealers to increased scrutiny from agencies like the SEC (Securities and Exchange Commission), with many cryptocurrency businesses feeling the pressure, the stance of the Biden administration has been clear and unwavering.
Gary Gensler, the chairman of the SEC, has been particularly aggressive, labeling many tokens as securities, which subjects them to strict regulations.
This has led to a significant decline in market sentiment, with Bitcoin’s market capitalization falling from $1.2 trillion in 2021 to around $500 billion in 2023. This regulatory pressure has led some companies to consider relocating overseas to avoid strict US regulations.
Biden’s Treasury Department has also issued warnings about the potential risks of cryptocurrencies, including concerns about their environmental impact, including Bitcoin mining. For some, this reinforces the perception of Biden as “anti-crypto.”
Founder of decentralized cryptocurrency exchange Uniswap, Hayden Adams, shared his views on the Biden administration’s cryptocurrency regulations in an X tweet, saying, “Republicans smell blood in the water and are moving hard on crypto.”
Hillary is campaigning in red states instead of miscalculating in swing states by the Biden camp, thinking crypto will be irrelevant in the 2024 election and leaving SEC + Warren to wage an all-out war – both in terms of voters and money.
The Republicans smell blood in the water and are…
– hayden.eth 🦄 (@haydenzadams) May 13, 2024
Trump’s pro-crypto stance
In stark contrast, Donald Trump’s views on cryptocurrency have changed dramatically. At the beginning skepticaleven critical, Trump now recognizes the potential economic benefits of a thriving crypto market. His previous administration took a relatively hands-off approach, allowing innovation to flourish. Trump recently hinted at favorable policies this could support the industry, such as tax incentives for crypto startups and a more lenient regulatory framework.
Interestingly, supporters of former President Donald Trump point to Trump’s appointment of pro-crypto figures like Hester Peirce, also known as “Crypto Mom,” to the Securities and Exchange Commission (SEC) as evidence of his support for the industry.
Despite this, some crypto proponents remain skeptical, wondering whether Trump will follow through on his promises. However, as the saying goes, “actions speak louder than words,” Trump’s history with crypto has been more positive than that of his incumbent rival.
Feelings
In a move that many in the crypto community see as a slap in the face, the Biden campaign explores accepting crypto donations. The move, seen by some as an example of boldness, comes in response to political winds showing that crypto impacts both presidential and parliamentary elections.
So the Biden administration and the SEC spend years trying to crush crypto and even sue Coinbase… But now they’re scrambling to set up crypto donations through Coinbase?
Wow, they really think Americans are stupid. pic.twitter.com/PTdSs2OFu1
– Dan Gambardello (@cryptorecruitr) June 13, 2024
Conversely, Trump has criticized Biden’s cryptocurrency policy and vowed to end what he calls Biden’s “war on crypto” if he returns to office. At an event celebrating his 78th birthday at Club 47 in West Palm Beach, Florida, Trump stressed the need for the United States to become a leader in the cryptocurrency sector.
Economic impact
The numbers don’t lie. Since Biden’s presidency, Bitcoin’s market capitalization has seen significant volatility, going from an all-time high of $1.2 trillion in November 2021 to fluctuating around $500 billion. This led to massive losses for investors and hindered the growth of new blockchain projects. Conversely, during Trump’s term, the crypto market grew exponentially, driven by a more laissez-faire regulatory approach.
As the election approaches, the stakes have never been higher for the crypto community. The future of the crypto market is at stake, and Trump’s potential return to the White House could herald a new era of prosperity for digital currencies. At the same time, a new term under Biden could tighten the regulatory noose even further, stifling innovation even further, or maybe not. But we’ll see.