Cryptocurrency is still an emerging technology, and the U.S. government tends to struggle with understanding, let alone regulating, any kind of new industry. However, there is no getting around the importance that government policies play in the field of cryptocurrency. Even though blockchains are designed to be decentralized and free from any kind of government control, there are indirect ways that nations can impact them through their policies. Some countries choose to embrace cryptocurrency, making it easy to access and use it, even investing in cryptocurrencies themselves. While other countries may take a more antagonistic stance.
In many ways, the U.S. is being left behind when it comes to cryptocurrency. The government has largely dragged its feet on issues of regulatory clarity, and while the U.S. has seized a lot of Bitcoin and other cryptocurrency through law enforcement, it has not made moves like some other countries to hold cryptocurrency for its own financial use. However, the 2024 election is right around the corner, and who wins the U.S. presidency could have a big impact on the future of cryptocurrency. Cryptocurrency enthusiasts are also doing their part to make it a focus of the election, which means that elections all down the ticket could be determined largely by cryptocurrency users as they look for pro-crypto candidates to vote for.
Despite slow movement on crypto in the U.S. government, many prominent political figures have made their stances clear on digital currency. Congress and local officials will of course play a big part in cryptocurrency laws and regulation, so every vote matters and each race is important. Yet any time there’s a presidential election, that race will hog the spotlight and each party’s candidate will generally set the lead for down-ticket candidates to follow.
So, let’s take a look at what the two major party nominees are saying about cryptocurrency:
Donald Trump on Cryptocurrency
Many recent headlines have been hailing Donald Trump as a crusader for cryptocurrency. He has certainly been actively courting crypto fans this election season, and with “tech bro” financing behind his campaign, it’s likely he’ll continue to push pro-cryptocurrency messages through to November.
As with many things Trump says, there is often a lack of specifics. So while he has spoken recently in favor of cryptocurrency, no specific policies have been announced. There are no mentions of cryptocurrency on his campaign website, aside from the fact his supporters can donate to the campaign with crypto.
His current position on crypto also comes as a considerable pivot from his previous views. In 2019, then President Trump tweeted, “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….”
His campaign however has sold NFTs (marketed as “Digital Trading Cards”) and, as mentioned, he accepts crypto donations. Plus, many prominent figures have changed their position on cryptocurrency as they’ve learned more about it and as adoption has grown to become more mainstream. It’s certainly possible Trump’s pivot is sincere.
Some cryptocurrency users are suspicious of his recent change of heart on the subject, though. It’s also clear in how he speaks about cryptocurrency that he personally does not have a strong understanding of the topic (but does any current politician?), so it’s entirely possible his new position on crypto is a calculated electoral decision, hoping to woo over cryptocurrency users at the ballot boxes. The financial backing of people like Elon Musk could also play into his acceptance of cryptocurrency.
So while Donald Trump is now speaking quite favorably about cryptocurrency, it’s hard to say how much good he actually will do, or even cares to do, for cryptocurrency. Perhaps his crypto-donors will persuade him to push for positive reforms to how cryptocurrency is handled by the U.S. government. Or it’s entirely possible he never mentions crypto again after the election. Only time will tell, and hopefully more of his policy ideas regarding cryptocurrency will come out as the election progresses.
Kamala Harris on Cryptocurrency
While the Biden administration has been largely seen as “tough” on crypto, Vice President Kamala Harris has not been vocal either way on the subject. For many cryptocurrency users, Biden dropping out of the race meant a fresh start on the issue, hoping that Harris would be more open and understanding to the issue than her 81-year old boss. However, others fear she’ll bring a continuation of Biden’s anti-crypto policies.
“She hasn’t said a ton publicly about her views on crypto, but obviously she’s part of the current administration,” said David Yaffe-Bellany, crypto reporter for The New York Times. He goes on to note that the messaging has eased during election season, though. “With that said, both the Biden campaign and now the Harris campaign have extended something of an olive branch to crypto companies, sort of invited them to come to the table and sort of talk about the policy changes they would like to see.”
So, perhaps similar to Trump, Harris could be making a calculated move to court cryptocurrency users. She has not been as vocally pro-crypto as Trump has been and perhaps her strategy is that keeping silent on the issue would avoid rocking the boat for either side. Cryptocurrency is clearly an important issue for many this election, but her campaign has so far not prioritized it.
The Democratic Party also seems to be a bit mixed on the subject. Some in the party are suggesting a “forward-thinking” approach to cryptocurrency, while others are pushing for stricter regulations and laws. Anti-crypto Democrats, such as Elizabeth Warren, want to ensure cryptocurrencies are taxed and not used for money laundering or other illegal purposes. Of course, in order to do that, the U.S. government would need to get around the inherent privacy and decentralization built into blockchains. So at the moment, the Democratic Party is involved in a kind of “tug-of-war” on the issue of cryptocurrency, and we can’t say for certain whose side Kamala Harris is pulling for yet.
Despite the ambiguity, Harris also has her share of pro-crypto donors, including Mark Cuban.
There’s Always RFK, Jr.
If we’re being honest, the most pro-crypto candidate on the ballot is Robert F. Kennedy, Jr. He has consistently spoken in favor of cryptocurrency, calling for specific pro-crypto policies. He famously stated that he’s going to “put the whole U.S. budget on the blockchain”, and wants to exempt Bitcoin from taxes.
“We need sovereignty over our own wallets, transactional freedom and a currency that is transparent,” Kennedy said in an interview with Blockworks. He’s also stated that he plans to have the U.S. government hold Bitcoin as a reserve asset, just like with gold.
Kennedy shared some skepticism about Trump’s pivot on the topic, saying, “I hope President Trump’s commitment to bitcoin is more than political expediency.”
It Might Not Matter Who Wins
Even though Kennedy is by far the most pro-cryptocurrency candidate running, the two major contenders may not actually be very different from each other on the matter. Both the Trump and Harris campaign are hugely funded by prominent crypto-supporters, and whoever wins will likely do so thanks in large part to mainstream voters who own cryptocurrency. That will certainly give political pressure to treat crypto fairly, and so there is good reason to be optimistic about this election when it comes to the issue of cryptocurrency. Whether it’s Harris or Trump, the crypto movement has gained serious political steam with mega-donors pushing their influence behind the scenes and mainstream crypto voters making their positions clear at the ballot box.
So regardless of the right vs left rhetoric, the culture wars, the namecalling and whatever other divisiveness plays out in the coming months, cryptocurrency looks like it will be a uniting force bringing the majority of Republicans and Democrats to the same side of the table. With Biden out of the equation, cryptocurrency policy in the U.S. looks poised for a strong reboot.
