The future of cryptocurrency in the United States looks promising, with expectations of a more supportive climate under the next administration, regardless of which party prevails in the upcoming November election. This sentiment was highlighted by Coinbase CEO Brian Armstrong, who emphasized the growing political influence of the crypto industry.
Despite its volatile nature and the intense scrutiny from the US Securities and Exchange Commission (SEC) for allegedly flouting securities laws, the crypto sector has gained substantial support from Wall Street institutions and influential figures like Elon Musk. The approval of US exchange-traded crypto funds has further bolstered its mainstream appeal. Recently, both the Republican and Democratic parties have acknowledged the industry’s increasing clout.
“Crypto advocates are making their voices heard as an important voting bloc. Politicians on both sides of the aisle have taken notice, and there is growing momentum to pass comprehensive crypto legislation,” Armstrong told analysts.
Coinbase, the largest crypto exchange in the US, is currently engaged in a legal battle with the SEC, which sued the company last year for allegedly failing to register as an exchange.
Three major pro-crypto super political action committees (PACs) — Fairshake, Defend American Jobs, and Protect Progress — have emerged during the current election cycle, raising over $230 million to support crypto-friendly candidates. This influx of funds is making a significant impact on both political parties.
Republican presidential candidate Donald Trump recently pledged to create a “stockpile” of Bitcoin, highlighting his pro-crypto stance. Meanwhile, Democratic vice president Kamala Harris’ advisers have reached out to top crypto companies to “reset” relations, according to a report by the Financial Times.
“Donald Trump is pro-crypto which theoretically creates a tailwind for the industry if he wins,” said Dan Coatsworth, an investment analyst at AJ Bell. “We don’t yet know Kamala Harris’ position but there are reports she could take a softer stance … than Joe Biden.”
A potential shift in regulatory stance would be a significant victory for the crypto sector, which has long warned that stringent SEC regulations could drive crypto entrepreneurs overseas.
Mike Colonnese, an analyst at HC Wainwright & Co, highlighted the potential benefits of a regulatory shift. “A regulatory shift has the potential to bring a new wave of institutional capital into the space that would have otherwise been sidelined,” he said.
As the US heads towards a pivotal election, the growing support for cryptocurrency from both political sides suggests a brighter future for the industry. The engagement from key political figures and significant financial backing underline the increasing importance of crypto in the national conversation.
“US crypto climate expected to improve with political shifts. Coinbase CEO highlights bipartisan support and potential regulatory changes, boosting the sector’s future prospects.”
