The cryptocurrency industry is expected to continue its upward trajectory, no matter the results of the upcoming U.S. presidential election, according to a recent report from Korea’s largest coin exchange, Upbit, released by the Upbit Investors Protection Center on Friday.
The report delves into the cryptocurrency-related pledges of both major U.S. presidential candidates and suggests that the industry’s growth is set to remain robust, with varying degrees of regulatory involvement depending on the election’s outcome.
“If Democratic presidential nominee Vice President Kamala Harris, who is expected to continue President Joe Biden’s policy direction, wins, the cryptocurrency industry is expected to see gradual growth within a regulatory framework,” the report stated. It suggested that Harris’ approach would likely be measured, promoting industry expansion while maintaining oversight.
Conversely, should former President Donald Trump reclaim office as the Republican candidate, the report predicts a more volatile market environment. “On the other hand, if Republican presidential candidate and former President Donald Trump wins, the volatility of cryptocurrencies could increase significantly,” the analysis pointed out, reflecting Trump’s unpredictable stance toward the financial sector.
Crypto’s Growing Political Influence
One of the key factors driving the optimistic outlook for cryptocurrency, irrespective of the election’s outcome, is its rising influence in political campaign funding. The Upbit report, citing data from U.S. market research firm Morning Consult, highlighted that 22% of Americans were investing in cryptocurrencies as of last year, making this a sizable voter base that candidates are keen to appeal to.
As a result, both Harris and Trump have adopted more favorable positions towards the industry, signaling a shift towards crypto-friendly policies to capture this influential demographic. The political support for cryptocurrency is further evidenced by the significant increase in contributions from cryptocurrency companies to federal campaigns.
Surge in Crypto Donations
According to Washington-based nonprofit research group OpenSecrets, cryptocurrency companies have contributed $119 million to federal election campaigns this year, making up a staggering 43% of total donations. This marks an enormous jump from the mere $4.6 million in contributions made in 2022, signaling the crypto industry’s growing financial clout in American politics.
Leading the charge in these contributions are major industry players such as Coinbase and Ripple, who are backing a blockchain-focused super PAC named Fairshake. Super PACs, unlike traditional PACs, are able to raise and spend unlimited amounts of money from individuals and organizations, provided they do not contribute directly to a specific candidate or party. This allows them to wield considerable influence without the same restrictions as other political action committees.
“Currently, the leading contributors are Coinbase and Ripple. These companies are backing a blockchain-focused super PAC called Fairshake, which supports candidates across the political spectrum whose positions align with the crypto industry’s interests,” the report noted.
Future Legislative Support
As Fairshake emerges as one of the wealthiest super PACs in this election cycle, the Upbit report anticipates that policies and legislation favorable to the cryptocurrency industry will be further strengthened in the future. With the influence of crypto companies growing, it is expected that both candidates will continue to endorse policies that support the growth of the digital currency sector.
Ultimately, while the U.S. presidential election may introduce different approaches to regulation, the report concludes that the cryptocurrency industry is set to thrive regardless of the outcome. With significant financial backing and increasing political relevance, the future of cryptocurrency looks bright as it continues to establish itself as a formidable force in both the financial and political arenas.
