Harris presidency might not be negative for crypto, CoinShares suggests

Source: Crypto Briefing

A recent report by asset management firm CoinShares discusses the potential impacts related to the US elections. While Donald Trump shows himself as a pro-crypto candidate, Kamala Harris might show a balanced stance towards the industry.

Trump has selected J.D. Vance, a former venture capitalist with a strong pro-crypto stance, as his running mate for the 2024 election. Vance, who held between $100,000 and $250,000 worth of crypto on Coinbase in 2022, is already circulating a draft proposal to overhaul crypto regulation in Washington.

Trump’s relationship with Bitcoin has evolved significantly. He now supports crypto and accepts campaign donations in Bitcoin. Trump met with Bitcoin miners in June and posted on Truth Social that Bitcoin Miners may be “our last line of defense against a CBDC.”

Trump has pledged to fire SEC Chairman Gary Gensler on day one of his presidency due to anti-crypto lawsuits and poor progression on crypto regulation. He also expressed support for stablecoins to extend US Dollar dominance and block future attempts of CBDCs.

However, Trump has a background in applying protectionist measures and inflationary trade policies, which might make the dollar strong and negatively impact Bitcoin’s price, according to CoinShares.

Harris stance still unclear

Kamala Harris’ position on crypto remains unclear, although a more balancer approach to this industry is already a positive development compared to Joe Biden’s stance, CoinShares highlighted.

“Some members of the Democratic Party have begun to explore alternative perspectives on crypto regulation, as evidenced by the 32 Democrats who joined Republicans in supporting a bill to reconsider the SEC’s approach to digital assets — a bill that was ultimately vetoed by President Biden,” the report added.

Moreover, an estimated 50 million US citizens are engaged with crypto currently, and this could put pressure on Harris to address the blockchain industry with a softer tone. Notably, the Democrats’ movement to support the bipartisan bill could even motivate Harris to follow a similar note.

Some speculate that a Harris presidency might be less favorable to Bitcoin and digital assets than a Trump presidency. However, with an estimated 50 million Americans engaged with cryptocurrencies, Harris may need to consider a more balanced approach to the crypto industry.

CoinShares also underscores that, although Trump’s stance is clear and Harris’ background suggests she might take the crypto matter cautiously, it remains to be seen if the Democrat presidency could be less favorable to Bitcoin.

“Overall, Trump’s presidency could create a mixed but potentially advantageous landscape for Bitcoin. A more balanced approach to crypto could set Vice President Harris apart from the Biden administration’s more critical stance, aligning her with Democrats who are advocating for positive crypto legislation,” concluded the report.

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Author: Gino Matos