Will the US Presidential Election Shape Crypto's Future?
The 2024 US election is heating up, and the Kamala Harris crypto stance is gaining momentum as presidential candidate takes a hard line on regulating the controversial digital currency industry.
The cryptocurrency sector has faced increasing scrutiny under the Biden administration, with Vice President Harris leading regulatory efforts.
As elections approach, the future of crypto remains uncertain.
Is Kamala Harris Pro Crypto?
The head of the US Security and Exchange Commission (SEC), Gary Gensler, recently described the industry as “rife with fraud and hucksters and grifters.” In an interview with the BBC, Gensler warned that investors across the world have been suffering heavy losses due to crypto firms sidestepping regulations.
Gensler said many crypto firms are circumventing longstanding laws created to protect investors. “The investing public around the world has lost too much money,” he said, noting the SEC regulations since 1934 are in place to bring transparency and accountability for companies raising money from the public.
Kamala Harris and Cryptocurrency Stance
Arguments about what happens next with cryptocurrency have become a major issue in the coming US elections and the Kamala Harris crypto point of view, which does not seem to be known yet. One-time President Donald Trump, who is standing again, came out pro-crypto.
He recently founded a company called World Liberty Financial and vowed to make the US “the crypto capital of the planet,” even going so far as to propose a national Bitcoin reserve.
This is far from what he had told the cryptocurrency world a while back, when he once referred to Bitcoin as a scam. In stark contrast, the Biden administration, through Vice President Kamala Harris, has cracked down on the crypto industry. Over the past two years, several high-profile figures in the sector have been jailed, including FTX founder Sam Bankman-Fried and Binance founder Changpeng Zhao.
Crypto Industry Growth and Regulatory Challenges
The SEC has filed a record number of actions against Kamala Harris crypto view on these firms. Gensler blamed the sector’s disregard for rules as capable of undermining wider trust in financial markets.
“Crypto is just a small piece of the US and worldwide capital markets, but it can undermine trust that everyday investors have,” said the head of the SEC.
Proponents tout such benefits as faster and cheaper transactions, but crypto industry growth has also faced a decline in usage. Crypto’s use is falling in the US, according to a new Federal Reserve survey, which found that only 7% of Americans used it last year, down from 12% in 2021.
US Election and Cryptocurrency
As the US election and cryptocurrency discussions heat up, the cryptocurrency industry is heavily investing in political campaigns, hoping that future regulations will be shaped in their favor. According to research conducted by Public Citizen, the sector has already contributed $119 million to political donations, the highest among all industries with expectations to lead to the entry of more legislating members who would work towards the deregulation of their businesses and, thereby, more favorable oversight.
What’s Next?
With regulations only slowly catching up in the US, but also globally, the future of cryptocurrency policies remains ambiguous. One thing is crystal clear: the result of the upcoming election may keep immense ramifications for what direction Kamala Harris and crypto policies will take.
Whether the industry continues to grow or faces tighter regulations largely depends on the political landscape post-election.
Inside Telecom provides you with an extensive list of content covering all aspects of the Tech industry. Keep an eye on our Cryptocurrency section to stay informed and updated with our daily articles.