In the current landscape of the crypto market, the upcoming presidential election holds significant weight in shaping the industry’s future. Analysts from TD Cowen have expressed their opinions on how different candidates may influence the market, with Kamala Harris and Donald Trump being seen as more favorable compared to Joe Biden. Harris, according to analysts, is expected to approach crypto with caution, prioritizing investor protections. On the other hand, Trump may rely on his financial regulators, as crypto is not likely to be a primary focus in a potential second term.
When comparing Trump to Harris, the situation becomes more complex. Trump has recently positioned himself as a supporter of the crypto industry while seeking its backing. However, historical patterns suggest that this support may not lead to more relaxed regulatory actions during a second term. The lobby within the crypto sector has been utilizing its economic influence to build political power as the election nears.
The Biden administration has been engaging with the crypto industry to explore possible policy directions, while Trump has rebranded himself as the “crypto president” and shifted away from his previous criticisms of the industry. Despite these campaign promises, TD Cowen analysts warn against confusing rhetoric with actual policy changes.
Analysts highlight that Harris has shown more openness towards the industry compared to Biden, indicating a potential willingness to support policies that foster growth. However, Harris is also expected to support efforts aimed at reinforcing investor protections in the crypto space, with the SEC likely to play a significant role in overseeing tokens and trading platforms under her leadership.
Both Harris and Trump are anticipated to back legislation related to the crypto market structure if it successfully passes through Congress. Harris may lean towards slightly stricter regulations on investor protection, but not to a degree that would severely impact industry operations. The key difference may lie in their approach towards the banking sector, with Trump potentially favoring fewer restrictions, subject to the personnel he appoints, while Harris is likely to proceed with caution in this realm.