The growing influence of the cryptocurrency sector has made the potential impact of the upcoming U.S. presidential election a focal point of discussion among investors. According to analysts at TD Cowen, both Kamala Harris and Donald Trump are perceived as more favorable to the industry than the current administration under Joe Biden.
Kamala Harris is expected to approach the crypto market with caution, prioritizing investor protections while showing some openness to digital assets. In contrast, Donald Trump, who has recently adopted a more supportive stance toward cryptocurrency, may delegate decisions to his financial regulators, as the issue is unlikely to be a central focus for him in a potential second term.
“Kamala Harris is more open to crypto and digital assets than Joe Biden,” TD Cowen analysts noted. “However, we don’t see this as a priority and believe the industry could continue to face challenges from hostile regulators.”
When comparing Harris to Trump, the situation becomes more complex. While Trump has recently positioned himself as a crypto advocate, the analysts warn that this support may not necessarily translate into more lenient regulatory actions if he were to win a second term. Historical patterns suggest that despite his campaign rhetoric, significant policy advancements might not follow.
As the election approaches, the crypto lobby has leveraged the sector’s wealth creation to build political influence. The Biden administration has also engaged with the industry to explore potential policy directions, while Trump has pledged to be the “crypto president,” dropping his previously critical stance on the sector.
Despite these developments, TD Cowen analysts urge caution in interpreting campaign promises as indicators of future policy. “Harris is not Biden when it comes to crypto,” the analysts highlighted, suggesting that she may be more receptive to the industry and supportive of initiatives that encourage its growth. However, she is also unlikely to oppose efforts to strengthen investor protections, meaning the SEC would likely continue to oversee most tokens and trading platforms under her leadership.
Both Harris and Trump are expected to back crypto market structure legislation if it passes through Congress, with Harris potentially advocating slightly more stringent investor protections. A significant difference may emerge in their approach to the banking sector: Trump could favor fewer restrictions, depending on his appointees, while Harris is anticipated to move more cautiously in this area.
Related Topics:
