financemagnates.com
With the power of American democracy in full display right now, many crypto experts believe that the 2024 U.S. presidential election will be a defining moment in the history of the digital asset industry. This is because both candidates — i.e. Rep. Donald Trump and Dem. Kamala Harris — has proposed distinctly different visions for the future of this yet-nascent space.
To elaborate, what truly makes this election significant is the unprecedented emergence of cryptocurrency holders as a meaningful voting bloc. Recent surveys indicate that crypto ownership among Americans ranges anywhere between 7% to 21%, representing approximately 18 to 50 million potential voters.
More importantly, 73% of these voters have made it clear that they will consider a candidate's stance on crypto as a crucial factor in their voting decision. In swing states like Arizona and Georgia, where election margins were razor-thin in 2020, pro-crypto advocates now significantly outnumber previous margins, potentially making crypto policy a decisive factor in these states.
Crypto voters hold a lot of clout in battleground states. Here’s why
A DCG-commissioned survey from May 2024 — which included 1,201 voters from Michigan, Ohio, Montana, Pennsylvania, Nevada, and Arizona — found that over 20% of voters in these crucial states view crypto as a major issue in the ongoing election.
Not only that, the findings showed a strong commitment to upholding crypto-related agendas among digital asset-friendly voters, with over 90% of them determined to participate in the electoral process.
The survey also uncovered significant concerns about the current financial system, with 80% of the respondents stating that it unequivocally favors the elite strata of society. Among pro-crypto voters specifically, 66% view cryptocurrency as offering a more accessible path to financial success than traditional finance, while 55% expressed concern that overregulation could stifle innovation.
The contrasting visions of Mr. Trump and Ms. Harris explained
From the outside looking in, it is clear that both candidates have fostered a markedly different approach to crypto regulation and innovation. Donald Trump, for instance, has evolved his stance from being a skeptic to a full-blown pro-crypto advocate.
His campaign promises include establishing a Bitcoin reserve and creating a Presidential Advisory Council for crypto, with the ambitious goal of making the United States the "crypto capital of the planet."
Moreover, Trump's pledge to replace current SEC Chair Gary Gensler has resonated with crypto investors, contributing to recent market optimism — with several assets, including Bitcoin, closing in on their all-time high valuations recently.
In contrast, Kamala Harris's approach reflects a more measured stance. While she hasn't been as outspoken on her policy ideals, her campaign suggests a balanced-to-strict regulatory framework that aims to foster innovation while maintaining strong consumer protections.
The broader Democratic stance under the current administration has emphasized oversight and regulation, though Harris's Silicon Valley connections have led some to speculate about a potentially more tech-friendly approach than the current President Biden-led administration.
Implications for the market
As highlighted earlier, the crypto market has exhibited a lot of sensitivity to recent election-related developments, with Bitcoin touching the $72,000 mark after Tesla CEO Elon Musk told a Trump rally that he could help shave $2 trillion off the government’s annual budget.
As a result, industry observers believe that the outcome of the election could influence not only regulatory approaches and market dynamics but also the innovation emanating from this space.
In this context, platforms like GRVT, a hybrid derivatives exchange capable of processing 600,000 transactions per second, have gained a lot of traction, demonstrating how the industry has and will continue to mature and adapt to the changing regulatory landscape — while maintaining the core ethos of blockchain tech, i.e. transparency and accountability.
As ZKsync's first official Validium ZK Chain and backed by Matter Labs, GRVT exemplifies the kind of regulated, secure infrastructure that both candidates have emphasized in their crypto policy discussions.
Lastly, the platform's approach to combining off-chain order matching with on-chain settlements — while maintaining rigorous KYC and AML compliance standards — represents the type of balanced innovation that could thrive under either administration's regulatory outlook.
What’s on the horizon for crypto?
The election's impact extends beyond immediate market reactions to fundamental questions about the industry's future structure. The crypto sector has become increasingly engaged in political advocacy, contributing approximately $119 million to federal races in 2024.
Similarly, Super PACs focused on crypto-friendly policies have raised over $204 million, highlighting the industry's growing political influence and determination to shape its regulatory future.
Therefore, in the near future, it would not be unreasonable to assume that the 2024 election could mark a turning point for cryptocurrency adoption and regulation — at least in the Western economic bloc. Whether under a Trump administration promising deregulation and innovation or a Harris administration seeking balanced oversight, the industry appears poised for significant evolution. Interesting times ahead!