On May 9, 2023, discussions highlighted the critical role of US elections for cryptocurrency investors. This sentiment has since gained traction globally. How should recent developments be interpreted through this lens?
Cryptocurrencies and US Elections
Presidential hopefuls such as DeSantis, Robert F. Kennedy, and Ted Cruz are making concerted efforts to appeal to the crypto community. Statements from the previous year on cryptocurrencies offered a mix of entertainment and morale-boosting amid sluggish market conditions, with Trump’s NFTs providing a notable example.
Previously, it was noted:
“The true significance of these issues will be better understood as the election heat intensifies next year. With cryptocurrencies featuring in political promises, we might be laying the groundwork for the next bull market. Most crucially, the possibility of curtailing the stringent regulations imposed by the current Democratic administration is worth considering.”
November Elections and Today
Current events reflect the earlier predictions. Trump has explicitly pledged crypto freedom. Meanwhile, Democrats face a tough electoral battle. Recently, a crypto-friendly bill passed with bipartisan support and now sits on Biden’s desk. Even senior Democratic members support the legislation, making a veto unlikely.
In a climate where every vote counts, crypto investors are hesitant to back Trump. The upcoming vote on the 21st Century Crypto Act is expected to garner bipartisan support again. This pressure likely influenced the SEC’s recent shift on the ETH ETF issue as the November elections approach.
In South Korea, crypto-friendly parties have won local and parliamentary elections. In the US, several states are precarious for Democrats. Biden’s stance on crypto will significantly impact young investors’ voting decisions.
Implications for Crypto Investors
- Trump promises crypto freedom, which could sway undecided voters.
- Bipartisan support for crypto legislation indicates a shift in political strategy.
- Biden’s moderate approach may appeal to young crypto investors.
- The SEC’s stance on ETH ETF reflects the political environment’s influence.
- Crypto policies could be pivotal in swing states.
As November nears, Biden may adopt a more moderate stance on crypto, potentially making bold promises on taxation. Conversely, Trump is likely to make more enticing offers to secure this voter base, such as symbolic figures on crypto taxes or incentives for crypto companies. The political bargaining will intensify, and Biden’s response remains to be seen.
Time will tell how these dynamics play out.