Crypto Market Seeks Clarity From Harris, Gains If Trump Wins

According to US investment bank Bernstein, the crypto community is urging Democratic presidential candidate Kamala Harris to adopt a more definitive stance and implement actionable policies.

Harris Expected to Clarify Position on Digital Assets

In a client memo dated September 23, 2024, Bernstein analysts pointed out several factors contributing to the temporary rally seen in digital assets over the weekend.

One significant factor is the potential for bipartisan backing for the crypto-economy. During a Wall Street fundraiser, Harris noted that her administration would “foster innovative technologies like AI and digital assets while safeguarding consumers and investors.”

Remarkably, this marked the first instance where Harris explicitly mentioned digital assets in her speeches. Bernstein analysts remarked:

This stands in stark contrast to Trump’s clear ‘America as the crypto capital’ approach, which includes specific policy commitments — a welcoming SEC chair, a national bitcoin stockpile, support for Bitcoin mining in the U.S., regulation of stablecoins, and more. However, the crypto community expressed some relief that both candidates indicated support.

Nevertheless, the crypto community seeks tangible actions and consistency from Harris’s team before reconsidering its political alignment. The Democrats face a formidable challenge in persuading the community away from pro-crypto Republican candidate Donald Trump, especially in light of criticism directed at the Biden administration for its stance on the emerging industry.

For example, in July 2024, Democratic U.S. Senator Elizabeth Warren garnered support from Wall Street banks for her legislation requiring digital asset miners, validators, and wallet providers to adhere to Know-Your-Customer (KYC) regulations.

Crypto Sentiment Expected to Strengthen Under Trump Presidency: Bernstein

The memo further suggests that a Trump victory would likely enhance sentiment towards digital assets in the U.S. The nation has struggled with unclear digital asset regulations for years, prompting many businesses to seek refuge in countries with more developed regulatory systems. The memo states:

We maintain that crypto market sentiment would likely improve under a Trump administration, as it would signal a new policy direction and potentially broader regulatory support for DeFi, asset tokenization, and NFTs, beyond just bitcoin.

In other news, Trump was recently observed using Bitcoin (BTC) to purchase hamburgers at a bar in New York City prior to a campaign rally. It’s essential to note that Trump has not always been an advocate for crypto.Only in the lead-up to the 2024 presidential elections did the former U.S. President shift from being a crypto-skeptic to a dedicated supporter.

While most analysts anticipate a Trump victory would favor the digital assets market, some argue that Bitcoin’s long-term prospects remain positive, irrespective of the election outcome in November. As of now, BTC is trading at $63,213, up a slight 0.7% in the past 24 hours.