As Kamala Harris emerges as a front-runner for the 2024 presidential election, the crypto market appears apprehensive. This column explores the market’s reaction, the potential regulatory landscape under a Harris administration, and the broader implications for cryptocurrency.
Points
- Kamala Harris is a leading candidate for the 2024 presidential election.
- Crypto market shows apprehension about a Harris administration.
- Trump’s pro-crypto stance contrasts with Harris’s perceived regulatory approach.
- Potential for regulatory clarity and changes under Harris.
- Market’s current uncertainty and the broader implications for cryptocurrency.
Kamala Harris is emerging as a front-runner for the 2024 presidential election, and the crypto markets are not responding well. Bitcoin’s recent inability to break through the $70,000 barrier can be partly attributed to Harris’s rising odds against former President Donald Trump. Trump has positioned himself as the “crypto president,” pledging to maintain a strategic reserve of bitcoins and potentially offer regulatory relief to crypto companies.
Under a new Trump administration, the crypto market could see a reduction in U.S. regulatory hostility. This could attract new market participants, including large banks, to offer custody, banking, and trading services. Even with the launch of spot bitcoin and ether ETFs, firms like JPMorgan and Citigroup have largely avoided dealing with physical crypto. A Trump administration might change this, benefiting BTC prices and the overall market.
Despite concerns about Harris’s stance, there are promising signs she could adopt a more favorable approach to crypto. Many industry insiders believe a shakeup at the SEC is likely under her administration. According to Austin Reid of FalconX, the market is not fully pricing in the potential upside of either a positive Trump administration or a potentially favorable Harris administration.
“Regulatory clarity in the US plus a pro-crypto president would be a massive unlock with huge upside potential,” said Reid. “The market doesn’t seem to be pricing that in yet, reflecting the uncertainty of the election outcome and belief in a positive Harris campaign position.”
Noelle Acheson agrees, stating, “Any thawing in US regulatory hostility is pure upside. Trump dropping in the polls while Harris climbs is one of the factors keeping the BTC price depressed these days, in my opinion. The real upside is that few believe Harris can be pro-crypto.”
Harris’s outreach to industry insiders, Anita Dunn joining a Harris PAC, the possibility of a straightforward regulatory roadmap, and growing pressure from within the Democratic Party suggest a potential thaw in the party’s hostility towards cryptocurrency. Until Harris outlines a specific cryptocurrency policy roadmap that is at least slightly more positive than the current Biden administration, uncertainty will continue to drive the market.
解説
- The crypto market’s apprehension about a Harris administration reflects broader concerns about regulatory uncertainty.
- Trump’s pro-crypto stance contrasts sharply with the market’s perception of Harris, highlighting the importance of political leadership in shaping crypto regulation.
- Potential regulatory clarity under Harris could provide significant upside for the market, but current uncertainty keeps prices depressed.
- The influence of political campaigns on cryptocurrency prices underscores the interconnectedness of markets and political developments.
- Future regulatory landscapes will be crucial in determining the growth and integration of cryptocurrency within the broader financial system.