US elections are more than just the choice of a head of the country. As we’ve seen during the last two presidencies, the president has a key role in the composition of the Supreme Court and the appointment of new judges. In a period where cryptocurrencies are just about to be regulated and where so much depends on this crypto regulation, it’s safe to say that the 2024 elections might come to determine the future of crypto.
Here’s why all of this is so important!
It is not just about Bitcoin
Bitcoin has almost transcended into something else. It’s a transactional asset, similar to a lot of major cryptocurrencies. Now, while you may believe it to be much more volatile, this volatility is nowhere near as exclusive to crypto as you think.
A major political event like Brexit will cause the GBP to plummet, as the 2016 elections shook USD for a few days and weeks. Then, we all saw what the start of hostilities in Ukraine did to RUR. Sure, all of these currencies bounced back eventually, but not BTC.
Moreover, there are some predictions that BTC will reach its highest point ever by the end of the year, regardless of who wins.
However, it’s not just about BTC. What about presales, ICOs, and new meme coins to invest in? These smaller and newer assets are already under more scrutiny, and people have a hard time trusting them, so if there’s an unfavorable regulation, they might not look so good.
Well, thankfully, both candidates have a favorable stance toward the future of crypto.
The stances of both candidates
Trump is a huge crypto-supporter. As such, he has the massive support of the crypto community. When his popularity is up, the price of crypto is rising. When his popularity goes down, the price of crypto plummets.
Take, for example, the first assassination attempt. It was an unsuccessful attempt, and the photos taken made Trump look heroic. This was just a bit after Biden’s disastrous performance in their debate, and it seemed that Trump’s presidency was inevitable. As a result, the value of BTC increased by 4%.
On the other hand, Trump’s first presidential debate against Kamala didn’t go so well. As a result, the price of BTC dropped by 2.6% during the debate. We’re talking about just three hours here.
In Trump’s opinion, the US is supposed to lead the world in crypto regulation. So, instead of waiting for the EU to come up with a regulation framework like MiCA, he believes that the US should come up with a crypto-friendly regulation of its own.
This would be huge since crypto currently operates in a sort of gray regulatory area. This is what’s preventing institutional capital from committing more seriously to it. With favorable regulations (or any regulations at all), there’s a chance that this could be turned.
In the past, Kamala made some pretty negative comments about crypto but has been deliberately silent on the topic since announcing her candidacy. A president’s stance is not just their personal opinion; it’s the stance of the party, which is why it’s so important that she takes these matters under advisement. Recent news from her camp shows some optimism regarding future crypto regulation, but there are still no public announcements.
It is not just about the candidates, either
Finally, you need to understand that this is not just about the candidates either. Even something as seemingly disconnected as the integrity of the election could affect the future of cryptocurrency.
For instance, a series of emails has recently revealed a network of Georgia election officials actively working to cast doubt on the integrity of the upcoming elections. Uncertainty is never good for financial instruments, and cryptocurrencies are hardly an exception.
Under these conditions, fiat currencies, cryptocurrencies, and stocks would go down, while commodities (like gold and resources) would increase in value.
So, the integrity of elections and US government institutions may be far more important than you would expect.
These elections may end up defining the future of cryptocurrencies
No matter who wins, the cryptocurrencies are not going anywhere. However, the future of the legislative branch may be decided by this election, which is huge for an asset that’s still not fully regulated. So, people who are investing in cryptocurrencies, crypto developers, and those who plan to start using it are currently following politics very closely.
