As President Joe Biden bows out of the race for the White House, attention is now turning to Vice President Kamala Harris, the Democratic Party’s potential nominee, and her stance on supporting innovation within the crypto industry.
However, the market is divided on whether its rise will lead to a more favorable environment for cryptocurrencies or whether the regulatory repression The difficulties encountered in recent years under the Biden administration will continue.
Billionaire investor Mark Cuban has weighed in on the issue, suggesting a potential policy shift under the Harris administration. At the same time, analysts are speculating that a return of Donald Trump to the White House could lead to a weakening of the dollar, which some say could benefit Bitcoin and other cryptoassets.
Potential support for AI and cryptography
Based on Harris’ record as a U.S. senator and attorney general in California and her positions during her brief 2019 presidential campaign, a Politico report suggests that industry leaders view Harris as likely to take a more progressive approach to innovation than President Biden.
However, Harris’ rapid rise has left many industry insiders uncertain about his stance on cryptocurrency regulation or related issues surrounding the emerging industry.
Mark Cuban, a well-known cryptocurrency proponent, expressed optimism, suggesting Harris might be “more open for business” regarding artificial intelligence (AI), crypto assets and government services. In an email to Politico, Cuban said:
The feedback I’m getting, but certainly not confirmed by the VP, is that she’s going to be much more open to business (AI), crypto, and government as a service. Changing the policies changes the message and lets everyone know she’s in charge and open, literally, to business.
Trump’s Trade Effects
On the other hand, if Donald Trump were to return to the White House, some analysts speculate that his policies could lead to a weaker dollar, which would ultimately benefit “riskier assets” such as cryptocurrencies and gold, a phenomenon known as the Trump Trade.
Market expectations of a weaker dollar under a Republican administration, combined with the debut of cryptocurrency-focused exchange-traded funds earlier this year, such as the successful Bitcoin ETF market, have helped drive BTC prices higher and are likely to do so again in the scenario where Trump wins the seat in the Oval Office.
Fadi Aboualfa, research director at Copper Technologies, said the recent surge in Bitcoin price is mainly due to economic factors rather than Trump’s explicit support for the crypto industry.
However, Noelle Acheson, author of the Crypto Is Macro newsletter, believes that many other assets will outperform soon and that this is still the case. short term traders and investors who determine the current price of BTC.
Additionally, Acheson claims that the German government’s large-scale sales have caused major volatility in Bitcoin in recent weeks, and that similar “hurdles” could be difficult for the asset to overcome regardless of which side Washington is on. Acheson concludes by stating:
“This is important for Bitcoin because there are few assets that have such a diversity of narratives,” Acheson said. If history were to repeat itself and the election result was not respected, “that would be pretty disastrous.”
At the time of writing, the market’s largest cryptocurrency is trading at $65,970, down more than 2% over a 24-hour period.
Featured image of DALL-E, chart from TradingView.com
