Would Trump or Harris be friendlier to crypto?

Donald Trump’s recent embrace of cryptocurrency at the Bitcoin 2024 conference in Nashville marks a significant shift from the former US president’s earlier skepticism.

Once a vocal critic, Trump now positions himself as a champion of digital assets, reflecting the broader convergence of politics and crypto in what is increasingly referred to as “PolitiFi.”

But even though Trump’s pivot garnered significant attention, it’s essential to explore how stances on cryptocurrency regulation could influence some voters in the United States leading up to the 2024 presidential election.

Biden’s evolving crypto stance

Historically, President Joe Biden’s administration and prominent Democrats, including Senator Elizabeth Warren, have expressed concerns about cryptocurrencies, focusing on risks related to consumer protection, financial stability and the potential for money laundering.

Gary Gensler, chairman of the US Securities and Exchange Commission, has played a key role in this stance. He’s advocated for treating many crypto assets as securities, thereby subjecting them to strict regulations similar to those governing stocks and bonds.

But the rising influence of cryptocurrencies has led to a shift within the Democratic Party. The passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in May 2024 — with considerable support from Democrats — indicates a growing recognition of digital assets’ importance.

Despite the Biden administration’s initial opposition to FIT21, there is now a willingness to work with regulators to develop a balanced regulatory framework for cryptocurrencies.

Vice President Kamala Harris, the Democratic presidential nominee, has not yet taken a definitive stance on crypto policy.