Come Election Day, Crypto Might Just Swing It for Trump

by

As a seasoned crypto investor with a deep understanding of the market, I believe that the future of cryptocurrency is an essential consideration for voters in this presidential election. The recent shift in former President Trump’s stance on crypto and his renewed promise to support the industry has raised eyebrows and sparked debate about whether he would truly be good for crypto.

As the US presidential elections approach, the fate of cryptocurrencies has become a significant concern for a large number of voters, making it an essential topic for debate.

There’s increasing belief that Donald Trump, a former US president, has shifted his position towards the crypto industry and intends to secure a prosperous future for it if he returns to power. However, is it genuinely plausible that Trump will prove beneficial for cryptocurrencies? Moreover, in light of significant issues like abortion rights and immigration, should voters make crypto’s future a top priority?

Trump’s Pivot

During his initial term as president, Trump was known to have a critical stance towards cryptocurrencies. He frequently expressed concerns similar to those of other political figures, such as the allegations that crypto is primarily used for money laundering and other illegal activities, and that its value is intangible and not backed by any physical substance.

Moving on to another presidential term, Joe Biden and the Democrats are presently in control of the White House, while Trump is attempting a comeback. Facing heightened scrutiny due to ongoing scandals linked to his criminal trials and their significant expenses, Trump has unexpectedly changed his message.

This month, Trump surprised the cryptocurrency community by hosting an exclusive event for owners of his non-fungible tokens (NFTs) at Mar-a-Lago, Florida. During the gathering, he shared concerns with attendees about alleged plans from President Biden and SEC Chairman Gary Gensler to restrict crypto activities. Trump positioned himself as the best option for crypto supporters.

BREAKING: DONALD TRUMP IS FINE WITH CRYPTO

— Frank (@frankdegods) May 9, 2024

Trump’s stance on cryptocurrency has changed in response to the Biden administration’s plan to reject the H.J.Res. 109 SEC Crypto Bill. This legislation, if passed, would allow US-regulated financial institutions to safely store digital assets.

Following that declaration, several notable figures in the cryptocurrency sector criticized President Biden and the Democrats. Ryan Selkis, the founder and CEO of Messari, expressed concern on X (previously Twitter), stating that if Biden is re-elected, he may introduce numerous unfavorable regulations against crypto. In contrast, Charles Hoskinson, a co-founder of Ethereum and current leader of Cardano, accused Biden of harming the crypto industry “in every possible way.” He also highlighted that while Trump generally disregarded crypto during his first term, the Biden administration has launched a full-scale attack on the sector as part of an orchestrated campaign to eliminate it.

Trump seems to have become aware of the Democrats’ campaign against cryptocurrencies and is attempting to win over disgruntled supporters by advocating for a more welcoming approach. He has stated that political antagonism towards crypto is causing the industry to leave the US. To prevent this exodus, he urged, “We need to allow them to exist here.”

Crypto Cannot Be Ignored

Crypto has emerged as a significant arena of contest between Trump and Biden due to the substantial number of digital asset owners among the electorate.

As a crypto investor, I’ve closely followed the findings of Paradigm’s poll published on March 14. The data revealed that approximately one out of every five registered voters in the US has previously owned cryptocurrency. This significant number underscores the importance of considering their perspectives and preferences when it comes to crypto-related policies or regulations.

Additionally, a noteworthy portion of crypto owners have shown potential for shifting allegiances between candidates. According to Paradigm’s survey, only 39% of these individuals supported Trump in the 2020 election. However, an upward trend is observed, with 48% expressing their intent to vote for him this year. The influence of these voters could be substantial in several “swing states,” which play a crucial role in deciding the presidential election outcome.

As an analyst examining the data, I can assert that the collective findings suggest that crypto owners possess the potential to act as a pivotal voting bloc in elections, especially in cases where the margin of victory is narrow.

Siddarth Singhal, the Head of Business Development at Trilitech – a prominent blockchain technology company – emphasized that the role of cryptocurrencies in this election should not be disregarded. He highlighted that it’s not just individual voters who hold significance but also financial institutions, an increasing number of which have adopted crypto as well.

“It’s important to acknowledge that more than 15% of American voters have engaged with crypto, and thirteen of the top twenty-five U.S. hedge funds purchased Bitcoin ETFs during the first quarter this year. This level of adoption represents significant progress compared to other issues. The trend is clearly moving forward, suggesting that crypto integration is here to stay.”

Should Voters Even Care?

An Op-Ed penned by Molly Jane Zuckerman and Jeff Albus at BlockWorks recently sparked controversy as they cautioned against blindly supporting political candidates solely based on their perceived friendly stance towards cryptocurrencies, arguing that such allegiance might not protect the industry in the long run.

As a crypto investor, I believe it’s unwise to base my voting decision solely on cryptocurrencies. Supporting a candidate whom I wouldn’t typically align with, merely because they advocate for deregulation in this sector where I have financial gains, is a compromise I wouldn’t recommend making.

While most political candidates who support crypto may be motivated by winning votes rather than advancing the crypto movement, it’s important to note that crypto is becoming an increasingly divisive topic in its own right. For some people, crypto goes beyond being just a new form of currency or an investment opportunity. It embodies a philosophy and a way of life centered around decentralization and the vision of “Web3.” This perspective holds the potential to significantly impact individuals’ choices and limit the influence of governments in their lives.

As a researcher studying the cryptocurrency scene, I’ve noticed that crypto enthusiasts generally want to keep this emerging technology apolitical. They urge politicians to approach it with an open mind, disregarding any potential regulatory hurdles and instead focusing on the numerous advantages it could bring.

In a trustless Web3 environment, we will depend on a decentralized internet with unyielding networks that are both financially robust and democratic in nature. The focus of our conversations should shift towards creating and implementing systems that foster transparency and trust in procedures, such as elections. This can be achieved by diminishing central control and introducing verifiable, immutable methods instead.

Will Trump Really Be Better for Crypto?

A increasing number of voices believe that a second term for Trump in the White House could benefit cryptocurrencies, considering the Republican lawmakers who have previously expressed support for digital money. However, it’s important to note that Trump’s apparent enthusiasm for cryptocurrencies might not be sincere, and he may choose to overlook the issue once back in power. Regardless, it’s highly unlikely that Trump would take steps to hinder cryptocurrencies upon his return to the presidency.

If Biden emerges victorious in the election, it’s likely that his administration will persist in their efforts to tighten controls and impose stricter regulations on the cryptocurrency sector. This scenario might leave crypto proponents wishing for a more hands-off approach.

Read More

2024-05-23 12:53