- Yesterday, Kamala Harris chose Tim Walz as her vice president for the 2024 US presidential elections.
- A Harris-Walz administration will likely include more stringent cryptocurrency regulations.
- Conversely, Donald Trump and JD Vance’s pro-crypto stance may boost crypto investments and innovation.
- If Harris wins, enhanced regulation would improve consumer protection, but compliance costs, restrictions, and privacy concerns may deter Web3 startups.
On August 6, Democratic presidential candidate Kamala Harris chose Minnesota governor Tim Walz as her Vice President for the upcoming elections.
This could profoundly influence the crypto sector. Although Harris’ crypto stance remains a mystery, Walz (who served in Congress for 12 years) is notorious for his strict US crypto policies.
In contrast, Donald Trump and his vice president (JD Vance) are much more crypto-friendly.
Let’s examine how their differing perspectives might affect the crypto industry’s future.
Crypto Regulations May Tighten Under Harris
The Trump–Harris battle to win the 2024 US presidential elections is tight. The latest predictions suggest that Trump has a 52% chance of winning, while Harris trails closely behind with a 46% likelihood.
Walz’s approach to stringent US crypto policies suggests that regulatory crypto frameworks will intensify under Harris.
Earlier this year, he signed a law targeting crypto kiosks, setting a $2K daily limit and supplying fraud protections.
Unfortunately, crypto scams are becoming more common, and scammers used crypto kiosks to steal money from consumers. This new law works to protect Minnesotans from scams and to recover funds consumers lost to fraud.Commerce Commissioner, Grace Arnold
Increased regulatory oversight would better protect investors. However, they might dampen innovation and deter startups from joining the Web3 space because of privacy concerns, creativity constraints, and compliance costs.
Conversely, Trump’s pro-crypto political stance is garnering much attention and contributed to $BTC recapturing $68K when Biden dropped out of the US election race.
Trump’s Ongoing Advocacy for Pro-Crypto Politics
Trump is a relentless crypto advocate. On July 27, he headlined the largest Bitcoin conference, claiming he’ll make the US the ‘crypto capital of the planet and the Bitcoin superpower of the world,’ and to ‘never sell $BTC’.
The former president also announced that, if he wins the elections, he would fire the Securities and Exchange Commission’s (SEC) chairman, Gary Gensler (who has been aggressive toward crypto).
JUST IN: Crowd goes absolutely nuts after Donald Trump vows to fire SEC Chairman Gary Gensler during the Bitcoin Conference in Nashville, Tennessee.
Trump was clearly taken aback at the crowd’s reaction when he made the announcement.
“On day one, I will fire Gary Gensler and… pic.twitter.com/0CyOMaY6FY
— Collin Rugg (@CollinRugg) July 27, 2024
In the same month, Trump raised $4M+ in crypto donations. However, Harris doubled Trump’s campaign donations, garnering $310M compared to his $138.7M.
Trump also proposed establishing a Bitcoin reserve to tackle the US national debt, currently worth $35T. However, considering the total crypto market cap is ~$2T, and $BTC’s market share is $1.13T+, acquiring 1M $BTC would barely touch the tremendous debt.
To Summarize – Crypto Freedom or Stability?
If Trump wins the 2024 US elections, the country should become significantly friendlier to crypto investments and blockchain innovation.
On the flip side, if Harris wins, the US might face tighter crypto regulations and increased oversight. While unappealing to crypto absolutists, this might address industry issues like instability and scams.
Only time will tell how the election plays out, what it means for the crypto industry, and – potentially – what Harris truly thinks about US crypto policies.
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Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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