Harris Presidency: A Turning Point for Crypto Policy and Regulation
Investors are currently engaged in a lively debate about the potential impact of the upcoming presidential election on the market, as the crypto sector’s influence has experienced significant growth over the past year.
TD Cowen analysts have determined that Kamala Harris and Donald Trump are perceived more favourably for the industry compared to Joe Biden.
Harris is expected to approach crypto with caution, placing a strong emphasis on investor protections. On the other hand, Trump may rely on his financial regulators to handle crypto matters, as it is not anticipated to be a central focus during a potential second term.
“According to TD Cowen analysts, Kamala Harris is seen as more receptive to crypto and digital assets compared to Joe Biden. However, they do not consider this a top priority and anticipate potential challenges from regulatory authorities in the industry.”
There are subtle differences when comparing Trump to Harris.
In recent times, Trump has taken on the role of a supporter of cryptocurrency, actively seeking the industry’s backing. Nevertheless, TD Cowen highlights that historical patterns indicate that this newfound support may not necessarily result in more relaxed regulatory actions during a potential second term for Trump.
Bank analysts have observed that as the election approaches, the crypto lobby has used the sector’s wealth creation to gain political influence.
Recently, the Biden administration has been actively involved in engaging with the crypto sector to explore various policy directions. Meanwhile, Trump has expressed his support for the cryptocurrency industry, signalling a shift in his previous stance.
However, analysts at TD Cowen advise against jumping to conclusions based solely on campaign rhetoric, as it may not necessarily translate into tangible policy progress.
“Analysts emphasised that Harris differs from Biden in her approach to crypto,”
She appears to have a positive outlook on the industry and is likely to be supportive of policy initiatives that promote its growth.
On the other hand, it is improbable that Harris will resist endeavours to enhance investor protections in the crypto industry. It appears that under her leadership, the SEC would maintain a significant role in overseeing most tokens and trading platforms.
Experts predict that both Harris and Trump are likely to back legislation on crypto market structure if it successfully passes through Congress. With Harris in the White House, there may be some slight tightening of legislation regarding investor protection, but it is unlikely to have a significant impact on the industry’s operations.
There may be a significant distinction in the way each entity would engage with the banking industry. It is possible that Trump may lean towards reducing restrictions, but this will largely be influenced by the individuals he appoints. It is anticipated that he will rely on his bank regulators to make decisions in this regard. On the other hand, Harris is expected to take a more cautious approach in this area.
