The influence of the cryptocurrency industry has expanded significantly over the past year, and the potential effects of the upcoming presidential election on the market is a major topic of discussion among investors.
Analysts at TD Cowen point out that both Kamala Harris (NYSE:LHX) and Donald Trump are seen as more supportive of the industry than Joe Biden.
Harris is expected to carefully regulate cryptocurrencies, with a focus on investor protection, while Trump may rely on his financial regulators, as cryptocurrencies are not expected to be a major concern in his potential second term.
“We see Kamala Harris as more open to cryptocurrencies and digital assets than Joe Biden, although we don’t consider this a priority and believe the industry may face unfriendly regulators,” TD Cowen analysts reported in a report.
When comparing Trump and Harris, the situation requires careful consideration.
More recently, Trump has presented himself as a supporter of cryptocurrencies while seeking industry support. However, TD Cowen notes that past behavior suggests that this latest support may not lead to more lenient regulatory measures during Trump’s second term.
Bank analysts noted that the cryptocurrency lobby has used the industry’s wealth-generating power to increase political influence as elections approach.
The Biden administration has recently begun discussions with the cryptocurrency industry to consider possible policy approaches. At the same time, Trump has committed to being a ‘crypto president’ and stopped his previous negative statements about the industry.
However, TD Coin analysts advise against confusing campaign promises with the actual implementation of the policy.
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Analysts stressed that “Harris is not like Biden when it comes to cryptocurrencies.”
“We see it as more open to industry and more inclined to endorse policy measures that promote industry expansion.”
However, Harris is also not expected to resist measures aimed at strengthening the protection of crypto investors. This suggests that the SEC will likely retain a significant regulatory role on most cryptocurrencies and exchanges if it takes the lead.
Analysts believe that both Harris and Trump will likely endorse legislation on the structure of the cryptocurrency market if it is approved by Congress. Such legislation may be somewhat more focused on protecting investors under the Harris administration, but not to the extent that it significantly affects industry jobs.
There may be a marked difference in their interactions with the banking sector. Trump may prefer fewer regulations, though that may likely depend on the officials he chooses, as he is expected to be entrusted with banking regulatory matters. Conversely, Harris is expected to approach these matters more cautiously.
This article was written and translated with the help of artificial intelligence and reviewed by an editor. For more details, please refer to our Terms and Conditions.
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