The stage seems set for the next presidential elections in the United States. The elections, which is just months away, is a rematch between President Joe Biden and former President Donald Trump. While Biden is the official nominee of the Democratic Party, Trump is flying the ticket of the Republican Party. As both presidential hopefuls head towards the elections, experts have continued to analyze what could be the outcome and how it might affect the crypto industry in the U.S.
The crypto industry under the Joe Biden administration
The United States of America, under President Joe Biden, has maintained a tough stance on the crypto industry. On numerous occasions, Biden describes the crypto market as a lawless jungle filled with outright scams and believes it is important to protect U.S. investors from its inherent risks.
Given its pessimistic posture on crypto, Joe Biden, has through numerous government agencies like the SEC and CFTC, imposed strict measures against firms offering crypto trading services. Some of the harsh measures include a heavy 37% tax on short-capital gains, 25% tax on long-term capital gains, and many more. Joe Biden’s major reservation about crypto is its decentralized nature which makes it grossly impossible for governments to monitor private spending.
As such, his administration started taking cogent steps to launch a CBDC, known as the digital dollar. Unlike cryptocurrencies, apex banks in each country control and regulate CBDCS. This means the digital dollar, if launched, will be managed by the Fed. While the currency is still in its development stage, Biden’s major opponent Trump has vowed not to let it happen if elected in November. Likewise, top politicians and crypto advocates in the country like Kennedy Jr and even Ron DeSantis have all spoken against the initiative, describing it as a direct attack against crypto.
Joe Biden & his clampdown on crypto firms
Meanwhile, Joe Biden’s clampdown on the industry also extends to firms offering crypto products. His administration’s efforts to expand the oversight of the SEC to crypto heightened regulatory uncertainty in the country and also propelled some firms to consider other jurisdictions. Fully known as the Securities and Exchange Commission, the SEC, which is empowered to oversee the securities market, identifies crypto products as part of the assets under its purview.
However, amid the harsh regulatory atmosphere in the U.S., the crypto industry has shown resilience. Actors in the industry have formed a united front in the numerous legal battles against the SEC and they have been successful. Last year, the SEC lost its two-year-long lawsuit against Ripple after the court pronounced that XRP is not a security. The SEC also suffered another major setback in its aggressive action against the industry after the U.S. Court of Appeal ordered the review of Grayscale’s Bitcoin ETF application.
This legal milestone triggered the final approval of the first Bitcoin and Ethereum ETF applications in the country. However, the SEC has continued to say its approval of those filings does not mean its stance on crypto has changed.
The outcome of the upcoming U.S. elections to determine the fate of the crypto industry
That being said, as the momentum around the elections gains more ground, analysts believe its outcome will decide the future of the crypto industry in the U.S. Unlike Biden, Trump has demonstrated that he holds a soft spot for Bitcoin and has been supporting the industry in recent months. In May 2024, Trump became the first major U.S. presidential candidate to accept campaign donations in crypto.
Before changing his stance, Trump had been a vocal critic of crypto. In 2021, he went as far as labeling crypto as a scam. However, in the buildup to the November elections, the Republican candidate suddenly announced himself as a new crypto convert. Since embracing crypto, the former U.S. president has been getting the support of major players in the industry. One of those backing his presidential ambition is Elon Musk, a renowned crypto billionaire and CEO of Twitter. Today, the crypto community on Twitter is filled with pro-Trump narratives.
Bottom Line
There is growing optimism that his emergence at the poll could trigger a new dawn in the U.S. crypto industry. To further prove his support for the industry, Trump chose a pro-crypto individual, J.D Vance as his vice presidential candidate. More so, he plans to speak to thousands of crypto enthusiasts at the next Bitcoin conference billed to hold in Nashville on July 27.