The cryptocurrency community is seeking a more definitive stance and actionable policies from Democratic presidential candidate Kamala Harris. This call to action has been highlighted by US investment bank Bernstein, which recently shared insights on the matter.
Clearer Stance Toward Digital Assets Expected From Harris
On September 23, 2024, Bernstein analysts sent a memo to clients, explaining the factors behind a brief rally in digital assets over the weekend. One key factor is the potential for bipartisan support for the crypto economy. During a Wall Street fundraiser, Harris stated that her administration would “encourage innovative technologies like AI and digital assets while protecting consumers and investors.”
This marked the first time Harris explicitly mentioned digital assets in her speeches. Bernstein analysts noted:
This is obviously in contrast to Trump’s overt ‘America as crypto capital’ stance with specific policy promises — friendly SEC chair, bitcoin national stockpile, support for Bitcoin mining in America, stablecoins regulation, etc. Regardless, the crypto community did feel some relief with both candidates signaling support.
However, the crypto community is looking for concrete steps and follow-through from Harris before reconsidering its political stance. The Democrats face a significant challenge in swaying the community away from pro-crypto Republican candidate Donald Trump, especially considering the Biden administration’s criticism for targeting the emerging industry.
For instance, in July 2024, Democratic US Senator Elizabeth Warren received support from Wall Street banks for her legislation mandating digital asset miners, validators, and wallet providers to enforce Know-Your-Customer (KYC) policies.
Crypto Sentiment Likely Stronger Under Trump Presidency: Bernstein
Bernstein further adds that a win for Trump would likely result in stronger sentiment regarding digital assets in the US. The country has faced ambiguous digital asset regulations for years, forcing many businesses to relocate to countries with more mature regulatory frameworks. The memo states:
We continue to believe, the crypto market sentiment under a Trump win would be stronger, since it would indicate a fresh policy start and likely broader regulatory support for DeFi/asset tokenization/NFTs, beyond bitcoin.
Recently, Trump was seen using Bitcoin (BTC) to pay for hamburgers at a New York City bar before a campaign rally. It’s important to note that Trump hasn’t always been pro-crypto. Only in the lead-up to the 2024 presidential elections did the former US President shift from a crypto-skeptic to a staunch supporter.
While many pundits expect a Trump victory to be more beneficial for the digital assets market, some believe that Bitcoin’s long-term outlook remains positive regardless of the election outcome in November. As of the latest data, BTC trades at $63,213, reflecting a marginal 0.7% increase in the past 24 hours.
Bitcoin price action remains volatile on the weekly chart, reflecting the ongoing uncertainty and speculative interest in the digital asset market.
