Cryptocurrency experts downplayed the possible impact of the November presidential election on the market in the Lion City, despite the fact that former President Donald Trump is regarded as more crypto-friendly.
"Between Vice President Kamala Harris and Trump, Trump is certainly the favorite from a cryptocurrency perspective," said Charles Hoskinson, co-founder of the Ethereum blockchain on the sidelines of TOKEN2049 in Singapore, one of the world's largest annual crypto conferences.
In July, the former president was a keynote speaker at the Bitcoin Conference in Nashville, where he guaranteed that the federal government would never sell its bitcoin holdings and hinted at a plan to make the United States the "crypto capital of the planet."
Despite the potential impact of the U.S. presidential election on cryptocurrency regulations, global adoption of digital assets continues to surge. Recent data from Chainalysis shows that cryptocurrency adoption in emerging markets has outpaced that of developed nations, with countries like Vietnam, India, and Pakistan leading the charge. This trend suggests that regardless of U.S. policy changes, the global crypto ecosystem is likely to maintain its growth trajectory.
"But the reality is, regardless of whether the United States is pro-crypto or not, the world is moving on," Hoskinson continued, noting that governments around the world, from Singapore to the European Union, have implemented legal frameworks.
"As an American, it would be nice to see our country get back into the race and build things, but regardless, it's not going to change the reality that the world will be decentralized," Hoskinson told reporters.
Anthony Scaramucci, founder and managing partner of SkyBridge Capital, a worldwide alternative investment firm, stated that if Harris were to win the election, her approach to cryptocurrency regulation would be basically similar to Trump.
"I think you'll start to see her flesh out her economic policies and where she stands on cryptocurrency regulation and I'm very optimistic," he explained.
Scaramucci, who has endorsed Harris in the campaign, also noted that while Trump has shown support for cryptocurrency, "it's hard to know which direction he's going to go" in office due to his unpredictable nature.
The cryptocurrency industry has been closely watching the development of central bank digital currencies (CBDCs) worldwide. China's digital yuan has already seen widespread trials, while the European Central Bank is pushing forward with its digital euro project. These developments highlight the growing importance of digital currencies in the global financial landscape, potentially influencing the stance of U.S. presidential candidates on crypto-related policies.
The Trump family has lately established a new cryptocurrency initiative called World Liberty Financial. Goals given by project participants indicate that it will resemble a crypto banking platform.
Meanwhile, Jeremy Allaire, CEO of digital currency business Circle, stated that bitcoin regulation will not become a partisan issue in the upcoming US election cycle, citing Congress' recent support for the industry.
"No matter who wins the White House, Congress itself is set to act, and there's really good work that's being done from both sides of the political spectrum," Allaire told CNN's "Street Signs Asia." "The reason for that is that these are technologies that the United States needs to compete and win in."
Nonetheless, cryptocurrency people and corporations have contributed more than $190 million to various politicians and PACs ahead of the election, according to Federal Election Commission data collated by crypto market and blockchain analyst James Delmore.
Delmore stated that while spending has been more evenly distributed between the two parties than in prior cycles, more money has gone to Republican candidates and anti-Democratic PACs this season.
The increasing involvement of traditional financial institutions in the cryptocurrency space adds another layer of complexity to the political landscape. Major banks and investment firms have been expanding their crypto offerings, with some even launching their own digital asset custody services. This mainstream adoption could potentially influence the stance of political candidates, as they consider the economic implications of supporting or opposing cryptocurrency-friendly policies.
Arthur Hayes, a well-known crypto trader and former CEO of the BitMEX cryptocurrency exchange, disputed the notion that US politics will influence worldwide crypto markets.
"I also don't think it's that important. Bitcoin has risen from nothing to its current value, despite the lack of clear restrictions and government approval. So, why do we need it now? It's irrelevant," Hayes stated.
Environmental concerns surrounding cryptocurrency mining have also emerged as a key issue in the political discourse. As countries worldwide set ambitious climate goals, the energy consumption of proof-of-work cryptocurrencies like Bitcoin has come under scrutiny. This debate could potentially shape the crypto policies of presidential candidates, as they balance the economic potential of digital assets with environmental considerations.
