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Key takeaways

• Cryptocurrencies are a significant issue in the 2024 U.S. presidential election for both major candidates—Donald Trump and Kamala Harris.
• Trump’s pro-crypto shift includes plans to replace SEC Chair Gary Gensler, ease crypto regulations, advocate for a national Bitcoin reserve, support self-custody rights for crypto holders, and suggest forming a Presidential Advisory Council on crypto.
• Kamala Harris’s stance is warming up to crypto investors and is taking a friendly approach, signaling a departure from previous Biden-Harris stances.
• Impact on future policies: The election will have a massive impact on the U.S. and global crypto regulatory landscape
• 49% of national voters consider a candidate’s stance on cryptocurrency a crucial factor in their voting decision, and 92% of cryptocurrency owners intend to vote.

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In the United States, close presidential elections have sometimes been won or lost on pivotal issues vital to a large enough group of single-issue voters. While the 1980s centered on economic reforms, ushering in Reaganomics, the 1990s was centered on globalization. By the 2000s-2010s, voters could be said to focus on health and social issues like insurance reform, COVID response, or abortion access.

The defining issues of the day have shaped many national stories. Still, in 2024 America, one major voting block—and by extension, national conversation—that’s impossible to ignore is the economics, business, and policy of cryptocurrencies in American and global life. Over 18 million Americans reportedly hold digital assets, the industry has dramatically increased organized political campaigning, fundraising, and lobbying, and it has more than $100 million to deploy into local and national elections.

Since its inception in 2009, political parties and regulators have largely ignored Bitcoin and other cryptocurrencies – with a significant shift in the last five years. By 2014, initial guidance was being issued. Still, lack of clarity left many Web3 companies unclear on key issues such as token issuance, decentralization, or even which agency had regulatory authority over their industry. 

This confusion led to even the most popular, well-intentioned, and rigorously operated cryptocurrency companies like Consensys and Uniswap facing legal scrutiny. While even generous critics of the SEC might point to controversial cases against top cryptocurrency companies, they would have to admit that clearing the way for BTC and ETH ETFs for public market traders is growing the market dramatically in terms of both volume and net new entrants.

As the 2024 presidential election approaches, Kamala Harris and Donald Trump face unprecedented pressure to articulate clear stances on cryptocurrency. If elected, each candidate’s policies will significantly impact the trajectory of this burgeoning industry in the United States and, consequently, the global financial system. As a key election issue, understanding their stance on cryptocurrencies is not only crucial for the future of the crypto market. 

A recent HarrisX poll reveals that nearly half of U.S. voters support pro-crypto policies, indicating a growing interest in cryptocurrency-friendly regulations. The poll highlights that about 49% of voters consider a positive stance toward digital assets important for political candidates, of whom 92% plan to vote. This aligns with a broader trend of crypto becoming a significant issue in political discussions, especially as the technology continues to integrate into mainstream finance. However, concerns about the risks of crypto regulation still divide voters, suggesting that while support is growing, the debate over regulation remains active.

Donald Trump on Bitcoin: From doubt to advocacy

Donald Trump’s relationship with cryptocurrencies, especially Bitcoin, has practically flipped since his early criticisms. While in office, he famously Tweeted he was “not a fan of Bitcoin and other cryptocurrencies” and that they were “not money” based on “thin air.” He also criticized crypto assets for helping facilitate illegal underground markets, likely based on popular political talking points among both parties. This stance was consistent with his administration’s cautious but generally ”light touch” approach to the growing crypto ecosystem.

In this election season, Trump’s Bitcoin moment is finally here, with a prime-time spot at Bitcoin Nashville’s 2024 conference pledge to pull back aggressive cryptocurrency regulations, establish a National Strategic Bitcoin Reserve, and surging popularity with a Bitcoin maximalist he’s now telling to “Never sell your Bitcoin.” 

Trump’s endorsements from prominent crypto-loving figures like Elon Musk and billionaire crypto entrepreneurs Cameron and Tyler Winklevoss suggest a long-term channel between Silicon Valley and President Trump, likely before the 2024 election season.

Despite Trump’s past criticism, the crypto market reacted positively to his pro-crypto stance, with Bitcoin prices rising after his remarks.

Unofficial: Trump’s Bitcoin & cryptocurrency policy positions

Collected from campaign speeches, Tweets, articles, and interviews, here’s a running list of some of the cryptocurrency policy positions one might expect from the Republican Trump & Vance 2024 ticket, largely leaning pro-crypto and taking a regulation-light position:

Replacing Gary Gensler as head of the SEC

One of Trump’s primary targets for crypto reform is Gary Gensler, the current chair of the Securities and Exchange Commission (SEC), whom he has promised to fire on the first day of assuming office.

Gensler, appointed in 2021, has a term running until June 2026 and is known for his stringent regulatory approach to cryptocurrencies. Alongside Senator Elizabeth Warren, the two have drawn sharp criticism from many in the crypto community. 

Trump’s administration could appoint a new SEC chair who favors a more lenient regulatory environment for banking and cryptocurrencies. This could reduce barriers for crypto businesses and foster innovation, creating an optimistic outlook for the industry’s future. Still, it’s unclear whether any newly incoming appointee will be quick to issue a clear industry policy.

Easing regulations on crypto businesses

Trump has indicated a commitment to reducing regulatory burdens on the cryptocurrency sector. He has pledged to create a more favorable environment for crypto entrepreneurs by streamlining compliance requirements and eliminating unnecessary restrictions. This approach aims to stimulate growth within the industry, encouraging startups and established companies to thrive without the fear of overregulation, and mimics traditional Republican platforms of deregulation.

Establishing a national Bitcoin reserve

One of the most ambitious proposals is to create a national Bitcoin reserve as part of the U.S. strategic reserves currently used to stockpile goods like petroleum. This concept has gained traction among some pro-crypto advocates and policymakers, such as Cynthia Lummis, a Republican senator from Wyoming who is one of the strongest crypto proponents in the Republican party. The senator has gone further and plans to introduce legislation calling for a “strategic Bitcoin reserve” to reduce the United States national debt by buying 1 million BTC over five years.

Bitcoin whale and a strong advocate of Trump, Michael Saylor, has aptly termed this move our “Louisiana purchase moment,” referencing the United States’ purchase of the territory Louisiana from the French First Republic in 1803.

Trump has stated his intention to keep “100% of all the Bitcoin” that the government currently holds or acquires in the future. Some commentators say this could lead to a notable increase in the United States’ influence over cryptocurrency and a solid geopolitical hedge against a rising China or de-dollarization.

Supporting self-custody rights

In his speeches, Trump has emphasized the importance of self-custody for cryptocurrency holders, advocating for the right of individuals to manage their digital assets without excessive government interference. This aligns with the decentralization principles underpinning cryptocurrencies, appealing to the millions of Americans who engage with digital currencies.

Forming a Presidential Advisory Council on crypto

To further solidify his commitment to the crypto industry, Trump has proposed the establishment of a “Bitcoin and Crypto Presidential Advisory Council.” This council would serve as a platform for industry leaders to provide feedback on regulatory matters and help shape policy that supports the growth of cryptocurrencies in the U.S. By involving industry stakeholders directly in the policymaking process, Trump aims to ensure that crypto regulations are crafted by those who understand and appreciate the sector’s potential.

Kamala Harris on crypto

In the lead-up to the Democratic National Convention (DNC), there was uncertainty surrounding Kamala Harris’s and the Democratic Party’s stance on cryptocurrency. Her position appeared to be influenced by the approach of the Biden administration. As we approach the election, Kamala’s stance is evolving. 

During a recent speech at The Economic Club of Pittsburgh, Harris expressed that if elected in November, her administration would prioritize blockchain, AI, and other emerging technologies, emphasizing their importance in shaping the future. Additionally, Kamala Harris indicates a more positive stance toward cryptocurrency than President Joe Biden and sends aides to interact with affluent crypto investors and their Democratic supporters in Congress.

With the election only weeks away as of writing, Harris is focusing her cryptocurrency stance on a key voting block critical to her candidacy: Black men. As part of her campaign, she introduced a broad plan under the platform “Kamala Harris Will Deliver for Black Men,” which includes a general commitment to “support a regulatory framework for cryptocurrency and other digital assets.” However, some crypto-native critics bristled at Kamala’s attempt to cast digital assets as a racial issue by adding, “So Black men who invest in and own these assets are protected.” Noting 20% of US-based Black men are cryptocurrency owners, Kamala’s cryptocurrency directive was just one of multiple policy proposals aimed at this broader voting block.

Democratic Party position on crypto to date

While the broader Democratic party position on cryptocurrencies may be unconsolidated, prominent and outspoken Democratic leaders like Senator Elizabeth Warren, have publicly stated their perspectives. Warren and certain allied regulators have highlighted risks such as fraud, national security, and scams whenever discussing cryptocurrency, which some critics say has emboldened an SEC perceived as hostile to crypto to pursue an aggressive strategy in the space – at least under Biden.

Others, like Rep. Ro Khanna, a prominent progressive voice, support a more favorable approach to digital assets. Rep. Khanna has even called for the Democratic National Committee (DNC) to embrace a forward-looking approach to digital assets and blockchain technology within their party platform.

This split complicates Harris’s potential alignment with President Biden’s administration, which has been perceived as brutal on crypto, especially following the collapse and prosecution of FTX founder Sam Bankman-Fried, which set crypto policy with the SEC Chair Gary Gensler.

This lukewarm approach has led to public warning that she cannot afford to lose the crypto war to Trump, and some democrats have launched “Crypto for Harris” to counter the gains made by Donald Trump donations and votes from crypto enthusiasts could make the difference in key battleground states.

On August 19th, the Democratic Party released its official 2024 platform on the first day of the Democratic National Convention (DNC). It did not mention Bitcoin or cryptocurrency, suggesting continuing current policies or an opportunity to build a more sophisticated strategy after the election. Some expressed that this decision was a missed opportunity to set a new path with the cryptocurrency industry, with mixed reviews from crypto commentators like Adam Cochran, who suggests no mention of plans for a crackdown and might even promise a lighter approach to regulation.

Biden-Harris administration’s evolving stance on cryptocurrency

The Biden-Harris administration’s stance on cryptocurrency has evolved amid growing scrutiny and calls for regulatory clarity. While rumors swirl about increasing taxes on crypto being considered by the Democrats, it’ll be difficult to separate facts from fiction until the party or candidate issues statements on the industry. Based on a mix of Democratic policy to date and engagements by Harris’ campaign, here are the policy prescriptions we’re seeing Democrats pursue:

Cautious regulation

The Biden administration has taken a stricter stance on cryptocurrencies after the crash of FTX, which raised concerns about the trustworthiness of even the “industry darlings” like Sam Bankman-Fried, according to some. This failure led to substantial financial losses for investors—running into the billions— and increased calls for stricter regulations to protect consumers and ensure economic stability. 

Among Democrats, the fallout from FTX has highlighted the urgent need for regulatory oversight in the cryptocurrency sector, prompting discussions about the appropriate regulatory framework. According to the SEC, the administration is focusing on establishing clear guidelines to prevent future crises and restore confidence in the cryptocurrency market.

Engagement with crypto leaders

Vice President Kamala Harris’s campaign team has been actively engaging with key figures in the cryptocurrency industry. At the same time, both media and crypto lobbyists are suggesting Harris is warming up to the industry, likely also recognizing them as a potent voting and fundraising block. Jointly, this outreach suggests a growing recognition of crypto’s importance within the party’s policy agenda.

Harris’s representatives have reportedly contacted influential figures such as billionaire Mark Cuban and executives from major crypto firms. These conversations establish a constructive dialogue and explore opportunities for collaboration between the Harris campaign and the crypto community.

The crypto industry remains hopeful that Harris’s outreach could lead to a more favorable policy environment for digital assets. Figures like Anthony Scaramucci, founder of SkyBridge Capital, have expressed optimism that Harris’s engagement could end stringent regulatory measures and move towards a more balanced approach. 

Consumer protection and financial stability

The Democratic Party’s cautious approach stems from a stated desire to safeguard consumers against potential cryptocurrency risks. High-profile incidents, such as the collapse of the FTX exchange, have amplified concerns about fraud, market manipulation, and the overall stability of the crypto market. Critics would suggest the SEC’s failure to provide policy direction was partly to blame for the industry’s risky ways. 

Prominent Democratic leaders, including Senator Elizabeth Warren and Representative Brad Sherman, have raised alarms about the potential for cryptocurrencies to facilitate illegal activities despite little proof, further complicating the party’s relationship with the industry.

Legislative proposals and regulatory oversight

In response to these concerns, the Democratic Party has proposed several regulatory measures to increase oversight of the crypto industry. Notably, the FIT21 Act seeks to transfer regulatory authority over digital currencies from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), which is perceived as having a lighter regulatory touch. This proposal has garnered support from some Democratic lawmakers, including House Financial Services Chair Patrick McHenry, indicating a potential shift towards a more favorable regulatory environment for crypto businesses.

Crypto is now firmly part of the national conversation

In summary, Donald Trump leans toward a more pro-crypto stance, while Kamala Harris’s position remains undefined, aligning with the broader Democratic Party’s cautious approach.

However, cryptocurrency policies are just one of the many issues America faces. When considering which presidential candidate to support, consider their broader policies and not base your decision solely on a single one.

Regardless of the election outcome, cryptocurrencies have become a vital issue in the 2024 U.S. presidential election, a win for crypto enthusiasts. This demonstrates the growing importance and mainstream adoption of digital assets in the United States, and going forward, pro-crypto presidential candidates are likely to find favor with the public, who increasingly want a new way of doing things, including on financial matters.

As retail investors and crypto beginners, staying informed about these political developments and their potential impact on the crypto market is crucial.

While these positions change quickly and sometimes unpredictably, we’ll do our best to keep this article current until election season ends, so don’t forget to check back!

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Paxful is a neutral platform and does not endorse or support any political party, candidate, or specific policy position discussed in the context of the 2024 U.S. presidential election. The information provided herein reflects ongoing political discussions regarding cryptocurrencies and does not represent the views or opinions of Paxful, its employees, or its affiliates. We encourage our users to stay informed and consider a range of perspectives when engaging with political matters related to cryptocurrencies.