The U.S. presidential election is just 62 days away.
In the meantime, the crypto world stands at a crossroads.
The contrasting visions between the Democratic and Republican tickets could define the near-term future of this rapidly evolving sector.
On one side, Vice President Kamala Harris and her running mate Tim Walz advocate for robust regulations, consumer protections and environmental sustainability.
VP Harris recently announced plans to enact a 45% capital gains tax on gains worth more than $1 million. And a 25% tax on unrealized capital gains for individuals with more than $100 million in wealth.
These policies aim at addressing wealth inequality and ensuring fair taxation.
And they could significantly change the crypto landscape.
On one hand, such measures could slow down speculative investment and innovation.
But they could also stabilize the market by mitigating extreme volatility and fraud risks.
Meanwhile, former President Donald Trump and JD Vance champion a bold embrace of decentralized finance and blockchain innovation.
This signals a potential shift toward more mainstream acceptance and integration of Bitcoin into national financial strategies.
They are campaigning on a promise of a more favorable environment to decentralized initiatives. This could potentially boost decentralized infrastructure, or DePIN, protocols, which we talked about before.
This approach is meant to foster innovation and growth within the crypto sector.
So, today, let’s look at a few ways I see the two differing approaches could influence how U.S. users and companies interact with … and advance … crypto over the next few years.
At Long Last, We Could See Blockchain Adoption
Blockchain technology holds enormous potential for improving supply chain transparency and efficiency.
Trump’s promise for a more favorable federal approach to crypto could lead to an uptick in private companies utilizing blockchain tech to drive competitiveness and economic growth.
Conversely, should Harris win, Democrats may focus instead on using the blockchain to enhance supply chain ethics and sustainability.
That’s because crypto mining is currently fraught with concerns about energy consumption.
Energy Consumption: A Fracturing Issue in Crypto Mining
In keeping with party priorities, a Harris/Walz victory could lead to a push for more sustainable practices for crypto mining.
This could include regulations aimed at sustainability or the adoption of renewable energy sources in mining operations.
A Trump/Vance victory would likely see energy concerns contextualized to support economic goals. We could even see less restrictive energy-use policies to make way for more crypto innovation.
That said, both approaches face significant legal and regulatory challenges.
The Regulatory Landscape: A Crucial Factor for Crypto Growth
When it comes to their campaigns’ stance on crypto regulation, both teams have kept to their respective party lines.
Under a Trump presidency, Republicans would likely advocate for lighter regulations to foster innovation and growth within the crypto sector.
This would be a boon for the sector. But some fear that consumer protections may be insufficient to cover the nuances and differences of crypto.
A Harris presidency would likely see a push for stricter regulatory standards to prevent fraud and protect consumers. This could come at the expense of growth.
This divide may seem too wide to bridge. Which is a concern every crypto user should have.
The regulatory landscape is crucial for crypto growth.
And, as we’ve seen, murky and ever-changing regulations make it hard for retail and institutional users alike to go all-in on crypto.
That will need to be changed if the U.S. hopes to remain relevant in the crypto conversation. That means we’ll need to see bipartisan efforts to craft new crypto regulations.
That may sound like a fairytale, especially in the lead up to an election. But U.S. lawmakers have heard the call for more clarity around crypto and have responded.
In May 2024, the U.S. House of Representatives passed the “Financial Innovation and Technology for the 21st Century Act,” or FIT21, with support from both sides of the aisle.
FIT21 aims to provide regulatory clarity by defining the roles of the SEC and CFTC when it comes to oversight of crypto projects and consumer protection while fostering innovation.
This collaborative approach could be vital to ensuring fair market practices and promoting growth in the crypto sector.
It’s a small start. And FIT21 still needs to pass Congress before it can be signed into law.
But it is an important development, nonetheless.
That’s because it tells me that broad support for crypto is making itself known to U.S. lawmakers.
The people are speaking.
And across party lines, the call for more and easier access to blockchain technology, DeFi opportunities and to the crypto markets as a whole is growing louder.
That support won’t disappear after the election.
Whoever ends up in the White House will need to take crypto seriously.
The decisions made by the next administration will undoubtedly shape the future of crypto and decentralized technologies for years to come.
This makes the Nov. 5 election a crucial event for investors, innovators and anyone interested in the future of technology.
As an investor, now is the time to look for opportunities that should do well no matter what happens in November.
Crypto coins like Kaspa (KAS, Not Yet Rated) could gain an edge in this environment.
KAS minimizes energy consumption compared to other proof-of-work systems, which tend to be more energy-intensive.
Decentralized identity solutions, also called DID projects, could also gain traction. These solutions use blockchain tech to give crypto users control over their personal information.
Given the Democrats’ commitment to privacy, a Harris administration will likely support technologies that enable people to manage their identities securely and independently.
By using blockchain technology to do so, it would ensure the cornerstones of crypto — decentralization and trustlessness — are still upheld.
And given the Republicans’ commitment to individualism and personal responsibility, it would be reasonable to expect DID projects to gain popularity under a Trump administration, as well.
Savvy investors should keep an eye out for similar, bipartisan opportunities in Weiss Crypto Daily and our other publications.
Best,
Mark Gough
P.S. Beyond crypto, another winning election issue is AI.
Last year alone, AI investments minted half-a-million new millionaires — more than 1,300 each day. And that was just in America!
Right now, everyone is asking what the “next Nvidia” is. And not only has our top tech expert identified the next superstar AI investment, but he’s also getting ready to reveal his research this coming Tuesday, Sept. 10 at 2 p.m. Eastern.
Save your seat today so you can see what the man who first recommended Nvidia at 80 cents (split-adjusted) is targeting next.
