Bitrabo Editorial
The cryptocurrency sector is urging Democratic presidential hopeful Kamala Harris to adopt a more defined approach and present clear policies, as noted by Bernstein, a US investment bank.
Harris Expected to Clarify Digital Asset Position
In a report to clients dated September 23, 2024, Bernstein analysts pointed out a few factors contributing to the recent uptick in digital asset prices over the weekend.
A key factor is the potential for bipartisan backing for the crypto economy. At a fundraiser in New York, Harris stated that her administration would “promote innovative technologies such as AI and digital assets, while also safeguarding consumers and investors.”
This marked the first instance of Harris mentioning digital assets in her addresses. Bernstein’s analysts commented:
This clearly contrasts with Trump’s explicit vision of making America the hub for cryptocurrencies, which includes promises such as appointing a pro-crypto SEC chair and supporting Bitcoin mining and stablecoin regulation. However, the crypto community felt a sense of relief with both candidates showing some level of support.
Nevertheless, the crypto sector is seeking definitive actions from Harris before shifting its political allegiance. The Democratic Party will find it tough to draw this community away from pro-crypto candidate Donald Trump, who has garnered criticism towards the Biden administration for its stance on the burgeoning industry.
For example, in July 2024, Democratic Senator Elizabeth Warren gained backing from financial institutions for her proposal requiring digital asset miners, validators, and wallet providers to implement Know-Your-Customer (KYC) regulations.
Trump Presidency May Boost Crypto Sentiment: Bernstein
Bernstein also suggests that a Trump victory could enhance the outlook for digital assets in the U.S. The nation has struggled with unclear digital asset regulations, prompting many companies to move to regions with more established regulations. The report points out:
We maintain that market sentiment for crypto would likely improve under a Trump administration, signaling a new policy direction and expected broader regulatory support for DeFi, asset tokenization, and NFTs, beyond just Bitcoin.
In current events, Trump was reported to have used Bitcoin (BTC) to purchase food at a bar in New York before a rally. It is important to note that Trump previously held a skeptical view of cryptocurrencies, only recently shifting to support them as the 2024 elections approached.
While many analysts believe a Trump presidency would favor the digital asset market, some argue that Bitcoin’s long-term prospects will remain strong, irrespective of the upcoming election results. As of now, BTC is trading at $63,213, reflecting a slight gain of 0.7% in the last 24 hours.