Is Trump just using crypto voters? Harris isn’t so innocent either

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As someone who has been closely watching political developments and the crypto market, I must say that the recent shifts in the 2024 presidential race have been intriguing. Kamala Harris, with her cautious yet supportive stance on emerging technologies like crypto, seems to be treading a fine line between regulation and growth.

Trump’s proposed crypto strategies seem ideal on the surface – but what hidden conditions could there be? Could it be that Harris’ more subtle strategy offers the pathway to a more secure and intelligent future for cryptocurrencies?

In the closing phase of the 2024 U.S. presidential contest, both Donald Trump and Kamala Harris are intensifying their outreach to an expanding yet frequently undervalued demographic – crypto enthusiasts.

Trump, through the introduction of the World Liberty Financial (WLF) token and proposals for a “Cryptocurrency and Digital Finance Consultative Group,” has emerged as an outspoken advocate for cryptocurrencies and decentralized financial systems.

Meanwhile, Vice President Harris is discreetly sketching out policies that safeguard cryptocurrency investors, with a focus on communities of color, as part of her Opportunity Agenda.

Let’s explore further the proposals of both Trump and Harris regarding cryptocurrencies, compare their views, and understand the implications for voters seeking tighter regulations – and potentially increased crypto holdings.

Table of Contents

Trump’s crypto courtship

Donald Trump has adapted his viewpoint on cryptocurrency in a manner that resonates with a significant voting demographic, a strategic decision aimed at capitalizing on the growing power of the cryptocurrency movement within the United States.

Everything kicked off in May as Trump’s election campaign started accepting cryptocurrency contributions, marking a shift from his previous hesitant opinions. Subsequently, a series of calculated steps were taken to win over the crypto enthusiasts, suggesting he views them as his potential supporters.

By June, Trump publicly threw his support behind Bitcoin miners, expressing his hope that the remaining Bitcoin would be mined “right here in America” – a key message for those concerned about the exodus of mining operations to countries like Russia and Kazakhstan.

However, Trump’s actions didn’t cease; his attendance at the Bitcoin Conference in Nashville towards the end of July signified a significant step in his cryptocurrency initiative.

Speaking to a crowd full of cryptocurrency supporters, Trump pledged to create a national Bitcoin deposit should he win the election – an unparalleled action. Additionally, he declared his intention to dismiss SEC Chair Gary Gensler.

This pledge, received with a thunderous applause, resonated deeply with cryptocurrency voters, as many perceive Gensler as an impediment to the sector’s expansion because of his strong support for regulatory measures that treat digital assets similarly to traditional securities such as stocks and bonds.

In contrast to other candidates who have been hesitant about cryptocurrencies, he distinguished himself by proposing the establishment of a national Bitcoin reserve and promising to assemble a Bitcoin and Crypto Advisory Council, which showcases his forward-thinking approach towards digital currencies in a political landscape.

Besides verbal commitments, Trump has also taken tangible steps to demonstrate his backing for cryptocurrencies. In an unprecedented move, during a campaign visit at Pubkey, a bitcoin-themed bar in New York, Trump made history as the first former U.S. president to engage in a cryptocurrency transaction, purchasing a dozen burgers using Bitcoin.

At the heart of Trump’s cryptocurrency initiatives, you’ll find his own project, named WLF, which debuted in September 2024 as a DeFi platform. Positioned as a digital banking system where users can both borrow and lend funds, as well as invest, WLF aims to attract crypto-supporting voters by providing them with a concrete benefit.

Initially launched with great excitement, the platform’s own cryptocurrency, WLFI, aimed to gather a staggering $300 million at an evaluation of $1.5 billion. However, the project has faced challenges in achieving its lofty objectives, managing to raise only $12.9 million up until now.

As a researcher examining this topic, I find myself questioning the distribution of tokens, as it appears that Donald Trump and his family stand to receive an estimated 75% of the net protocol revenue. This raises concerns about transparency and whether the project primarily serves the needs of its users or if it is more so benefiting the Trump family.

WLF presents itself as non-political, but the timing of its launch and Donald Trump’s significant role suggest that it’s not just about finance; there’s a clear political angle to it too. The project’s ambitious timeline and the disproportionately large financial gains for the Trump family have led to doubts, as progress has been slow and questions have been raised.

Nevertheless, Trump’s backers perceive this venture as an integral component of his larger tale emphasizing self-reliance financially and America’s robust economic might. This aligns seamlessly with his political discourse.

Harris’s cautious approach to crypto

Trump adopts a bold, active strategy to engage the cryptocurrency sector, whereas Harris selects a more cautious and calculated approach.

Currently, Kamala Harris, our Vice President, hasn’t emphasized cryptocurrency as a key focus in her campaign, yet her latest actions hint at an understanding of the rising significance of digital assets and their potential influence on voters.

During a roundtable discussion at the Democratic National Convention in Chicago, Brian Nelson, one of Harris’ top advisors, offered insights into the possible policies she might pursue.

Nelson clarified that Harris plans to advocate for policies that foster the expansion of innovative tech such as cryptocurrency, all while maintaining proper regulation. Although the statement was somewhat unspecific, it represented the initial public position on this topic from Harris’ team.

The subtlety of this strategy became increasingly clear when Harris unveiled her “Opportunity Agenda,” a comprehensive economic proposal designed to enhance financial accessibility.

One key aspect of this agenda is the protection of crypto investors, particularly Black Americans, a demographic where over 20% own or have owned digital assets.

Harris vows to establish a regulatory structure aimed at allowing people to securely utilize the advantages of cryptocurrency while minimizing potential issues such as fraud, extreme price fluctuations, and market deceit.

Nevertheless, although Harris has begun articulating her ideas in writing, her interactions with the cryptocurrency community have been rather challenging, at times.

The ‘Crypto For Harris’ campaign’s virtual town hall, intended to mobilize backing from the cryptocurrency community, unfortunately did not live up to expectations and felt underwhelming.

With little engagement and Harris conspicuously missing, the town hall meeting left notable figures such as Tyler Winklevoss and Jake Brukhman feeling disappointed.

Winklevoss didn’t mince words, referring to it as a “circus-like spectacle,” whereas Brukhman pointed out that the structure lacked the interactive and conversational aspects typical of a town hall meeting.

Instead, the gathering predominantly featured prerecorded addresses by political associates such as Senators Gillibrand and Schiff, giving it an academic or lecture-like atmosphere rather than a casual dialogue.

Although there was an error along the way, Senate Majority Leader Chuck Schumer, a significant Democratic figure, made every effort to bridge the divide, unexpectedly becoming a supportive figure for cryptocurrency. Schumer stated that crypto is not going anywhere and intends to advocate for reasonable regulations before the end of the year.

Notably, Harris’ campaign has been discreetly endorsed by influential figures in the cryptocurrency sector. Chris Larsen, a co-founder of Ripple (XRP), has contributed over $1 million worth of XRP to her campaign, expressing faith that she would introduce a more practical stance and defined regulations to the crypto industry – a quality he feels is lacking under the current SEC administration headed by Chairman Gensler.

Although Harris hasn’t been as vocal about cryptocurrency as Trump, she has subtly distanced herself from crypto skeptics within the Democratic Party, like Senator Elizabeth Warren.

Her careful strategy may not elicit thunderous applause like Trump’s proposals to dismiss Gensler or establish a Bitcoin vault, but it provides a roadmap for cryptocurrency that inclines towards consistency and investor security – resonating with voters who desire advancement without turmoil.

What are the odds?

With the 2024 presidential campaign heating up, the chances of each candidate securing victory have seen significant changes over the last few days. It’s possible that the optimistic outlook within the cryptocurrency market could be influencing these shifts.

As reported by a widely recognized wagering competition on Polymarket, gathering approximately $2.06 billion in total bets, Donald Trump is presently estimated to have a 60.1% likelihood of winning, whereas Kamala Harris’ chance stands at 39.8%.

A couple of weeks back, they were extremely close, practically tied, with around 50% each. However, as we moved into mid-September, Kamala Harris had a significant lead, boasting a 52% advantage over Donald Trump’s 46%.

Over the last several days, there have been significant shifts, notably in the cryptocurrency sector. This recent surge of optimism towards digital currencies, especially Bitcoin, appears to be impacting public opinion regarding voting.

Currently, as of October 18th, Bitcoin is nearly touching $70,000 and maintaining a position at approximately $68,700 – its peak in several months. This surge suggests an increasing role that the cryptocurrency market is playing in shaping political decisions.

In the run-up to Election Day, the balance may change based on the crypto market’s performance and any unexpected moves by either campaign. The next few days are crucial as they could shape not only the election outcome but also the future direction of cryptocurrency regulations in the United States.

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2024-10-19 01:03