Kamala Harris doesn't care about crypto, and neither does Donald Trump. If you thought Trump was your crypto hero, sorry to disappoint you.
He talks a big game, but recent actions tell a different story. Both Harris and Trump are playing a political game, and crypto is just a pawn in it.
Harris's sudden change in password
About three weeks ago, Harris made a rare statement about cryptocurrency at a fundraiser in New York City. She said:
“We will encourage cutting-edge technologies like AI and digital assets while protecting our consumers and investors.”
That event raised $27 million for her campaign, largely because crypto elites like Ripple, Mark Cuban, and Anthony Scaramucci worked tirelessly to sell her to the industry.
Unsurprisingly, Uniswap founder Hayden Adams also welcomed Harris' statement. But Amanda Wick from Women in Crypto pointed out that it was all talk without any real policy change.
Investors and consumers have heard these clichés time and again, and without any concrete proposals, skepticism is high.
Some Democrats are pushing for stricter regulations, while others want to see cryptocurrencies flourish. Harris is trying to strike a middle ground, appealing to both sides without alienating either.
Meanwhile, money from crypto supporters is still flowing. Ripple co-founder Chris Larsen donated $1 million in XRP tokens to Harris’ campaign just yesterday.
The crypto industry has actually lost a lot of money this election cycle. Over $119 million from crypto-related organizations has been funneled into federal elections.
Trump's Parade
Trump, on the other hand, has been trying to position himself as the “crypto candidate” for some time, promising to make America the crypto capital of the world.
Polls show that younger and more diverse groups are more likely to own cryptocurrencies, and Trump is appealing to this group.
Now let's talk about his big move: World Liberty Financial, a new DeFi project that looks as shady as Trump's other businesses.
The project launched on September 17 in a livestream on X (formerly known as Twitter). World Liberty Financial claims to allow people to lend and borrow cryptocurrency without the intervention of banks.
But of course, the setup process lacks transparency and there are obvious conflicts of interest. World Liberty Financial is not even for the average crypto user.
The platform has a governance token, WLFI, but it is non-transferable and does not offer returns. And remember, only accredited investors (those with a net worth of over $1 million) can participate.
That's a far cry from Trump's claims of helping underserved communities. About 70% of the equity is held by Trump family members and insiders, which tells you how "decentralized" things are.
It’s all about money for Mr. Trump. He got a taste of digital assets with his NFT trading cards in 2022, generating nearly $5 million in sales in a single day. And he wants more.
He has raised more than $30 million from crypto donors this year. And those are just the recorded amounts. He wants the United States to be a leader in crypto, declaring, “If we don’t, China will.”
Trump has also promised to hoard Bitcoin and use government-confiscated Bitcoin as a strategic reserve. “If elected, it will be the policy of my administration to retain 100% of all bitcoins currently held by the government or acquired in the future,” he said.
He has proposed the creation of a "Presidential Advisory Council on Bitcoin and Cryptocurrencies" to shape policy. According to Trump, the council will focus on creating transparent regulations for the cryptocurrency industry.
And of course, he's talking about cutting regulations that he says are stifling innovation. "We're going to cut regulations across a wide range of industries," he said, promising to eliminate 10 regulations for every new one introduced.
He also took aim at regulatory challenges, particularly what he called “Operation Choke Point 2.0,” which he said was keeping crypto companies out of traditional banking. “We’re not going to allow that to happen,” he said.
But Trump’s plan is not without risks. The SEC has cracked down on cryptocurrency projects that blur the line between investments and unregistered securities.
Bottom line: Harris and Trump are both after votes, and neither really cares about the crypto community beyond what it can do for their campaigns. Both candidates are playing the game, and crypto is just another card on the table.
What's worse, they risk turning crypto into a party, which would destroy any chance of clear regulation in the world's largest cryptocurrency market.
