2024 has been quite a year for the crypto universe: in addition to the considerable advance in the prices of the biggest projects and the market value of the asset class as a whole, we have also seen a series of ETFs in Bitcoin, Ethereum and Solana (this one in Brazil) become a reality, not to mention the discussion of other possibilities as well.
Still, there is a big event in 2024 that could influence progress.
That event is the US presidential election, which is scheduled to take place in early November this year.
Why does the US election landscape matter?
The US is both the largest economy on the planet and the most important financial market in existence. Changes that occur in Uncle Sam's land end up impacting the rest of the world in a more significant way than when they occur in smaller markets.
This year, in particular, the subject of cryptocurrencies is being discussed a lot and it is worth keeping an eye on the specific plans of the two candidates because, even if you haven't seen it, both have already taken a position on the subject.
Trump's proposals for the crypto universe
Candidate Donald Trump, in his campaign seeking a second term in the White House, has been getting very close to the crypto universe in his speeches. To give you an idea, the candidate has even accepted campaign donations in crypto assets and recently participated in the Bitcoin 2024 conference.
There are basically two direct involvements that are linked to the campaign: firstly, a DeFi project that is about to be announced and already has a Telegram channel that talks about this information and, secondly, impacting the American (and global) economy more broadly, there is a plan for the US to have a strategic reserve of Bitcoins.
While the first plan speaks volumes about a more personal and family-oriented initiative, the second aspect is more comprehensive, because it could mean a change in how Bitcoin is viewed globally. The central idea of this plan is that the US government would have custody of not only oil and gold reserves, but also Bitcoin, along the lines of what was done by the government of El Salvador.
Another point mentioned by Trump and still connected to the background is that, in some way, a strategic reserve in Bitcoin could equalize the American public debt - which has increased substantially in recent years and recently exceeded US$35 trillion.
Harris's plans for the crypto space
Kamala Harris' campaign's approach to the crypto universe is more recent and a little more timid: it basically involves parliamentary activity on one side and supporters not directly related to her campaign on the other.
The first of these two sides is directly related to the plans that have already been put into practice by the Biden administration, in terms of regulating actions taken within the crypto market. This action can be seen as timid because, in the end, it would only be the continuation of what has already been observed and, in addition, it will rely on articulators who have already positioned themselves in a reasonably skeptical manner regarding this market. One of these figures is Brian Nelson, deputy attorney general who was responsible for the area of financial intelligence and supervision of terrorist financing at the US Treasury, who shows his concern regarding cryptocurrencies being a "potential money laundering problem".
Even in this scenario, some entrepreneurs in the crypto universe have approached Harris' campaign: in an initiative known as Crypto4Harris, which includes people like billionaire Mark Cuban and Wall Street financier Anthony Scaramucci, discussions have been held with the candidate's campaign seeking to extract from her plans for regulating the sector - and suggesting ideas in this field.
In addition, Harris' campaign has also been meeting with relevant companies in the crypto universe. And, as another relevant point, we have the fact that a campaign advisor said in no uncertain terms: if elected, Kamala will support public policies that support the development and growth of new technologies such as the crypto industry.
Regulatory advances must continue
It is worth noting that, regardless of who wins the US presidential elections in 2024, regulatory advancement in the crypto asset market should continue.
We have already witnessed the approval of Bitcoin ETFs, and the trend is for new products of this type to be launched, expanding access for institutional investors.
Furthermore, major players in the traditional market are increasingly integrating crypto assets into their strategies, which reinforces the trend towards increased adoption and regulation in the sector.
Therefore, even with an uncertain political scenario, the expectation is that the crypto market will continue to gain strength and legitimacy through new regulatory advances and the adoption of traditional institutions.
What conclusions can we draw from all this?
While Trump presents a more direct initiative, although little explained in legal terms, Harris approaches the crypto universe in a way that is a little more linked to regulatory paths, suggesting that she will continue what is discussed in the current Biden government.
Trump's proposed actions (mainly the US having a strategic reserve in Bitcoins) seem to have more short-term effects than Harris's (continuing to regulate the market). In any case, it is in the implementation of these actions that we will see the practical results, not in the speeches (no matter how enthusiastic they may be).
In addition to all these possibilities brought by both, we have a very important message: the largest economy on the planet has shown that the crypto industry is on the agenda. In other American election campaigns, this topic was not even considered for discussion.
Another very interesting (and unprecedented) point is the fact that non-partisan donations to pro-crypto candidates reached US$119 million in 2024 and, this year, the share of pro-crypto donations represents almost half of all donations made to date - 48% of the US$248 million donated to campaigns this year came precisely from these people and companies, according to the PublicCitizen website.
Whether through Harris' regulation, Trump's strategic reserve, or even non-partisan donations that seek to elect pro-crypto candidates, one thing we are certain of even before the US elections take place in 2024: the crypto universe has entered the field of discussion and will never leave.
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Image available at Freepik
