The US election has a profound impact on the crypto industry, and the key lies in the new government's policy direction and attitude towards cryptocurrencies. Each president and the party behind him have different views on cryptocurrencies. The Democratic Party generally tends to strengthen regulation to protect the safety of consumers and the financial system; while the Republican Party is relatively more open, encourages innovation, and gives the crypto industry more room. If a candidate who supports cryptocurrencies wins, it may bring more relaxed policies and promote the booming development of the industry. On the contrary, strict regulation may put pressure on the entire market and even put some projects or exchanges in trouble.
During the election, the market is always sensitive and turbulent, and the crypto market is even more so. Investors will pay close attention to the movements of candidates. If the expected winner is crypto-friendly, the market may see a wave of rises; on the contrary, pessimism may trigger a sell-off. In addition, the election will also affect the legislative process of Congress on cryptocurrencies. Whether it is the classification of cryptocurrencies or tax policies, they may change due to the coming of the new government, affecting the future development of the industry.
Finally, it is not just cryptocurrencies, the development of central bank digital currencies (CBDCs) may also change due to the election. The attitude of the government determines whether the United States will accelerate in this regard, and the global crypto market is also watching every move of the United States. The US policy not only affects the domestic situation, but may also change the international competitive landscape. If the US takes the lead, it may continue to dominate the global crypto market; if the regulation is too heavy, other countries may take the opportunity to rise.
