The crypto market and US elections have a significant connection. The outcome of the election can impact crypto regulation, taxation, and mainstream integration. In fact, the crypto industry is already influencing lawmakers at both federal and state levels ¹.
*Crypto-Friendly Candidates*
Candidates like Kamala Harris have expressed support for the crypto industry, with Harris stating that her administration would establish rules for digital assets ¹. This has led to the formation of advocacy groups like Crypto4Harris, which includes notable crypto advocates like Mark Cuban and Anthony Scaramucci.
*Regulatory Landscape*
The regulatory landscape for crypto in the US is still evolving. Currently, various government agencies employ different strategies to regulate the industry, reflecting their unique mandates and objectives ¹. The SEC views many cryptocurrencies as securities, while the CFTC considers certain cryptocurrencies, like Bitcoin and Ethereum, as commodities.
*Key Legislation*
Several bills are underway to create a clear regulatory framework for crypto. The *Financial Innovation and Technology for the 21st Century Act (FIT21)*, which passed in the House, provides a comprehensive framework and gives the CFTC greater regulatory authority ¹. The *Responsible Financial Innovation Act* and *Digital Asset Anti-Money Laundering Act* are alternative approaches focusing on consumer protection and combating illicit finance.
*Election Impact*
The election outcome will significantly impact the crypto market. A crypto-friendly administration could lead to more favorable regulations, while a stricter approach could hinder innovation ¹. The industry's influence on the election is evident, with crypto-backed super PACs supporting candidates and lobbying for favorable policies.
Overall, the connection between the crypto market and US elections is complex and multifaceted. The outcome of the election will shape the future of the crypto industry, and the industry's influence on the election will continue to grow.