The crypto community is calling for a clearer stance and more actionable policies from Democratic presidential candidate Kamala Harris, according to US investment bank Bernstein.
Clearer Stance Toward Digital Assets Expected From Harris
In a memo shared with clients on September 23, 2024, analysts at Bernstein highlighted several reasons for the brief rally witnessed in digital assets over the weekend.
One of the reasons is the prospect of bipartisan support for the crypto-economy. At a Wall Street fundraiser over the weekend, Harris remarked that her regime will “encourage innovative technologies like AI and digital assets while protecting consumers and investors.”
Notably, this was the first time Harris used the word digital assets in her speeches. Bernstein analysts wrote:
This is obviously in contrast to Trump’s overt ‘America as crypto capital’ stance with specific policy promises — friendly SEC chair, bitcoin national stockpile, support for Bitcoin mining in America, stablecoins regulation, etc. Regardless, the crypto community did feel some relief with both candidates signaling support.
However, the crypto community wants concrete steps and follow-through from the Harris camp before reconsidering its political stance. The Democrats face a significant challenge in swaying the community away from pro-crypto Republican candidate Donald Trump, especially as the Biden administration has been criticized for targeting the emerging industry.
For instance, in July 2024, Democratic US Senator Elizabeth Warren received support from Wall Street banks for her legislation that mandated digital asset miners, validators, and wallet providers to enforce Know-Your-Customer (KYC) policies.
Crypto Sentiment Likely Stronger Under Trump Presidency: Bernstein
Bernstein adds that a win for Trump would likely pave the way for a stronger sentiment about digital assets in the US. The country has grappled with ambiguous digital asset regulations for years, forcing many businesses to relocate to countries with more mature regulatory frameworks. The memo mentions:
We continue to believe, the crypto market sentiment under a Trump win would be stronger, since it would indicate a fresh policy start and likely broader regulatory support for DeFi/asset tokenization/NFTs, beyond bitcoin.
In recent news, Trump was seen using Bitcoin (BTC) to pay for hamburgers at a New York City bar ahead of a campaign rally. It’s worth highlighting that Trump hasn’t always been pro-crypto. Only in the lead-up to the 2024 presidential elections did the former US President transform from a crypto-skeptic to a staunch supporter.
Although most pundits expect a Trump win to be more beneficial for the digital assets market, some posit that Bitcoin’s long-term outlook remains positive regardless of who wins the elections in November. BTC trades at $63,213 at press time, up a marginal 0.7% in the past 24 hours.
