On May 9, 2023, and on several other occasions, we discussed the importance of the US elections for cryptocurrency investors. This point, which we have emphasized at every opportunity, is now becoming a reality not only in the US but worldwide. So, how should we interpret recent events from this perspective?
Cryptocurrencies and US Elections
Presidential candidates like DeSantis, Robert F. Kennedy, and Ted Cruz have taken steps to win the hearts of crypto investors. Last year’s statements about crypto provided entertainment and motivation amid dull markets. Trump’s NFTs were quite entertaining.
At that time, we wrote the following:
“All these issues will be much better understood when the heat of the election is felt next year. As people see cryptocurrencies becoming part of politicians’ promises, the groundwork for the next bull season may already be set. Most importantly, as mentioned above, is the possibility of limiting the strict rules of the Democrats currently in power.”
November Elections and Today
Today, exactly what we mentioned in the first section is happening. Trump openly promises freedom in crypto. What about the Democrats, whose election results are at risk? The latest crypto-friendly law passed with votes from both Democrats and Republicans. It went to Biden. Now Biden is about to refrain from vetoing the bill, which even senior members of his party support.
More importantly, in an environment where every vote has become valuable, crypto investors do not want to hand over their votes to Trump. The 21st Century Crypto Act vote on Thursday will likely receive bipartisan support again. And probably for this reason, the SEC is making a 180-degree turn on the ETH ETF issue as the shadow of the November elections looms over us.
In South Korea, parties with crypto-friendly rhetoric won both local and parliamentary elections. In the US, many states are shaky for the Democrats. Biden’s stance will be influential for many young crypto investors’ voting preferences.
So, let’s draw a picture of the days approaching November from today:
“As the November elections approach, we may see Biden making more moderate statements about crypto. Ambitious promises on taxation would not be surprising. However, Trump might make much more exciting promises to retain this voting bloc. Maybe symbolic figures on crypto taxes? Beyond that, he could announce incentives for crypto companies, claiming the current US administration has stifled innovation. As the bargaining heats up, what more will Biden do?”
Time will tell all these things.
