Recent comments from Brian Armstrong, CEO of Coinbase, highlight the significant crypto’s political shift that is taking place. He suggests that the next U.S. administration, regardless of which party wins, will likely support the crypto industry. This emphasizes the sector’s expanding influence within the political arena.
Historically, the crypto sector has faced strict regulation by the U.S. Securities and Exchange Commission (SEC), making it challenging for the industry to thrive. However, growing support from Wall Street and endorsements from influential figures such as Elon Musk have thrust crypto into the political spotlight. This crypto’s political shift has made it a heavily speculated topic among investors as the November elections approach.
Pro-Crypto PACs Gain Momentum
This election cycle has seen the rise of pro-crypto super political action committees (PACs), such as Fairshake, Defend American Jobs, and Protect Progress. These groups have raised over $230 million to support candidates who favor crypto-friendly policies. This financial support highlights the industry’s efforts to influence political outcomes.
Both major political parties are starting to recognize crypto’s growing importance. “(Crypto) advocates are making their voices heard as an important voting bloc. Politicians on both sides of the aisle have taken notice, and there is growing momentum to pass comprehensive crypto legislation,” Armstrong commented, while representing Coinbase. This could lead to more favorable legislation and regulations in the near future.
Republican candidate Donald Trump has promised to build a “stockpile” of bitcoin if elected, which could benefit the industry. Meanwhile, Democratic Vice President Kamala Harris’s team is reportedly working to improve relations with crypto companies, potentially leading to a more favorable regulatory approach. There is speculation that she would take a softer stance than President Biden.
Positive Impact of Supreme Court Ruling
Recently, the U.S. Supreme Court overturned a doctrine known as “Chevron deference.” This doctrine had given federal agencies broad authority to interpret laws. The Court’s decision means that courts will now play a larger role in interpreting laws, which could reduce regulatory pressures on industries, including crypto.
Coinbase’s Armstrong views this ruling positively, as it might lessen the regulatory challenges that crypto companies face. The decision could help ease some of the difficulties that Coinbase and others have experienced with the SEC. The company’s recent move to add former U.S. Solicitor General Paul Clement to its board reflects its strategic approach to these changes.
Better Regulations as a Result
The shift in the political and legal landscape could have a big impact on the crypto industry. A more favorable regulatory environment post-elections could attract a new wave of investors, even those who have been previously hesitant. As these changes unfold, we’ll keep an eye on these developments and their effects on the crypto industry.
Disclosures: Not investment advice. The Author, Sarson Funds, Inc. and its affiliated managers may hold positions in the projects mentioned. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at [email protected].
