Upcoming US Election to Shape Future of Crypto Regulation

The
US
political
landscape
has
reshaped
itself
dramatically
in
the
last
few
weeks,
potentially
giving
a
peek
at
the
contours
of
a
new
era
for
crypto
policy
and
regulation
in
this
country.
According
to

dYdX,
President
Joseph
R.
Biden,
who
has
presided
over
a
surprisingly
hostile
administration
in
regard
to
crypto,
has
decided
not
to
seek
the
Democratic
party’s
nomination
for
President.
Instead,
he
has
endorsed
his
Vice
President,
Kamala
Harris,
for
the
position.

The
Short
Term:
Uncertainty
on
Complex
Policy
in
a
Turbulent
Time

Election
years,
especially
presidential
election
years,
are
historically
tough
times
to
get
complicated
legislation
over
the
finish
line
in
Congress.
Members
frequently
return
to
their
home
states
and
districts
to
stay
in
touch
with
constituents,
and
their
records
are
scrutinized
by
voters
and
special
interest
groups.
This
makes
nuanced,
bipartisan
votes
rarer,
as
they
are
hard
to
explain
in
a
soundbite
that
could
impact
a
reelection
campaign.

With
an
issue
like
crypto,
even
if
it
isn’t
as
politically
dangerous
as
topics
like
immigration
or
healthcare,
the
legislation
itself
is
complex
and
requires
significant
staff
time
to
navigate.
The
Senate
Agriculture
Committee,
led
by
a
retiring
Debbie
Stabenow,
has
been
struggling
to
gain
support
for
a
new
market
structure
bill
focused
on





digital
commodities.
This
bill
aims
to
provide
a
clear
regulatory
framework
for
digital
commodities,
which
is
needed
in
the
evolving
crypto
space.
However,
with
the
current
political
climate,
gaining
attention
for
such
a
nuanced
bill
is
challenging.

The
role
of
regulatory
agencies
also
adds
to
the
uncertainty.
The
Securities
Exchange
Commission
(SEC),
under
Gary
Gensler,
has
taken
a
hard
line
on
crypto,
focusing
on
regulation
through
enforcement.
This
approach
has
created
uncertainty
and
hindered
innovation
within
the
industry.
Gensler’s
stance
is
unlikely
to
change
in
the
short
term,
regardless
of
who
wins
the
presidency.
However,
a
new
administration
could
influence
the
overall
direction
of
the
SEC
and
other
regulatory
bodies,
potentially
leading
to
a
more
balanced
approach
to
crypto
regulation.

The
Medium
Term:
Hope
for
A
More
Open-Minded
Executive

Biden’s
choice
not
to
accept
the
Democratic
nomination
means
that
his
administration’s
often
hostile
stance
toward
crypto
is
on
the
way
out.
This
doesn’t
tell
us
exactly
how
the
executive
will
see
the
industry
next
year,
but
it
will
likely
be
different.

Former
President
Trump
has
been
working
hard
to
court
the
crypto
industry
and
crypto-focused
voters
over
the
last
several
months,
with
his
biggest
moment
yet
coming
as
he
addresses
the
Bitcoin
community
in
Nashville.
He
has
been
vocal
about
his
support
but
has
yet
to
articulate
clear
policy
objectives
that
indicate
a
deep
understanding
of
the
technology
and
the
ecosystem.

In
contrast,
Kamala
Harris
does
not
have
a
significant
record
regarding
crypto
and
will
not
be
addressing
the
community
in
Nashville,
despite
being
invited.
Her
relatively
young
age
makes
her
more
likely
to
be
open-minded
toward
blockchain
technology
than
the
current
president.
Crypto
is
developing
into
more
of
a
generational
issue
than
a
strictly
partisan
one.
The
average
age
of
the
71
Democrats
who
voted
for
the
passage
of
the
FIT21
bill
in
the
House
in
May
is
a
decade
younger
than
those
who
voted
against
it.
However,
age
alone
does
not
guarantee
anything,
and
some
personnel
from
the
Biden
administration
could
carry
over.

The
Long
Term:
Generational
Change

The
long-term
outlook
for
crypto
regulation
revolves
around
Congress’s
ability
to
draft
and
pass
legislation
that
will
enable
crypto
and
DeFi
to
thrive
in
the
United
States.
Despite
falling
short
of
passing
meaningful
legislation
this
year,
there
has
been
progress
that
gives
hope
regardless
of
which
candidate
takes
office
next
year.
Trump
has
indicated
support,
and
the
Democrats
have
started
to
moderate
their
stance.

Voters
are
already
making
their
voices
heard
by
moving
pro-crypto
and
open-minded
candidates
forward
in
primary
races
across
the
country.
As
Congress
transitions
to
a
new
generation,
things
are
likely
to
move
in
favor
of
crypto.
The
evolving
US
political
landscape
presents
both
challenges
and
opportunities
for
the
future
of
crypto
regulation.
As
the
Biden
administration
steps
back,
the
potential
for
a
shift
in
policy
under
new
leadership,
whether
from
Harris
or
Trump,
brings
cautious
optimism.
The
immediate
legislative
hurdles
and
regulatory
uncertainties
persist,
but
growing
generational
support
for
crypto
and
evolving
bipartisan
engagement
indicate
a
promising
future.
The
key
to
long-term
success
will
be
Congress’s
ability
to
craft
and
pass
legislation
that
fosters
innovation
while
providing
clear
regulatory
guidance,
ensuring
the
US
remains
a
leader
in
the
rapidly
advancing
world
of
blockchain
and
digital
assets.

Image
source:
Shutterstock