David Edwards
After years of regulatory contention with President Joe Biden’s administration, the U.S. cryptocurrency industry is cautiously optimistic about a more supportive stance from Washington, regardless of the upcoming election results. Top crypto asset managers like Bitwise and Canary Capital are positioning themselves for new product launches, anticipating a friendlier regulatory landscape, while companies like Ripple are planning an increased push for supportive legislation in the new Congress, according to industry insiders.
Rebecca Rettig, chief legal and policy officer at Polygon Labs, expressed confidence that the upcoming administration will bring a fresh approach to digital assets. “Regardless who wins, there will be a new approach to how we move forward with crypto,” she stated.
Potential Policy Shifts with Trump or Harris
Both presidential candidates have indicated possible shifts in the regulatory approach toward crypto. Republican candidate Donald Trump has pledged to champion the sector as a “crypto president,” while Democratic candidate Kamala Harris has signaled support for digital asset innovation, though she has not yet provided a detailed crypto policy. Industry observers, however, are encouraged by her focus on promoting innovation and protecting crypto investors. Notably, billionaire entrepreneur and crypto advocate Mark Cuban, a vocal critic of the current administration’s crackdown, expressed optimism about a Harris administration, calling her commitment to crypto protections “important.”
SEC Chair Gary Gensler, a Biden appointee, has been a central figure in the regulatory pressure on the crypto industry, enforcing numerous actions against companies such as Coinbase and Kraken for alleged securities law violations. While Trump has vowed to remove Gensler, Harris has not indicated any intentions to replace him. Gensler’s term is set to end in 2026, and his stance remains unchanged, underscoring his concerns about investor risk and market volatility.
Big Crypto Backing and Legislative Goals
This election cycle has seen crypto industry players investing heavily in pro-crypto candidates, with Ripple, Coinbase, and other firms collectively contributing over $119 million to support congressional allies. Prominent Republican crypto supporters include Trump donor and Gemini co-founder Cameron Winklevoss, while Ripple chairman Chris Larsen has backed Harris’s super PAC, reflecting a bipartisan approach by the industry.
A key legislative goal is advancing stablecoins—digital assets pegged to the U.S. dollar—as a mainstream financial tool, a move the industry argues could enhance financial inclusivity. According to Ripple’s head of U.S. policy, Lauren Belive, the industry’s focus is on backing leaders who will foster innovation in the U.S. economy rather than any particular party.
SEC Pressure and the Path Forward
Progressive lawmakers have also pressured the SEC to maintain its tough stance on crypto. But some within the Democratic National Committee have raised concerns that excessive regulatory scrutiny could alienate voters, adding weight to industry calls for balanced regulation.
As crypto firms bolster their political influence, industry leaders are keenly watching to see if the next administration brings the regulatory clarity and support they believe the industry needs to thrive.
