Analysis of the Impact of the U.S. Election on the Crypto Assets Industry

Crypto Assets have become a key issue in the 2024 U.S. elections. This article analyzes the background factors contributing to the increased importance of Crypto Assets, including the erosion of wages due to inflation, challenges to the dollar's status, and the growing interest of voters in encryption. It also explores the differing positions of candidates and the potential impact of the election on the Crypto Assets industry.

Crypto Assets have become an important election issue background.

The significance of Bitcoin to the United States

Demand for hedging against inflation increases

Real wage levels in the United States have seen little significant increase since the mid-1980s, exacerbating the wealth gap. Bitcoin is viewed as a tool against inflation and economic uncertainty, particularly providing the hope of economic independence for the middle class.

In the next 10 years, the U.S. federal budget deficit is expected to average 6.2%-7.8% of GDP. The debt-to-GDP ratio may rise from the current 100% to between 124%-200%. This high level of debt may increase the risk of financial market turbulence, and inflation may become the only way for the government to cope with the crisis.

Strengthen the international influence of the US dollar

Stablecoins have become the focal point of policy discussions, helping to reinforce their international influence as the global reserve currency status of the US dollar gradually weakens. Currently, over 99% of stablecoins are denominated in US dollars. Stablecoins have also become one of the major holders of US Treasury bonds, providing additional liquidity support to the US financial system.

Voter interest in encryption is rising.

About half of potential American voters are more inclined to support candidates who hold a positive attitude towards Crypto Assets. Swing state voters have also shown a significant increase in their attention to Crypto Assets.

The Biden administration's regulatory hunt against encryption companies.

The Biden administration has strengthened regulation of Crypto Assets and filed lawsuits against several large crypto companies. These measures have had a significant impact on the industry.

Crypto Assets enterprise donations play a core role

In 2024, cryptocurrency companies have become one of the major forces in political donations in the United States. This funding not only influences the policies of presidential candidates but also promotes congressional election policies favorable to Crypto Assets.

![HTX Ventures: Comprehensive Analysis of the 2024 U.S. Election, Which Could Be a Turning Point for the Crypto Assets Industry from Strict Regulation to Supporting Innovation](https://img-cdn.gateio.im/webp-social/moments-7a4ea73ee3a5108b82e797b4198f6279.webp01

The Impact of the Election

) Policy propositions of both candidates

Harris

Harris's statements on Crypto Assets policy are relatively limited, only indicating that she will "encourage innovative technology while protecting consumers and investors." She pledged to develop a regulatory framework for encryption to protect Black men's Crypto Assets investments, but lacks clear regulatory details or specific policy positions.

Trump

Trump has shown a strong interest in the digital assets industry, promising to make the United States the "global capital of Crypto Assets and Bitcoin." He supports Bitcoin mining, pledges to protect self-custody rights, and has put forward a series of Crypto Assets policy proposals.

![HTX Ventures: A Comprehensive Analysis of the 2024 U.S. Election, which could be a Turning Point for the Crypto Assets Industry from Strict Regulation to Supporting Innovation]###https://img-cdn.gateio.im/webp-social/moments-66df8c6156a2dafa8f0d8a41ba06124f.webp(

) The situation of "splitting the government" may occur.

It seems that a "divided government" situation is highly likely to occur, where the presidency and the Senate are controlled by different parties. This political situation often leads to policy gridlock.

The SEC leadership is likely to change.

Whether Harris or Trump wins, there may be significant changes in the leadership of the SEC. This could alter the SEC's regulatory stance on Crypto Assets.

![HTX Ventures: Comprehensive Analysis of the 2024 U.S. Election, Which Could Be a Turning Point for the Crypto Assets Industry from Strict Regulation to Supporting Innovation]###https://img-cdn.gateio.im/webp-social/moments-639ba542433c72051076ea9893eb2479.webp(

) Macroeconomic liquidity: fluctuations are inevitable, the degree of QE is a determining factor.

When the Federal Reserve lowers interest rates and global capital liquidity significantly increases, it is often a period when the price of Bitcoin continues to rise. Trump has promised that if elected again, he will significantly lower interest rates, which could drive up the price of Bitcoin and other crypto assets.

![HTX Ventures: Comprehensive Analysis of the 2024 U.S. Election, Possibly a Turning Point from Strict Regulation to Support for Innovation in the Crypto Industry]###https://img-cdn.gateio.im/webp-social/moments-86147a698c7ec9b085caae2a9a3d698b.webp(

) How the election affects Crypto Assets startups

Web3 prediction markets achieve absolute superiority over Web2 competitors

The applications created by Polymarket in the on-chain environment account for 80% of the total betting volume for the U.S. presidential election. Prediction markets are gradually becoming a more widespread financial tool, with their influence extending to various fields such as public opinion, financial hedging, and business decision-making.

![HTX Ventures: Comprehensive Analysis of the 2024 US Election, which could be a turning point for the Crypto Assets industry from strict regulation and suppression to supporting innovation]###https://img-cdn.gateio.im/webp-social/moments-bf6ab97ca4a5d0a6d44285a6dbb3f17a.webp(

)# Predicting the future development direction of the market

Currently, some exchanges have launched prediction tokens for the US elections and related leveraged trading, introducing advanced order features to help users manage risk.

![HTX Ventures: A Comprehensive Analysis of the 2024 US Elections, Which Could Be a Turning Point for the Crypto Assets Industry from Strict Regulation to Support for Innovation]###https://img-cdn.gateio.im/webp-social/moments-7a4cc018e81ac4467782bfb7f65c66ce.webp(

)# Trump's victory means encouraging Crypto Assets companies to incubate and go public in the United States.

The Trump administration may bring about a clearer regulatory framework and a more relaxed regulatory environment, changing the current situation where many Crypto Assets companies are fleeing the United States. Several crypto-related enterprises may go public in the next year or two.

![HTX Ventures: Comprehensive Analysis of the 2024 US Election, which could be a turning point from strict regulation and repression to support for innovation in the Crypto Assets industry]###https://img-cdn.gateio.im/webp-social/moments-0236dbf0874e740b85b5342c137786d2.webp(

)# DeFi and BTCFi will be the first to benefit.

BTC is currently the greatest common denominator between the crypto industry, Wall Street, and the SEC. The innovations of BTCFi will be led by developers, driving a series of groundbreaking applications based on Bitcoin's programmability. The total scale of BTCFi is expected to be more than ten times the current market value of BTC.

![HTX Ventures: A Comprehensive Analysis of the 2024 U.S. Election, Which Could Be a Turning Point for the Crypto Assets Industry from Strict Regulation to Support for Innovation]###https://img-cdn.gateio.im/webp-social/moments-0fc811cd20da18a936fcf93c45460daa.webp(