Crypto Assets Become Key Issue in the 2024 US Election

Since the birth of Bitcoin, it has gone through three cycles of U.S. presidential elections and has become one of the key issues in the 2024 election. The voter group that supports the Bitcoin ideology is gradually forming an undeniable force in U.S. politics. Multiple factors have driven the increasing importance of Crypto Assets in elections:

1. Inflation erodes real wages, leading to a demand for anti-inflation tools.
2. The global position of the dollar is facing challenges, and stablecoins have become a new way to strengthen the influence of the dollar.
3. Swing state voters' interest in Crypto Assets has significantly increased.
4. The Biden administration's strict regulation of crypto assets has triggered a backlash in the industry.
5. Cryptocurrency companies' political donations have become an important force.

The Policy Positions of Both Candidates on Crypto Assets

Harris Camp

• The statement is limited, only generally expressing encouragement for innovative technologies while protecting consumers.
• Committed to establishing an encryption regulatory framework to protect Black investors, but lacking specific details.
• Overall continuation of the Biden administration's confrontational stance towards the Crypto Assets industry.

Trump Campaign

• Committed to making the United States the global capital of Crypto Assets and Bitcoin
• Supports Bitcoin mining, protects self-custody rights
• Propose to establish a Bitcoin government reserve and form a Crypto Assets advisory committee.
• Oppose the Federal Reserve's introduction of a digital dollar

Potential Impact of the Election on the Crypto Assets Industry

1. The leadership of the SEC is likely to change, and regulatory policies may turn friendlier.

2. Macro Liquidity: Trump promises to significantly lower interest rates, which may once again drive up Crypto Assets.

3. Improvement of the Crypto Assets Startup Environment:
   • The prediction market is expected to surpass traditional competitors.
   • Crypto Assets companies in the US may open up listing channels.
   • Innovation in the DeFi and BTCFi sectors may accelerate

4. BTCFi Development Prospects:
   • The position of BTC as a base asset is expected to be further solidified.
   • Upgrades like OP_CAT may drive innovation in applications
   • The total scale of BTCFi is expected to reach over 10 times the market value of BTC.

Regardless of the outcome, the 2024 U.S. presidential election will become a potential turning point for the encryption industry, shifting from strict regulation to supporting innovation, and is worth close attention from the industry.