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The 2024 elections are critical for the crypto industry. Crypto companies and investors keep pouring money into the elections, hoping to gain favour from the next administration. Their contributions could set the stage for cryptocurrency innovation, regulation, and adoption.
Donald Trump has already embraced the industry, and Kamala Harris is also warming up to their support. Nearly half of all the finance for the federal election has come from crypto investors, and the money is going to both Republicans and Democrats. So, both presidential candidates are benefiting from crypto votes even though it seems Trump is more popular.
Hence, what should you expect from the crypto industry's interests and contributions to the 2024 election? Can it reshape the industry? Could this be the breakthrough the crypto industry has been waiting for? Let's find out.
The Crypto Landscape Amidst Political Uncertainty
Cryptocurrency started as a small concept only a few people were interested in. Many people didn't have enough knowledge to invest in it, and some were scared for the safety of their digital assets. Still, today, due to its decentralised nature, accessibility, and potential for high returns on investments, it now has so many investors, from individuals to institutions. Investors can now easily access the bestcryptowallet and use it to carry out secure payments for their digital assets, or invest and trade without restrictions.
However, one thing that always draws crypto back is the regulations and policymakers. They can’t seem to find a way around digital currencies, and it has been difficult for them to seamlessly integrate digital currency into an exciting financial system.
Having tried different approaches, the upcoming US elections could be the turning point for the industry. The candidates have different approaches to crypto adoption and regulation, and the industry has backed them up, hoping to see some profound impact after the election.
How the 2024 Elections Could Reshape the Industry
Here are four potent ways the blockchain industry hopes to see improvements after the 2024 elections, and this is why they chose to invest in the election.
Impact on Crypto Regulation and Policy
One area where crypto has always had issues is regulation and policy clarity. There is no cohesive regulatory structure in place, but there is hope that this election will turn things around.
A candidate may push for clearer guidelines and standard regulations for investors and businesses, which will create room for large-scale institutional investment, innovation, and stability in the crypto industry. New rules fostering more accountability and transparency in crypto transactions may also be implemented to protect users.
Increase in Global Competitiveness
The policies set in the US have a great influence on cryptocurrency regulation around the world, so the winner of this election might create a globally competitive crypto market, encouraging exchanges and partnerships with other nations.
Furthermore, as much as people desire to see growth and innovations in the crypto industry, certain regulations may hinder it, and people will take their ideas and innovations to other countries with friendlier policies. So, after the election, maybe a candidate will create a stable environment that appreciates all talent and innovation in the crypto industry.
Changes in Taxation Policies
Another area where crypto needs some adjustment and balancing is the taxation policy, which the industry hopes might be improved after the election. The next government might propose more favorable digital asset capital tax gains, especially for assets held long term, to encourage adoption and investments in crypto.
They could also create tax incentives to encourage startups and businesses to adopt and support blockchain technology. Maybe then, more businesses will start accepting cryptocurrency as a payment method.
Consumer Protection and Education
If, after the 2024 elections, a candidate who values financial literacy wins, he might create opportunities for enlightenment to make people understand the industry better and also hopefully reduce fraud. One thing that holds so many people back is just a lack of knowledge; they don't fully understand the system and fear they might lose their investment at any time due to the unregulated nature of crypto transactions.
However, if the government invests in consumer protection and education, crypto will be more accessible to the general population, and people will be able to make more informed investment decisions.
Will the Industry’s Investment Pay Off in the Forthcoming Election?
There are many speculations regarding this election and crypto backing it. Some people have faith in Trump’s campaign based on his previous presidency, but some also believe Harris is better for the crypto industry due to his tech-savvy background.
However, in reality, everyone will have to wait until the election is over to find out what each candidate has in store for the blockchain industry because we all know politicians make numerous promises during their campaigns and may not fulfil even half of them. After they win, they show their true intentions.
On the other hand, one thing's certain: crypto has firmly supported the presidential campaign with clear intentions, and this is happening for the first time in history. Many lofty promises have been made to them, so the election result will certainly have a positive impact on the future of crypto in the US, even though it may not be as elaborate as the Web3 community hopes.
So, can the 2024 elections reshape the blockchain industry? Yes, and we have looked at some ways in which this can happen. However, as the election approaches, the community is watching in anticipation, eager to see where all this is headed and what will be the impact on digital finance.
Either in innovation, education, taxation, or regulation, the next presidential administration will surely play a vital role in shaping the future of cryptocurrency. Its impact will affect everything from investors' sentiments to market dynamics and even how future administrations will handle the crypto industry. So, this election may just be a political contest, but for digital finance, it is a big moment that could set the pace for a better future.
