- A Trump win may replace Gensler, easing U.S. crypto regulations and boosting ETFs.
- Harris’ win could extend Gensler’s SEC leadership, continuing strict crypto oversight.
- Election outcomes and Fed rate cuts will shape the future of the U.S. crypto market and regulations.
The upcoming U.S. presidential election, with Donald Trump as the Republican frontrunner and Kamala Harris representing the Democrats after Joe Biden’s exit, serves as a turning point for the crypto market.
The current U.S. Securities and Exchange Commission (SEC), under Gary Gensler’s leadership, has taken a hardline stance on crypto assets, particularly regarding the approval of crypto exchange-traded funds (ETFs). This regulatory approach has affected major crypto exchanges like Binance and Coinbase, both of which are engaged in legal battles with the SEC.
In addition, Bitwise is preparing to launch an XRP ETF following its trust registration in Delaware. This move follows a court ruling earlier this year stating that XRP’s secondary sales are not securities. However, the SEC has until October 7, 2024, to appeal the ruling, leaving the situation uncertain.
The outcome of the upcoming U.S. election could also influence the future of cryptocurrency ETFs, including XRP and others like Solana.
A Donald Trump victory could be a turning point for the U.S. crypto market. Analysts like Eric Balchunas predict that a Trump administration would likely replace Gary Gensler with a more crypto-friendly SEC Chair.
Moreover, Kamala Harris has voiced support for emerging technologies, including cryptocurrency. However, some analysts worry that her win could lead to Gary Gensler’s continuation as SEC Chair, maintaining the regulatory approach seen under the Biden administration.
Read also: Kamala Harris’ Open Support for Crypto & AI, But Stirs Investor Protection Debate
Beyond the election, macroeconomic factors such as potential Federal Reserve interest rate cuts could also affect the crypto market. Lower rates reduce borrowing costs, spurring economic activity and encouraging investors to take on more risk.
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