The attitude of the two major parties in the United States towards cryptocurrency assets has become friendly. Will the market continue to rise?

As the 2024 U.S. presidential election approaches, the cryptocurrency market, particularly the meme coin sector related to the U.S. election politics, has shown significant growth and activity. Notably, tokens in the PolitiFi sector, such as TRUMP, MAGA, and TRUMP2024, which are closely associated with former President Donald Trump, have performed exceptionally well in the market, especially as Trump has recently taken actions supporting the cryptocurrency field, garnering widespread support from relevant individuals.

Another significant trend related to this is the rapid shift in the Democratic Party and current President Biden's attitude toward cryptocurrencies. In order to succeed in the election, candidates have lowered their guard and embraced areas they previously resisted. The potential and strength of the cryptocurrency sector are forces they cannot afford to overlook.

Trump's and the Republican Party's 180-Degree Turn on Crypto Assets Affects the Market

During Trump's presidency, he expressed clear skepticism and distrust toward cryptocurrencies. In 2019, Trump publicly stated on Twitter that Bitcoin and other cryptocurrencies are "not real money," and their value is "highly volatile, based on air." However, since leaving the White House in 2021, Trump's attitude toward cryptocurrencies has changed significantly. As the 2024 election nears, this shift has become even more pronounced, impacting not only his campaign strategy but also the cryptocurrency market profoundly.

1. Accepting Cryptocurrency Donations:

Republicans are extending a broader invitation to the cryptocurrency community, with Trump's campaign team announcing the acceptance of cryptocurrency donations, allowing supporters to donate through Coinbase Commerce.
This move indicates Trump's more proactive embrace of cryptocurrencies, leveraging their appeal to young voters and tech enthusiasts. Furthermore, at a lavish dinner for his NFT supporters at Mar-a-Lago, Trump emphasized the importance of cryptocurrencies.

2. Policy and Market Impact:

The shift in Trump's team goes beyond mere symbolism. Within the Republican Party, there is also a push for more crypto-friendly policies. Prominent Republican lawmakers like Tom Emmer and Patrick McHenry are drafting legislation aimed at supporting the cryptocurrency industry while limiting the strict regulation of the Securities and Exchange Commission (SEC). Additionally, Trump's supporters, such as Vivek Ramaswamy and Ron DeSantis, have also promised to implement crypto-friendly policies during their campaigns.

These series of initiatives suggest that if Trump is re-elected, he may promote a range of policies favorable to the cryptocurrency industry. Such policies could include appointing more open and supportive regulators for cryptocurrencies, like former Coinbase Chief Legal Officer Brian Brooks or current SEC Commissioner Hester Peirce. These regulators might adopt more lenient regulatory measures to foster the development and innovation of the cryptocurrency industry.

3. Political Strategy and Voter Impact:

Trump's support for cryptocurrencies is not only a policy shift but also part of his campaign strategy. As the election season approaches, Trump is using cryptocurrencies as a weapon to attack the Biden administration, accusing the current government of adopting a hostile stance toward the cryptocurrency industry. SEC Chairman Gary Gensler has conducted strict enforcement actions against several cryptocurrency companies during the Biden administration, further angering the cryptocurrency community.
At the same time, Trump's strategy reflects the influence of cryptocurrencies among voters. A survey shows that in six key swing states, over 20% of voters consider cryptocurrencies an important issue. Another national survey indicates that among cryptocurrency owners, 51% support Trump, while 41% support Biden. This political divide suggests that the influence of cryptocurrencies among voters is gradually increasing, becoming an important topic in the campaign.

Under Trump's Aggressive Offensive, Biden and the Democratic Party's Crypto Policies and Attitudes Appear Passive

Trump has treated the cryptocurrency sector as a new weapon against Biden. The Biden administration has previously taken a cautious stance on cryptocurrencies, emphasizing consumer protection and financial system stability while being concerned about environmental impacts. Given the large number of users in the cryptocurrency sector, Biden and the Democrats cannot afford to lose this portion of the electorate. Therefore, they now have to follow up on this and have shown a hint of goodwill toward the cryptocurrency sector.

In response to Trump's proactive actions in the cryptocurrency field, President Biden and the Democrats have quickly adjusted their attitudes and policies regarding cryptocurrencies, as evidenced by a series of recent initiatives that show the Biden administration's positive shift in cryptocurrency policy.

1. Executive Orders and Regulatory Framework:

In 2022, Biden issued an important executive order directing multiple federal agencies to coordinate the development of digital asset policies. This order emphasized the risks posed by the rapid development of the cryptocurrency market, such as financial stability issues, data privacy and security concerns, and environmental impacts. The Biden administration recognizes the potential risks and opportunities of digital assets and seeks to establish a comprehensive regulatory framework to ensure market stability and transparency.
To protect consumers and the stability of the financial system, the Biden administration has strengthened regulations on cryptocurrency trading platforms and service providers, ensuring these entities comply with appropriate regulations and oversight. Additionally, the Biden administration is also concerned about the environmental impact of cryptocurrency mining and is exploring ways to reduce carbon footprints while supporting technological innovation.

2. Support for the FIT21 Crypto Bill:

The Biden administration announced that if the FIT21 crypto bill is passed, it will not veto the bill and called on Congress to collaborate on a "comprehensive and balanced regulatory framework for digital assets." This statement indicates that the Biden administration supports the development of the cryptocurrency market while maintaining strict regulation.

3. Young Voter Strategy:

To gain the support of young voters, the Biden campaign plans to hire meme managers, attempting to connect with Gen Z voters through managing social media content and meme pages. This strategy shows that the Biden administration recognizes the importance of cryptocurrencies and digital culture in elections and hopes to enhance its electoral support through interaction with young voters.

4. Internal Disagreements and Coordination:

Although the Biden administration has generally adopted a more cautious and pragmatic approach to cryptocurrencies, there are differing opinions within. Some Democratic lawmakers, such as Senator Elizabeth Warren, hold a more skeptical and cautious view of cryptocurrencies, emphasizing their potential risks to consumers and the financial system. However, another group of Democratic lawmakers supports more crypto-friendly policies, believing that this would help promote financial innovation and economic growth.

U.S. Policies Play a Key Role in the Direction of the Crypto Market, with Greater Market Impact After the Election

As the election season approaches, the competition between Biden and Trump over cryptocurrency policies showcases the increasingly close ties between politics and financial markets. Both candidates hope to embrace cryptocurrencies to gain electoral support in this sector, and this strategy has had a profound impact on the development of the cryptocurrency market. The shifts in cryptocurrency policies by Trump and Biden have quickly elicited market reactions. Notably, PolitiFi tokens, such as MAGA coin, have surged in value by approximately 400% over the past month. This phenomenon reflects the market's sensitivity to political events and their influence on market dynamics.
The activity in the cryptocurrency market not only demonstrates investors' heightened attention to political events but also reflects the unique market mechanisms and potential of cryptocurrencies as a new asset class. PolitiFi tokens provide investors with a new way to invest and express political positions by combining the seriousness of political activities with the humor of meme culture.
In the context of the 2024 U.S. presidential election, the shifts in cryptocurrency policies by Trump and Biden illustrate the increasingly close ties between politics and financial markets. Both candidates aim to embrace cryptocurrencies to gain electoral support in this area, and this strategy has had a profound impact on the development of the cryptocurrency market. For investors and market observers, paying attention to the evolution of this trend will help understand the future direction and potential opportunities in the cryptocurrency market.