Original Title: “Crypto world hoping for Trump election win”

Author: Jonathan Josephs

Translation: Shenchao TechFlow

While Trump's views on cryptocurrency are very clear, Harris's position is less so.

The cryptocurrency industry is "full of fraud, charlatans, and scammers," one of the top financial regulators in the U.S. told the BBC.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), stated, "Global investors have lost too much money because crypto companies have not followed the laws that their agencies are trying to enforce."

This statement comes in the context of the industry spending millions on political donations in an attempt to influence the outcome of the U.S. elections in November for more favorable regulations.

In addition to the presidential race between Donald Trump and Kamala Harris, all 435 House districts will also be up for reelection, along with 33 of the 100 Senate seats.

The future of cryptocurrency is one of the most discussed technologies globally, and there seems to be a clear divide on this issue between Donald Trump and the outgoing Biden administration.

Trump has promised to make the U.S. the "global cryptocurrency capital" and create a "national strategic Bitcoin reserve" similar to the U.S. government's gold reserves to win the votes of crypto enthusiasts.

Last week, he launched a new crypto company called World Liberty Financial, and although he provided few details, he said, "I think cryptocurrency is one of the things we must do."

This marks a significant turnaround from three years ago when he viewed Bitcoin as "looking like a scam" and a threat to the dollar.

Trump's newfound enthusiasm stands in stark contrast to the Biden administration, of which Harris is the vice president. In recent years, the White House has launched a comprehensive crackdown on crypto companies.

In March, FTX founder and CEO Sam Bankman-Fried was sentenced to 25 years in prison for fraud after stealing billions from global customers, many of whom are still struggling to recover their funds.

Then in April, Binance founder Changpeng Zhao was sentenced to four months in prison, and the company paid a $4.3 billion (£3.2 billion) fine. He admitted to allowing criminals, child abusers, and terrorists to launder money on his platform, a case brought by the U.S. Department of Justice.

The SEC has also filed a lawsuit against Binance. Last year, the financial regulator took a record 46 enforcement actions against companies attempting to profit from this emerging technology.

Sam Bankman-Fried's imprisonment reflects the worst aspects of the crypto industry.

"This is a field that has already developed, and just because they record their crypto assets on a new ledger, they [wrongly] say, 'We think we don't want to comply with time-tested laws,'" Gensler said.

He explained that since the SEC was established, there have been rules requiring companies wishing to raise funds from the public to "share certain information" with them, aimed at protecting investors.

This dates back to 1934, following the infamous Wall Street crash of 1929, which marked the beginning of the Great Depression.

"Cryptocurrency represents only a small part of the U.S. and global capital markets, but it could undermine ordinary investors' trust in capital markets," Gensler said.

Despite supporters arguing that cryptocurrency offers a fast, cheap, and secure way to transfer funds, a survey by the U.S. central bank—the Federal Reserve—found that the number of Americans using cryptocurrency dropped from 12% in 2021 to 7% last year.

Harris has not spoken much about cryptocurrency, but one of her advisors stated last month that she would "support policies that ensure emerging technologies and the industry can continue to develop."

Recent meetings between her team and industry executives aimed to build trust while giving crypto leaders hope that whoever wins in November could usher in a brighter future.

"I cannot emphasize the importance of this enough; it is crucial not just for the U.S. but for the entire world," said Paul Grewal, chief legal officer of cryptocurrency company Coinbase, who attended these meetings.

"The U.S. is not only an important market for cryptocurrency, but the significant technologies around cryptocurrency are also developing here. I think we must realize that the rest of the world is not just sitting quietly waiting for the U.S. to sort out its affairs."

He added that given the intense competition in the presidential race, "every vote will matter, and votes for cryptocurrency are no exception."

SEC Chairman Gary Gensler has been highly critical of some cryptocurrency companies.

This year's crackdown on cryptocurrency in the U.S. has resonated in Europe as well. In April, the EU reached new legislation aimed at reducing the risk of cryptocurrency being exploited by criminals.

However, other regulatory bodies have been slower to act. The G20 is developing minimum standards for cryptocurrency, but these standards are not legally binding and progress on implementation has been slow.

In the U.S., a bill regulating cryptocurrency has passed the House, but has yet to pass the Senate. Critics argue that this would reduce protections for consumers.

Grewal of Coinbase supports the bill and stated, "This industry is not avoiding regulation." He added that the industry simply wants to apply the same standards to cryptocurrency as to other assets, "not stricter, but also not more lenient."

As the November U.S. elections approach, the cryptocurrency industry feels a sense of opportunity, hoping to elect lawmakers sympathetic to the industry.

By last month, the industry had already spent a record $119 million on donations, according to research from the nonprofit Public Citizen.

Rick Claypool, research director at the consumer advocacy organization, stated that this money was used to "help elect candidates who support cryptocurrency and attack critics of cryptocurrency, regardless of political affiliation."

He added that their spending on corporate donations surpassed that of any other industry as they sought to bend the U.S. Congress to their demands for reduced regulation and weakened consumer protections.