Moving along to Token2049, a premier cryptocurrency conference held in Singapore in September, CoinTelegraph's editor-in-chief Gareth Jenkinson moderated a panel discussion on the potential impact of the U.S. presidential elections on the crypto industry.

The panelists, including Yat Siu, chairman of Animoca Brands, shared their unfiltered views on the candidates. "A Harris win could be detrimental to the U.S. crypto industry but beneficial globally," Siu said, pointing out that many crypto companies could relocate to Europe or Asia if regulations tighten. “It’s like the exit of Americans to Canada after Trump’s win in 2016,” he added, hinting at the possible exodus of talent and innovation.

Tim Draper, venture capitalist and long-time Bitcoin advocate, was also outspoken on the topic. When asked if crypto was truly on the U.S. political agenda or just a distraction, Draper replied, “I think with 50 million people holding crypto and Bitcoin wallets, politicians should pay attention.”

He believes that cryptocurrency has moved beyond the realm of speculative investment and into mainstream society, making it impossible for any serious candidate to ignore.

Kamala Harris, while less vocal on cryptocurrency than Trump, has made late attempts to court the crypto community. Her campaign has signalled a willingness to explore regulatory frameworks that would not stifle innovation, but many remain sceptical of her sincerity.

Charles Hoskinson, founder of Cardano, expressed concern that crypto was being turned into a partisan issue. “Trump is launching a DeFi application, and that’s scary to me because everything Trump does, the left hates with such a passion,” said Hoskinson. “He’s taken a bipartisan thing and he’s making it partisan.”

This feeling is echoed by another founder and CEO Charles Dray of Resonance Security. He says: “Crypto should be on the political agenda under the technology tab, but it has become more of a distraction because people have convinced themselves that it is a buzz word which is only good for improving their vote count. The reality is that crypto - I prefer to call it Blockchain technology - is a building block that will set the stage for growth and innovation together with legacy tech and emerging tech, and it should be taken more seriously as a technology instead of a buzz word.”

With record donations to political campaigns and growing bipartisan support, crypto has become a central topic in policy debates. Both candidates have acknowledged crypto's potential, with Trump aiming to position the U.S. as a global crypto hub.

Todd Ruoff, COO and CFO of Autonomys sees the crypto industry playing a key role in attracting swing voters, making crypto a vital issue for candidates in closely contested states.

“Dems barely cling to control of the Senate with just 51 of the 100 seats, while Republicans hold a narrow majority in the House with 222 seats to Democrats' 213. Republicans hope to take control of the Senate by targeting key swing states like Arizona, Nevada, and Pennsylvania, which would allow them to shape judicial appointments and block or advance crypto legislation in Congress.” he says.

“Additionally, several Political Action Committees (“PACs”) are heavily involved in both primary and general election Senate races in battleground states, demonstrating the growing influence of the crypto industry in U.S. politics​. PACs like Fairshake PAC, which raised over $102 million, and contributions from Coinbase and Ripple, have accounted for nearly half of all corporate campaign donations this year.

“In addition to the presidential race, the state congressional elections, swing states in particular, are an equally important area of focus for the crypto PACs,” says Ruoff.

Trump’s Crypto Ambitions: Bold or Bluster?

Trump’s embrace of crypto is not without its critics. Some see his moves as strategic, tapping into a growing and passionate voter base, but others, like Anthony Scaramucci, founder of SkyBridge Capital and a former Trump ally, have voiced scepticism. Scaramucci recently called Trump’s cryptocurrency venture a “campaign finance strategy” and hinted it might even be a pump-and-dump scheme. He suggested that Trump’s newly launched decentralized finance project, World Liberty Financial, could be more about profit than policy.

World Liberty Financial, launched in September 2024, has already raised eyebrows in the crypto community. The project promises a decentralized borrowing and lending platform, but initial reports of a 70% insider token allocation cast doubts on its transparency. Though the allocation was later reduced to 20%, the damage was done, with many questioning whether the platform was designed for financial gain rather than technological innovation. Chase Herro, a controversial figure with a checkered history, has emerged as the project’s driving force, adding to the scrutiny.

Despite the doubts surrounding Trump’s sincerity, Draper believes that Trump’s approach could help the U.S. regain its competitive edge in the crypto space. When asked whether Republicans, aside from Trump, are keen on crypto, Draper responded, “People from all parties own crypto. I think it transcends traditional political boundaries.”

Dan Weinberger, CEO of Morpheus.Network sees crypto as having evolved from a niche topic to a critical part of the global financial conversation.

"Its presence in the 2024 U.S. presidential race highlights how far we've come. The focus on blockchain technology and digital assets from both sides of the political spectrum underscores the need for clear regulatory frameworks that foster innovation while ensuring security. It's a pivotal moment for the industry, and the decisions made in the coming years will determine whether the U.S. can maintain its leadership in the digital economy or fall behind other regions more open to technological advancement,” says Weinberger.

Harris and the Democrats: Too Little, Too Late?

Kamala Harris’ recent attempts to engage with the crypto community have come across as reactive rather than visionary. Her camp seems to be scrambling to address the issue after Trump’s embrace of the technology. But Draper warns that the Democrats risk losing ground if they don't adopt a clear and supportive stance.

“I think politicians can't put their heads in the sand with respect to cryptocurrency,” Draper says. “Bitcoin will be the dominant global currency in ten years. The policies over the next decade will determine whether the U.S. retains its leadership status.”

One of the key figures shaping the Democrats' crypto policy is Senator Elizabeth Warren, known for her staunch opposition to the industry. Warren has repeatedly called for stringent regulations on digital assets, earning her the ire of many in the crypto community. As Yat Siu and other panelists at Token2049 pointed out, a Harris presidency might be perceived as “anti-venture, anti-startup, and anti-crypto,” a stance that could drive entrepreneurs and innovators out of the U.S. and into more welcoming markets abroad.

Draper remains optimistic about the future of crypto in the U.S. but suggests some key changes that could help the country regain its position as a leader in the space. “Allow airdrops,” he advises, pointing out that much innovation is currently geofenced due to restrictive U.S. regulations. Draper also calls for simplifying taxation by allowing crypto businesses to pay taxes in cryptocurrency and eliminating capital gains taxes on crypto transactions. He believes these steps could unlock massive growth in the U.S. market.

The SEC’s Role: Confusing and Restrictive?

One of the main obstacles to crypto’s growth in the U.S. has been the stance of the Securities and Exchange Commission (SEC). Draper is blunt in his assessment:

“They have been confusing. They were crazily supportive of [Sam Bankman-Fried], and now they’re going after groups like Coinbase who are doing everything by the book.”

Draper’s criticism echoes the frustrations of many in the crypto industry, who feel the SEC’s inconsistent approach has stifled innovation and driven businesses to more crypto-friendly jurisdictions.

Shibtoshi adds: “The ‘crypto vote’ is an emerging force in the upcoming presidential election, and while it may not yet be a dominant voting bloc, its influence is growing rapidly. As crypto adoption increases and more people become passionate about financial freedom, innovation, and decentralized finance, this community is becoming an important group that candidates cannot afford to ignore.”

With weeks before the crucial US presidential elections, the future of cryptocurrency regulation hangs in the balance. Both Trump and Harris are courting the crypto vote, but whether either candidate can deliver a coherent and supportive policy remains to be seen.

For now, as Draper aptly puts it, “50 million wallets matter when this election might be decided by 10,000 votes.”