- Kamala Harris might be unexpectedly positive for Bitcoin despite her moderate crypto rhetoric and potential stringent regulations by the SEC.
- VanEck argues that these stricter regulations could accelerate the structural challenges that drive the adoption of Bitcoin.
While many expect Donald Trump (Republican candidate) with his deregulation approach to be Bitcoin‘s best ally, asset manager VanEck suspects that Kamala Harris (Democratic candidate) might be more advantageous for the digital currency than the former president. How is this possible?
VanEck, led by Matthew Sigel, Director of Digital Asset Research, and Nathan Frankovitz, Investment Analyst, explains its perspective on the upcoming November 5 elections.
Regulatory Clarity and Its Paradoxical Benefit
Even though Harris might retain Gary Gensler as the chairman of the Securities and Exchange Commission (SEC) or ally with figures like Senator Elizabeth Warren, known for her anti-cryptocurrency stance, VanEck claims that this restrictive regulatory environment could indirectly benefit Bitcoin, the first digital currency.
While Warren’s proposals aim to control cryptocurrency transactions and enhance oversight, which could negatively impact the digital ecosystem in general, Bitcoin stands out due to its unique structure that allows transactions without intermediaries, making it more competitive in the face of stricter regulations.
VanEck argues that under a Harris presidency,
“the structural problems driving the adoption of Bitcoin would accelerate”
and its regulatory clarity would better position it compared to other digital assets. This is attributed to Bitcoin‘s decentralized design, which enables users, both governments, and individuals, to conduct transactions without relying on banks or intermediaries. This system contrasts with current banking systems, which depend on various intermediaries and trusted entities to facilitate transactions.
Trump Promises Broad Deregulation
On the other hand, Trump promises deregulation and business-friendly policies, which is why VanEck believes that a Trump presidency would generally be
“optimistic for the entire cryptocurrency ecosystem.”
However, Trump’s recent foray into the world of crypto-assets has been less encouraging. The launch of his World Liberty Financial platform has not sparked the anticipated enthusiasm, and the lack of concrete details has left investors with more questions than answers, as reported by CriptoNoticias.
Analysts like Simon Dixon criticize the timing of the launch and suspect that this could alienate part of the Bitcoin community, which traditionally rejects any form of central control.
Regardless of the election outcome, the trend of “growing budget deficits and rising national debt” will continue, weakening the dollar and, according to VanEck, creating an ideal macroeconomic environment for Bitcoin‘s continued success.
At the moment, Harris appears to be ahead in the race. According to data from the decentralized prediction market Polymarket, the Democratic candidate is leading in four out of six key states, including Wisconsin, Pennsylvania, Michigan, and Nevada, with odds between 51% and 66%.
While a Trump presidency could open doors for the cryptocurrency ecosystem as a whole, VanEck suggests that Harris, paradoxically, might be particularly better for Bitcoin.