Crypto-friendly White House would ignite market surge
A MORE crypto-friendly administration in the White House could be the tipping point that drives global legitimacy and market expansion.
With Democratic presidential candidate Kamala Harris signalling her support for policies that nurture the growth of the cryptocurrency industry, a new era may be on the horizon - one where the US government’s backing could bolster the credibility of digital assets, not just domestically but across the world.
The implications of a pro-crypto White House extend far beyond American borders.
The US, as the world's largest economy, sets the tone for global financial markets. When the American government endorses a particular policy direction, it sends ripples through international institutions, national governments, and financial markets alike.
Harris’s potential support for crypto policies could ignite a domino effect, leading to broader acceptance and adoption of cryptocurrencies globally, while also driving up their prices.
US leadership in global financial policy
Historically, US leadership has played a critical role in shaping the international financial system.
From the establishment of the Bretton Woods system to the global dominance of the dollar, US policy has often set the standard for other nations to follow. In a similar vein, a crypto-friendly administration could spearhead a wave of legitimisation for digital assets, especially in regions where scepticism currently prevails.
Take Europe, for example. Under the leadership of figures like Christine Lagarde at the European Central Bank, the Eurozone has been cautious about embracing cryptocurrencies, citing concerns about financial crime and instability.
However, the European Union has also moved towards strong regulation, as evidenced by the Markets in Crypto-Assets (MiCA) framework. If the US were to embrace a regulatory framework that balances innovation with oversight, it could serve as a blueprint for the EU, encouraging the region to adopt a more crypto-supportive stance.
Similarly, in nations like India, where leaders like Narendra Modi have expressed scepticism towards crypto, a shift in US policy could nudge these countries toward a more balanced approach.
India, which has oscillated between strict regulation and potential bans, might be persuaded to reconsider its hard-line stance if a crypto-friendly US demonstrates the economic benefits of fostering blockchain innovation.
International institutions
Beyond national governments, a pro-crypto White House could influence global institutions like the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
These organisations have traditionally called for stricter regulations on cryptocurrencies due to concerns about financial instability.
However, should the US become more positive, these institutions may be compelled to reassess their positions. A globally coordinated effort to regulate - rather than stifle - crypto could emerge, creating an environment where digital assets are viewed as legitimate components of the global financial system.
A shift in US policy could also encourage greater collaboration between governments and the private sector, enabling crypto firms to innovate within a clearer regulatory framework.
This, in turn, would attract more institutional investors, who have been hesitant to enter the market due to the lack of regulatory clarity. Increased institutional participation would further drive up the legitimacy - and price - of crypto, especially the likes of Bitcoin.
A supportive US administration could lead to a surge in prices as investors gain confidence in the long-term viability of digital assets. Moreover, with the US providing a regulatory model that balances innovation and security, other nations might follow suit, leading to a global wave of adoption that further drives up demand - and prices - for cryptocurrencies.
This isn’t just speculation. Previous shifts in US policy have had tangible impacts on global markets. When the SEC signalled potential approval of Bitcoin ETFs, it sparked rallies across the crypto market.
Similarly, a Harris administration’s positive stance on crypto could lead to a more favourable regulatory environment, triggering a sustained bull run.
In the end, a more crypto-friendly White House isn't just a win for the industry – it’s a win for the future of finance.
By Nigel Green, deVere Group CEO and founder
