Here's Why Today's U.S. Election Matters for Crypto

It’s kind of weird to say this, but the U.S. election could have a massive impact on the crypto market. You might be thinking, "How can a political event affect my crypto portfolio?" Well, let's set all these questions aside for a moment and dive into why today's election matters for crypto.

First off, let's talk about the candidates. On one hand, we have Donald Trump, who's been actively courting the crypto community. He's styled himself as the first pro-crypto leader, pledging to establish a Bitcoin reserve and ease regulations. On the other hand, we have Kamala Harris, who's been largely silent on the issue, aligning with the Biden administration's skepticism towards crypto.

Now, you might be wondering, "How does this affect me and my crypto investments?" Well, the regulatory landscape for crypto in the U.S. is still evolving, and further developments are expected to occur in the coming years. Various government agencies are employing diverse strategies to regulate different aspects of the industry, reflecting their unique mandates and objectives.


The U.S. Securities and Exchange Commission (SEC) is the primary regulator of securities in the U.S. Under Chairman Gary Gensler, who was appointed by President Joe Biden, it has taken a more aggressive stance on crypto regulation, labeling many tokens as securities and cracking down on unregistered offerings. This has created uncertainty and stifled innovation in the industry.

Now, let's talk about how the election could impact the crypto market. If Trump wins, we might see a more favorable regulatory environment for crypto. His pro-crypto stance could encourage innovation and investment in the sector. However, Trump's recent change of heart on crypto, from dismissing it as a scam to advocating for its inclusion in strategic reserves, raises questions about his commitment to the industry.


If Harris wins, we might see a continuation of the current regulatory scrutiny, potentially stifling growth and driving businesses out of the U.S. The Biden-Harris administration has been criticized for its lack of clear regulatory guidelines, which has created uncertainty and stifled innovation.

Now, you might be thinking, "How can I prepare for these potential outcomes?" Well, one way to hedge against election results is to set up short and long positions. If markets rally pre-election, a short position could be advantageous, as a "buy the rumor, sell the news" scenario might follow the election results. If markets decline pre-election, traders could prepare for a 3x–4x leverage long position, especially if Bitcoin sees a dip to the $66,000 range, anticipating a market bounce if Trump secures a favorable outcome.


In conclusion, the U.S. election could have a significant impact on the crypto market. The regulatory landscape for crypto in the U.S. is still evolving, and the next administration's stance on crypto regulation will play a crucial role in shaping the industry's growth and innovation. As investors, it's essential to stay informed about the political landscape and adapt our portfolios accordingly.