As the 2024 US presidential election approaches, the cryptocurrency market, especially the meme coin sector related to US election politics, has shown significant growth and activity. In particular, tokens in the PolitiFi sector, such as TRUMP, MAGA, and TRUMP2024, which are closely associated with former President Donald Trump, have performed exceptionally well in the market. This is because Trump has recently shown support for cryptocurrency operations, gaining widespread support from relevant individuals.
Another notable trend related to this is the rapid shift in attitude towards cryptocurrencies by the Democratic Party and current President Biden. In order to succeed in the election, candidates have set aside their reservations and embraced this previously controversial field. The potential and strength of the cryptocurrency industry is something they cannot afford to overlook.
Trump and the Republican Party have made a 180-degree turnaround in their attitude towards crypto assets, which has affected the market. During Trump’s presidency, he showed clear skepticism and distrust towards cryptocurrencies. In 2019, he publicly stated on Twitter that cryptocurrencies like Bitcoin were “not real money” and their value was “highly volatile, based on thin air.” However, since leaving the White House in 2021, Trump’s attitude towards cryptocurrencies has undergone a significant change. With the 2024 election approaching, Trump’s attitude has undergone an even more significant shift, which has not only affected his campaign strategy but also had a profound impact on the cryptocurrency market.
Firstly, the Republican Party is reaching out to the cryptocurrency community more widely, with Trump’s campaign team announcing that they will accept cryptocurrency donations, allowing supporters to donate through Coinbase Commerce. This move shows that Trump is more actively embracing cryptocurrencies to attract support from young voters and tech enthusiasts. Moreover, at a luxurious dinner held for his NFT supporters at Mar-a-Lago, Trump further emphasized the importance of cryptocurrencies.
The shift in Trump’s team is not just symbolic. Republicans internally are also pushing for more crypto-friendly policies. Prominent Republican lawmakers such as Tom Emmer and Patrick McHenry are drafting legislation aimed at supporting the cryptocurrency industry while limiting the strict regulation by the Securities and Exchange Commission (SEC). Additionally, Trump’s supporters like Vivek Ramaswamy and Ron DeSantis have also promised to implement crypto-friendly policies in their campaign activities.
These series of measures indicate that if Trump is re-elected, he may push for a series of policies that are favorable to the cryptocurrency industry. These policies may include appointing regulators who are more open and supportive of cryptocurrencies, such as former Coinbase Chief Legal Officer Brian Brooks or current SEC Commissioner Hester Peirce. These regulators may adopt more relaxed regulations to promote the development and innovation of the cryptocurrency industry.
Trump’s support for cryptocurrencies is not just a policy change, but also part of his campaign strategy. As the election season approaches, Trump is using cryptocurrencies as a weapon to attack the Biden administration, accusing the current government of being hostile to the cryptocurrency industry. SEC Chairman Gary Gensler’s strict enforcement actions against several cryptocurrency companies during the Biden administration further angered the cryptocurrency community.
At the same time, Trump’s strategy also reflects the influence of cryptocurrencies among voters. A survey showed that in six key swing states, over 20% of voters consider cryptocurrencies as an important issue. Another national survey showed that 51% of cryptocurrency owners support Trump, while 41% support Biden. This political divide indicates that the influence of cryptocurrencies among voters is gradually increasing and becoming an important issue in elections.
Trump has turned the cryptocurrency field into one of his new weapons against Biden. The Biden administration previously had a cautious stance on cryptocurrencies, emphasizing consumer protection, financial system stability, and environmental impact. Due to the large number of cryptocurrency users, Biden and the Democratic Party cannot afford to ignore this portion of the voters. Therefore, they have had to follow up on this and show some goodwill towards the cryptocurrency field.
In response to Trump’s active involvement in the cryptocurrency field, President Biden and the Democratic Party quickly adjusted their attitudes and policies towards cryptocurrencies. A series of recent measures shows the positive shift in the Biden administration’s cryptocurrency policy.
Firstly, in 2022, Biden issued an important executive order instructing multiple federal agencies to coordinate the development of digital asset policies. This order emphasizes the risks brought by the rapid development of the cryptocurrency market, such as financial stability, data privacy and security issues, and environmental impact. The Biden administration recognizes the potential risks and opportunities of digital assets and strives to establish a comprehensive regulatory framework to ensure market stability and transparency.
To protect consumers and financial system stability, the Biden administration has strengthened regulation of cryptocurrency trading platforms and service providers to ensure compliance with appropriate regulations and supervision. Additionally, the Biden administration is also concerned about the environmental impact of cryptocurrency mining and is exploring ways to support technological innovation while reducing carbon footprint.
The Biden administration announced that if the FIT21 cryptocurrency bill is passed, Biden will not veto the bill and called on Congress to cooperate on creating a “comprehensive and balanced regulatory framework for digital assets.” This statement indicates that while the Biden administration is implementing strict regulation, it also supports the development of the cryptocurrency market.
In order to win the support of young voters, the Biden campaign team plans to hire a meme manager to establish a connection with Generation Z voters through managing social media content and meme pages. This strategy shows that the Biden administration recognizes the importance of cryptocurrencies and digital culture in elections and hopes to increase its election support through interaction with young voters.
Although the Biden administration has taken a more cautious and pragmatic approach to cryptocurrencies overall, there are also internal differences of opinion. Some Democratic lawmakers, such as Senator Elizabeth Warren, have a more skeptical and cautious attitude towards cryptocurrencies, emphasizing their potential risks to consumers and the financial system. However, other Democratic lawmakers support more crypto-friendly policies, believing that it helps promote financial innovation and economic growth.
US policies play a crucial role in shaping the direction of the cryptocurrency market, and this influence will be even more significant after the election. As the election season approaches, the game between Biden and Trump in cryptocurrency policies showcases the increasingly close connection between politics and the financial market. Both candidates hope to gain support from this field by embracing cryptocurrencies, and this strategy has had a profound impact on the development of the cryptocurrency market. In particular, the PolitiFi token sector, such as MAGA coin, has skyrocketed in value by about 400% in the past month. This phenomenon reflects the market’s sensitivity to political events and their impact on market dynamics.
The vibrancy of the cryptocurrency market not only demonstrates investors’ high level of attention to political events but also reflects the unique market mechanisms and potential of cryptocurrencies as a new asset class. PolitiFi tokens provide investors with a new way to invest and express their political positions by combining the seriousness of political activities with meme culture.
In the context of the 2024 US presidential election, the shifts in Trump and Biden’s cryptocurrency policies demonstrate the increasingly close connection between politics and the financial market. Both candidates hope to gain support from the cryptocurrency field by embracing cryptocurrencies, and this strategy has had a profound impact on the development of the cryptocurrency market. For investors and market observers, paying attention to the evolution of this trend will help understand the future direction and potential opportunities of the cryptocurrency market.
