Crypto industry anticipates easier regulations under new administration; positive for crypto market
From Investing.com
October 31, 2024 12:26:55 PM:
The cryptocurrency industry expects a more positive regulatory environment under a new administration, regardless of who wins the White House. Executives anticipate easier regulations from Washington, with both Republican and Democratic candidates showing signs of support for digital assets and innovation.
While the current SEC Chair Gary Gensler has been critical of the crypto industry, executives believe that Vice President Kamala Harris may take a softer stance. Harris has shown support for digital asset innovation and protecting crypto investors, encouraging industry players.
Crypto players have faced enforcement actions from the SEC, accused of violating securities laws. The industry, with a global market value of $2.5 trillion, argues that cryptocurrencies should be regulated like commodities, not securities.
President Trump’s plan to promote bitcoin has garnered support from big crypto donors, while Democratic-aligned crypto groups have raised funds for Vice President Harris. Industry players have backed pro-crypto congressional candidates, aiming to advance legislation supporting stablecoins and mainstream crypto adoption.
Executives believe that the SEC under Harris may reconsider guidance that restricts public companies from accounting for crypto assets as liabilities. Overturning this guidance would allow for more crypto adoption by consumers and lenders, potentially accelerating growth in the crypto market.
State Street announced plans to offer crypto custody, expecting the SEC to revise its guidance. Recent developments indicate a thaw in the regulatory environment, with the SEC granting approval for BNY to custody cryptocurrencies without accounting for them as liabilities, signaling a shift in the political climate.
Bitwise and Canary Capital have filed SEC applications to launch products tracking Ripple’s XRP token, anticipating a friendlier SEC in the future. These applications are seen as a bet on a more favorable regulatory environment under a new administration, reflecting optimism in the crypto industry.
Read more at Investing.com: Analysis-US crypto industry expects friendlier Washington, whoever wins White House By Reuters