Cryptocurrency in Transition: Hope for a Softer Approach from Washington

The crypto industry has been grappling with regulatory issues under President Joe Biden's administration for years. However, industry insiders now expect a more relaxed approach from Washington, regardless of who moves into the White House next week. Crypto asset managers like Bitwise and Canary Capital are already working on new products in anticipation of a more crypto-friendly government. Meanwhile, companies like Ripple are planning a new initiative for crypto legislation in the new Congress, as reported by both executives and legal experts. "Regardless of the election outcome, there will be a new approach to how we move forward with cryptocurrencies," explains Rebecca Rettig, Chief Legal Officer at Polygon Labs. Donald Trump, one of the Republican candidates, has promised to be a "crypto president." It is also expected that Kamala Harris, as the Democratic candidate, will adopt a gentler stance compared to Biden. Harris has not yet detailed her plans for cryptocurrency but has indicated that she aims to promote the innovation of digital assets and protect crypto investors. A committed supporter of Harris, entrepreneur Mark Cuban, criticizes the stringent stance of the Securities and Exchange Commission (SEC) under the chairmanship of Gary Gensler, appointed by Biden. Gensler describes the crypto industry as a risk for investors and points to the collapse of FTX and numerous other bankruptcies and frauds that call for stricter regulations. Since Bitcoin's debut in 2009, the crypto market has been extremely volatile. The SEC under Gensler has taken several legal actions against platforms like Coinbase and Kraken, which allegedly violate U.S. securities laws. Crypto actors dispute these allegations, arguing that cryptocurrencies should be regulated like commodities. Trump has declared his intention to dismiss Gensler, while Harris has not signaled similar intentions. Gensler's term lasts until 2026, and he states that his stance on crypto has not changed. An SEC spokesperson declined to comment. Trump's plans to promote Bitcoin have garnered him significant crypto donors, including Gemini founders Cameron and Tyler Winklevoss. Ripple chairman Chris Larsen has also generously supported Harris' Super PAC, and new Democrat-aligned crypto groups have raised funds for Harris.