As Biden drops out of POTUS race, what are the implications for crypto?

ChainPlay

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4 months ago

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President Biden dropped a considerable bombshell after removing himself from the running to become the next president of the US (POTUS), seemingly paving the way for Donald Trump to win an unprecedented second term, or so people thought. With Kamala Harris now securing the Democrat nomination, many experts are expecting her relative youth compared to Trump to be a significant advantage in the pursuit of voters. 

But what does all this mean for cryptocurrencies? These virtual currencies have typically had trouble convincing governments and traditional financial institutions that they deserve to be taken seriously, although the Biden administration has notably softened its stance in recent years. The changing of the guard coming up in November 2024 could prove to be either disastrous or beneficial for the crypto industry, with the end result being difficult to call.

So, will the popularity of NFT games and other crypto-based options keep increasing at an exponential rate, or will the new incoming POTUS decide to outlaw crypto? We’ve done the heavy lifting so you don’t have to. Keep reading for a comprehensive exploration of what might happen next in the US regarding crypto. 

Why is crypto popularity surging?  

Cryptocurrency’s popularity has skyrocketed over the past decade, going from a fascinating new concept for financial exchange that few people actually expected to last to a bona fide reality that could completely revolutionize global finance. Here are a few of the many reasons why crypto popularity is surging: 

• Decentralization: One of the mysterious pseudonym Satoshi Nakamoto’s main goals when creating Bitcoin was to create a decentralized financial system free from the influence of traditional institutions like banks and global governments. This has huge appeal for people seeking complete financial independence and transparency. 
• Potential investment gains: While there are a growing number of people using Bitcoin and other cryptocurrencies to make everyday purchases, the vast majority of crypto owners are in it for the investment value. The potential gains can be off the scale, but investors must also be careful as cryptocurrencies are inherently volatile. 
• Security: Cryptocurrency is built on blockchain, which provides significant security. It’s almost impossible to steal Bitcoin because all the information regarding owners and transactions is recorded in one decentralized ledger. Additionally, users paying for services or products online with cryptocurrency don’t need to supply the same degree of sensitive financial information. 
• Innovation: Cryptocurrency was just the start of an exciting wave of blockchain and other crypto-related technology. From next-gen to the new world of blockchain-based virtual real estate in games like Decentraland, the possibilities are well and truly endless. Sites like bitcoin-casino.ltd are also providing an almost endless array of crypto casino games, another great example of how pioneering this technology can be. 

With these points in mind, let’s explore what Biden’s stepping down from the US presidential race means for cryptocurrency. 

What was Biden’s stance on crypto? 

First and foremost, understanding Biden’s stance on cryptocurrency is important in order to assess what comes next after the president leaves the White House. Reporting can actually contrast rather heavily, so it can be difficult to form an accurate idea. One concrete thing to consider is Biden’s 2022 executive order on cryptocurrencies. 

This demanded the government perform extensive investigations into the risks and benefits of cryptocurrencies, with the view to at least work on ways that the US dollar could be digitalized. Other main focuses were consumer protection, financial stability, illicit activity, US competitiveness, financial inclusions and responsible innovation. 

Now, what comes after this executive order for an investigation into crypto is harder to determine. Some analysts expected Biden to clamp down on cryptocurrencies in his 2023 budget, with reports that he was considering a significant tax hike on profits made from trading crypto and NFTs. Elon Musk was a notable supporter of this theory, something that will either convince you further or make you reconsider depending on your inclination towards the Tesla founder. 

Getting to the bottom of Biden’s stance can drop some useful clues regarding how a potential Kamala Harris administration would treat crypto. It’s likely she would approach with caution at first, although with such a potentially revolutionary opportunity to drive real financial change at her fingertips, she could just as easily decide to remove the shackles.   

Why did Biden drop out of the POTUS race? 

Did cryptocurrency have anything to do with Biden dropping out of the POTUS race? Not really, although the weight of such a significant decision at some point during the next four years of a potential second term must have entered his head. 

In fact, Biden dropped out of the presidential race for age reasons, as several fellow Democrats expressed their fear he was too old. It was a commendable move by the outgoing president, who was beginning to trail Donald Trump in the polls by an increasing distance.

What comes next for the Democrats? 

With Biden removing himself from the US presidential race, the attention has immediately turned to what the Democrats will do with just over three months left. Current Vice President Kamala Harris has secured the nomination to run against Trump, with strategists already becoming more optimistic that she can do much better than Biden. 

This is especially apparent after the president’s various blunders in recent weeks, finally forcing him to stand down from the next election race. It’s too early to tell what the Democrats’ position will be on cryptocurrency, but analysts are keenly watching for developments. 

How would crypto fare under Trump? 

Donald Trump is looking like a force to be reckoned with in the build up to November, especially after surviving an assassination attempt. As with many things, it can be difficult to gain a concrete idea of exactly where he stands on crypto. During his first term in office, Trump was dismissive of cryptocurrency, even calling it a scam. 

Nowadays, however, he is a huge advocate. Trump headlined the Bitcoin 2024 conference recently, but was it just a bid for more votes? Only time will tell.