Will the market continue to rise as both US political parties now adopt a friendly stance towards cryptocurrencies?

With the 2024 US presidential election approaching, 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 remarkably well in the market due to Trump’s recent involvement in the cryptocurrency field, garnering widespread support from relevant individuals.


Another significant trend related to this is the rapid shift in attitude towards cryptocurrencies by the Democratic Party and current President Biden. In order to secure victory in the election, candidates have set aside their reservations and embraced this previously hesitant field, recognizing the potential and power of the cryptocurrency industry as a force that cannot be ignored.
Trump and the Republican Party’s attitude towards crypto assets has taken a 180-degree turn, impacting the market.
During Trump’s presidency, he displayed clear skepticism and mistrust towards cryptocurrencies. In 2019, Trump publicly stated on Twitter that cryptocurrencies like Bitcoin were “not real money” and their value was “highly volatile and based on thin air.” However, since leaving the White House in 2021, Trump’s attitude towards cryptocurrencies has undergone a significant transformation, with a more pronounced shift as the 2024 election approaches. This change has not only affected his campaign strategy but also had a profound impact on the cryptocurrency market.
1. Acceptance of cryptocurrency donations:
The Republican Party is extending a broader invitation to the cryptocurrency community, with Trump’s campaign team announcing that they accept cryptocurrency donations, allowing supporters to donate through Coinbase Commerce.
This move demonstrates Trump’s more active embrace of cryptocurrencies, leveraging their appeal to young voters and tech enthusiasts. Furthermore, Trump emphasized his appreciation for cryptocurrencies during a luxury dinner held for his NFT supporters at Mar-a-Lago.
2. Policy and market impact:
The change in Trump’s team goes beyond symbolic meaning. Republicans within the party 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 of the Securities and Exchange Commission (SEC). Additionally, Trump’s supporters, such as Vivek Ramaswamy and Ron DeSantis, have pledged 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 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 regulatory measures to promote the development and innovation of the cryptocurrency industry.
3. Political strategy and voter influence:
Trump’s support for cryptocurrencies is not only a policy shift 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 adopting a hostile attitude towards 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 growing influence of cryptocurrencies among voters. A survey showed that in six key swing states, over 20% of voters consider cryptocurrencies 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, becoming an important issue in elections.
Under Trump’s fierce attack, Biden and the Democratic Party’s cryptocurrency policies and attitudes appear passive.
Trump has turned the cryptocurrency field into one of his new weapons against Biden. The Biden administration had previously taken a cautious stance on cryptocurrencies, emphasizing consumer protection, financial system stability, and environmental impact. Given the significant number of cryptocurrency users, Biden and the Democratic Party naturally cannot afford to ignore this portion of the vote, so they have had to follow suit 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 swiftly adjusted their attitudes and policies towards cryptocurrencies, as evident in a series of recent measures.
1. Executive orders and regulatory frameworks:
In 2022, Biden issued an important executive order instructing multiple federal agencies to coordinate the development of digital asset policies. This order highlights the risks posed by the rapid development of the cryptocurrency market, such as financial stability issues, data privacy and security concerns, and environmental impact. The Biden administration recognizes the potential risks and opportunities of digital assets and seeks to establish a comprehensive regulatory framework to ensure market stability and transparency.
To protect consumers and the stability of the financial system, the Biden administration has strengthened regulation of cryptocurrency exchanges and service providers, ensuring that these institutions comply with appropriate regulations and oversight. Additionally, the Biden administration is also concerned about the environmental impact of cryptocurrency mining and explores ways to support technological innovation while reducing carbon footprints.
2. Support for the FIT21 crypto bill:
The Biden administration announced that if the FIT21 crypto bill is passed, he will not veto it and called on Congress to cooperate on a “comprehensive and balanced regulatory framework for digital assets.” This statement indicates that while the Biden administration is implementing strict regulations, it also supports the development of the cryptocurrency market.
3. Youth voter strategy:
To win the support of young voters, Biden’s campaign team plans to hire a meme manager, attempting to establish a connection with Gen Z voters through managing social media content and meme pages. This strategy demonstrates that the Biden administration recognizes the importance of cryptocurrencies and digital culture in elections and hopes to boost its electoral support through interaction with young voters.
4. Internal differences and coordination:
Although the Biden administration, as a whole, has taken a more cautious and pragmatic approach to cryptocurrencies, there are 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, another group of Democratic lawmakers supports more crypto-friendly policies, believing that they can promote financial innovation and economic growth.
US policies play a crucial role in the direction of the cryptocurrency market, with even greater impact after the election.
As the election season approaches, the interplay between Biden and Trump in cryptocurrency policies demonstrates the increasingly close connection between politics and the financial market. Both candidates hope to gain support in this field by embracing cryptocurrencies, and this strategy has had a profound impact on the development of the cryptocurrency market. In particular, tokens in the PolitiFi sector, such as MAGA Coin, have surged 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 showcases cryptocurrencies as a new asset class with unique market mechanisms and potential. PolitiFi tokens provide investors with a new way to invest and express their political stance by combining the seriousness of political activities with the humor of meme culture.
Against the backdrop of the 2024 US presidential election, the shifts in Trump and Biden’s cryptocurrency policies highlight the increasingly close connection between politics and the financial market. Both candidates hope to gain support in this 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.