US Elections 2024 and Crypto: How Will Trump or Harris Shape Regulations?

US Elections 2024 and Crypto: How Will Trump or Harris Shape Regulations?
  • Donald Trump wants to become the first “Bitcoin President,” while Kamala Harris promised crypto innovation.
  • A Trump victory could lead to a continuation of the deregulatory approach, but a Harris administration would likely prioritise consumer protection and financial stability.

As the United States gears up for another significant presidential election, the intersection of politics and cryptocurrency has emerged as a critical area of focus. The candidates, former President Donald Trump and Vice President Kamala Harris, offer contrasting visions for the future of digital currencies and blockchain technology. This divergence is not only shaping the political landscape but also influencing financial markets, particularly the rapidly growing cryptocurrency sector.

The Crypto Landscape Amidst Political Uncertainty

Cryptocurrency, once a niche interest, has evolved into a major financial force. Its decentralized nature and potential for high returns have attracted a wide range of investors, from tech-savvy millennials to institutional giants. However, the regulatory environment remains uncertain, with policymakers grappling with how to integrate these digital assets into the existing financial system.

In this context, the upcoming U.S. presidential election could be a turning point. The candidates’ differing approaches to cryptocurrency regulation and adoption could have profound implications for the industry. As such, the election is not just a political contest but a referendum on the future of digital finance.

Wall Street’s Bet on Trump

Wall Street’s apparent preference for a Trump victory is rooted in his administration’s historical approach to regulation and taxation. Trump’s presidency was marked by a deregulatory agenda, which many investors believe could benefit the cryptocurrency industry. Lower taxes and fewer regulations could create a more favorable environment for crypto businesses, potentially spurring innovation and growth.

This sentiment is reflected in the behavior of prediction markets, where Trump’s odds of winning have surged. Platforms like Polymarket and PredictIt have seen significant bets placed on a Trump victory, with some investors wagering millions of dollars. These markets, which allow users to bet on the outcome of events using cryptocurrency, have become a barometer of investor sentiment.

The enthusiasm for Trump among crypto investors is not surprising. During his previous term, Trump expressed skepticism about cryptocurrencies but refrained from implementing harsh regulations. His administration’s focus on economic growth and deregulation aligns with the interests of many in the crypto community, who view excessive regulation as a barrier to innovation.

Harris and the Promise of Innovation

In contrast, Vice President Kamala Harris represents a more cautious approach to cryptocurrency. While she has not been as vocal about her stance on digital currencies, her campaign has emphasized the importance of innovation and technology. Harris has promised to encourage the development of emerging technologies, including artificial intelligence and digital assets while ensuring consumer protection and financial stability.

Harris’s approach reflects a broader Democratic strategy of balancing innovation with regulation. Her administration would likely prioritize consumer protection and financial stability, potentially leading to stricter regulations on cryptocurrencies. This could include measures to prevent fraud, protect investors, and ensure the stability of the financial system.

Despite these potential challenges, Harris’s focus on innovation could also benefit the crypto industry. By fostering a supportive environment for technological development, her administration could encourage the growth of blockchain technology and digital assets. This could lead to new opportunities for entrepreneurs and investors, even if it means navigating a more complex regulatory landscape.

The Role of Prediction Markets

The divergence between traditional polls and prediction markets highlights the unique dynamics of this election. While many polls show a close race between Trump and Harris, prediction markets have consistently favored Trump. This discrepancy can be attributed to several factors, including the influence of large investors, or “whales,” who have placed substantial bets on a Trump victory.

These markets, which operate on blockchain technology, offer a decentralized platform for betting on the outcome of events. They have gained popularity in recent years, particularly among crypto enthusiasts who appreciate their transparency and accessibility. However, their predictions should be interpreted with caution, as they reflect the views of a specific subset of investors rather than the broader electorate.

The influence of prediction markets on media coverage is also noteworthy. As these platforms have gained prominence, their odds have been cited as evidence of Trump’s growing lead. This has contributed to a narrative that may not fully align with traditional polling data, underscoring the complex relationship between media, markets, and public perception.

The Future of Cryptocurrency Regulation

The outcome of the election will have significant implications for the future of cryptocurrency regulation in the United States. A Trump victory could lead to a continuation of the deregulatory approach that characterized his previous administration. This could create a more favorable environment for crypto businesses, potentially attracting investment and fostering innovation.

On the other hand, a Harris administration would likely prioritize consumer protection and financial stability, potentially leading to stricter regulations. While this could pose challenges for the industry, it could also provide a more stable and secure environment for investors, ultimately benefiting the market’s long-term growth.

Regardless of the outcome, the election will serve as a critical juncture for the cryptocurrency industry. As digital currencies continue to gain traction, policymakers will need to strike a balance between fostering innovation and ensuring the stability and security of the financial system. This will require collaboration between regulators, industry leaders, and other stakeholders to develop a regulatory framework that supports the growth of digital finance while protecting consumers and maintaining financial stability.

Conclusion: A Pivotal Moment for Crypto

The U.S. presidential election is a pivotal moment for the cryptocurrency industry. The candidates’ differing approaches to regulation and innovation will shape the future of digital finance, influencing everything from market dynamics to investor sentiment. As such, the election is not just a political contest but a referendum on the future of cryptocurrency.

For investors and industry leaders, the stakes are high. A Trump victory could lead to a continuation of the deregulatory approach that has benefited the industry, while a Harris administration could introduce new challenges and opportunities. Regardless of the outcome, the election will serve as a critical juncture for the cryptocurrency industry, shaping its trajectory for years to come.

As the election approaches, the crypto community will be watching closely, eager to see how the outcome will impact the future of digital finance. Whether through deregulation or innovation, the next administration will play a crucial role in shaping the future of cryptocurrency, influencing everything from market dynamics to investor sentiment. In this context, the election is not just a political contest but a referendum on the future of digital finance.

 

Source: https://www.financemagnates.com/cryptocurrency/us-elections-2024-how-will-trump-or-harris-administration-shape-crypto-regulations/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Blockchain & AI Change the Shape of Government in 2024

Blockchain & AI Change the Shape of Government in 2024

As we venture into the heart of 2024, information technology is undergoing a seismic shift. Government IT chiefs are grappling with a dual challenge: staying abreast of cutting-edge tech while harnessing its power to boost efficiency, security, and innovation.

This year’s standout trend? blockchain meeting artificial intelligence (AI) to reshape public sector IT strategies.

A recent workshop on Blockchain in e-Government, held in Cambodia’s bustling capital from August 5-9, 2024, highlighted the growing fascination with blockchain among state bodies.

The event drew delegates from nine nations and boasted the presence of dignitaries like H.E. Phork Sovanrith, a top official from MISTI and Cambodia’s APO Director, and highlighted blockchain’s pivotal role in molding tomorrow’s digital government services.

As the expert speaker, I witnessed firsthand the palpable excitement surrounding blockchain. The lively debates and probing questions revealed a keen appetite among public sector representatives for blockchain adoption. This shift isn’t fleeting; it marks a profound change in governmental attitudes toward technology.

Key Takeaways

  • Blockchain and AI are beginning to change how public sector IT works, offering security, efficiency, and innovation.
  • The Cambodia workshop in August highlighted global interest in blockchain’s role in transforming e-government services.
  • Blockchain’s transparency and AI’s analytical power can turbo-charge government operations and citizen engagement.
  • There are challenges in adopting these technologies — scalability, interoperability, and ensuring inclusive access among them.
  • Successful e-government transformation hinges on strategic planning, collaboration, and the ethical implementation of blockchain and AI.

Blockchain’s allure for the public sector is multifaceted. At its core, it offers a transparent, decentralized, and tamper-proof ledger system, significantly bolstering the security and integrity of government data and transactions. In our era of sophisticated cyberthreats, blockchain’s security features present an enticing shield for sensitive information.

Furthermore, blockchain’s capacity to streamline operations, slash red tape, and boost transparency aligns perfectly with e-government objectives. Its potential applications span from land registries and identity management to voting systems and public procurement.

Yet, blockchain’s true potential in e-government lies in its synergy with other emerging technologies, particularly AI. This powerful combination could spawn highly efficient, secure, and intelligent systems, revolutionizing public services.

Picture AI algorithms sifting through blockchain-stored data, uncovering patterns, forecasting trends, and making informed decisions. This could lead to more responsive and proactive government services. For instance, an AI-enhanced blockchain system could automatically flag and prevent fraud in public procurement, saving taxpayer money and ensuring fair competition.

Moreover, the AI-blockchain duo could supercharge citizen engagement in governance. Imagine smart contracts on a blockchain paired with AI-powered interfaces, creating intuitive, personalized e-government services. Citizens could interact using everyday language while AI ensures accurate processing and blockchain recording of their requests.

The enthusiasm for these technologies isn’t confined to one region. The diverse attendance at the Cambodia workshop, with participants from nine countries, signals global recognition of blockchain’s potential. This international collaboration is crucial for developing standards and best practices to facilitate widespread blockchain adoption in e-government.

However, the path to blockchain integration in the public sector isn’t without hurdles. Scalability, interoperability, and regulatory compliance are key challenges. There’s also an urgent need for capacity building and skill development within government agencies to implement and manage blockchain solutions effectively.

Looking ahead, it’s clear that blockchain and AI will remain focal points for IT leaders’ strategies. The public sector stands to gain significantly from these technologies. However, success hinges on a strategic approach that considers not just technical aspects but also organizational and cultural shifts needed to fully adopt these technologies.

For public sector IT leaders, key priorities should include developing clear blockchain strategies, investing in AI capabilities, fostering collaboration, prioritizing security, focusing on user experience, addressing ethical considerations, and maintaining agility in the face of rapid technological change.

It Won’t Be a Smooth Ride Though

The enthusiasm observed at the Cambodia workshop is encouraging, suggesting we’re on the brink of a major transformation in government operations and service delivery. However, it’s crucial to temper this excitement with a realistic understanding of the challenges ahead.

Implementing blockchain and AI solutions at a governmental level is a complex undertaking requiring careful planning, substantial resources, and, often, legislative changes. It’s not just about adopting new technologies; it’s about reimagining the delivery of government services and citizen-state interactions.

As governments rush to adopt these technologies, there’s a risk of creating a digital divide. Not all citizens may have equal access to or understanding of these new systems. IT leaders must ensure that blockchain and AI adoption doesn’t inadvertently exclude segments of the population.

Despite these challenges, the potential benefits of blockchain and AI in e-government are too significant to ignore. These technologies promise more efficient, transparent, and responsive government services. They can help rebuild trust in public institutions by providing verifiable records of government actions and decisions.

The interest shown by public sector representatives at the Cambodia workshop is a positive sign, indicating a willingness to learn and adapt. However, this enthusiasm must be channeled into concrete action plans and sustained efforts to realize the full potential of these technologies.

As we progress, it will be fascinating to see how different countries approach blockchain and AI adoption in their e-government initiatives. Will we witness a race to become blockchain-enabled smart nations? Or will the adoption be more measured and cautious?

What’s certain is that blockchain and AI are no longer just buzzwords or experimental technologies. They’re becoming integral to IT strategies, particularly in the public sector. The focus now should be on responsible and effective implementation that truly serves citizens’ needs.

The Bottom Line

In conclusion, as IT leaders map out their strategies for the coming years, blockchain and AI will undoubtedly be at the forefront. The convergence of these technologies presents an unprecedented opportunity to transform e-government services. However, success will depend on more than just technological prowess. It will require visionary leadership, collaborative efforts, and a commitment to ethical and inclusive implementation.

The journey towards blockchain and AI-enabled e-government has just begun. The enthusiasm witnessed at events like the Cambodia workshop is just the first step. The real test lies in translating this enthusiasm into tangible improvements in government services and citizen experiences. As we stand at this technological crossroads, one thing is certain: the future of e-government is exciting, and it’s powered by blockchain and AI.

 

Source: https://www.techopedia.com/blockchain-ai-in-government

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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4 Bitcoin Catalysts That Will Shape the Crypto Market in 2024

4 Bitcoin Catalysts That Will Shape the Crypto Market in 2024

Bitcoin, the world’s leading cryptocurrency, has been on a remarkable rally since late 2023, reaching new highs and attracting widespread attention.

But what are the main factors driving its price and performance in 2024?

In this article, intergovernmental blockchain expert Anndy Lian will explore four potential catalysts that could have a significant impact on Bitcoin’s future — the impact of spot BTC exchange-traded funds (ETFs), the upcoming Bitcoin halving, the June quarterly expiry of Bitcoin options and futures, and the U.S. presidential election.

Spot Bitcoin ETFs: A Game Changer for the Industry?

One of the most anticipated events in the crypto space was the launch of spot Bitcoin ETFs in the US, which began trading in January 2024. These are financial products that track the price of Bitcoin and allow investors to buy and sell shares through their existing brokerage accounts without having to deal with the complexities and risks of directly holding or storing the cryptocurrency.

The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) is seen as a major regulatory breakthrough and a validation of Bitcoin as a legitimate asset class. It is also expected to attract more institutional and retail investors into the crypto market, increasing the demand and liquidity for Bitcoin. As of the middle of March 2024, nine Bitcoin ETFs hold nearly half a million BTC.

Not everyone is optimistic about the impact of spot Bitcoin ETFs on the crypto industry. Some critics argue that these products could introduce more volatility and manipulation into the market, as well as undermine the decentralized and peer-to-peer nature of Bitcoin. Moreover, some investors may prefer to hold Bitcoin directly rather than through a third-party intermediary to enjoy the full benefits of its security, privacy, and resistance to censorship.

Bitcoin Halving: A Supply Shock or a Non-Event?

Another key event that could affect Bitcoin’s price and performance in 2024 is the Bitcoin halving, which is expected to occur next month. This is a pre-programmed adjustment to the Bitcoin protocol that reduces the amount of new Bitcoins generated per block by 50%, from 6.25 to 3.125 Bitcoins. This means that the annual inflation rate of Bitcoin will drop from about 1.8% to 0.9%, making it scarcer and more valuable.

Historically, each halving event has coincided with the beginning of a bull market for Bitcoin, as the supply reduction creates a supply-demand imbalance that drives the price up. For instance, the first halving in 2012 was followed by a 9,000% increase in Bitcoin’s price over the next year, while the second halving in 2016 was followed by a 2,800% increase over the next 18 months. The third halving in 2020 was followed by a 400% increase over the next 12 months.

Some analysts caution that the halving effect may not be as strong or predictable as in the past, as the market has become more mature and efficient, and the halving is already priced in by the rational expectations of investors. Moreover, the halving may not have a direct causal relationship with the price movements, as other factors, such as macroeconomic developments, regulatory changes, and technological innovations, may also play a role. Therefore, the halving may not necessarily trigger a new bull run but rather confirm an existing trend.

June Quarterly Expiry: A Volatility Spike or a Smooth Transition?

Another factor that could influence Bitcoin’s price and performance in 2024 is the June quarterly expiry of Bitcoin options and futures, which is scheduled for June 21, 2024. This is the date when a large number of contracts that give investors the right or obligation to buy or sell Bitcoin at a predetermined price and date expire and settle.

The expiry of these contracts could have a significant impact on the market, as investors may adjust their positions or exercise their options before or on the expiry date, creating large buy or sell orders that could move the price. Moreover, the expiry could also affect the implied volatility of Bitcoin, which is a measure of how much the market expects the price to fluctuate in the future. A high implied volatility means that the market anticipates large price movements, while a low implied volatility means that the market expects stable price movements.

Some analysts expect that the June quarterly expiry could cause a spike in volatility, as the market may experience increased uncertainty and speculation ahead of the event. This could create opportunities for traders to profit from the price swings but also pose risks for investors who are not prepared for the potential price shocks.

On the other hand, some analysts believe that the June quarterly expiry could be a smooth transition, as the market may have already priced in the event and adjusted its positions accordingly. This could result in a calm and orderly market with minimal impact on the price and volatility.

US Presidential Election: A Bullish or a Bearish Scenario?

The final event that could have a significant impact on Bitcoin’s price and performance in 2024 is the U.S. presidential election, which will take place on November 5, 2024. The election will determine the next president and vice president of the United States, as well as the composition of the Congress and the state governments. The outcome of the election could have major implications for the U.S. and global economy, the geopolitical landscape, and the regulatory environment for the crypto industry.

The main contenders for the presidency are the incumbent Democrat Joe Biden, who is running for re-election, and the former Republican Donald Trump, who is running for a second, non-consecutive term. Both candidates have different views and policies on various issues, such as taxation, trade, health care, immigration, foreign affairs, and climate change, that could affect economic growth, inflation, interest rates, and market sentiment in the U.S. and abroad.

The election could also have a direct impact on the crypto industry, as both candidates have different stances and approaches to the regulation and innovation of the crypto space. Biden has been generally supportive of the crypto industry, in my opinion, as he has expressed interest in exploring the potential of a central bank digital currency (CBDC) and fostering the development of blockchain technology.

Trump, on the other hand, has been generally hostile to the crypto industry, as he has repeatedly criticized Bitcoin and other cryptocurrencies, calling them a “scam” and a “threat” to the U.S. dollar. He has also imposed sanctions and restrictions on several countries and entities that are involved in the crypto space.

He has also expressed skepticism and opposition to the idea of a CBDC and the innovation of blockchain. However, things may be turning for Trump, who is now appearing to be warming towards Bitcoin in a recent article, saying that some regulation was likely required, but many people are embracing it, and he could “live with it one way or the other.”

The Bottom Line

Bitcoin, the world’s leading cryptocurrency, has a lot of potential catalysts that could affect its price and performance in 2024. These include spot Bitcoin ETFs, the upcoming Bitcoin halving, the June quarterly expiry of Bitcoin options and futures, and the U.S. presidential election. Each of these events could have positive or negative implications for the crypto industry, depending on how they unfold and how the market reacts.

Therefore, investors and traders should be aware of these events and their possible outcomes and be prepared for the opportunities and challenges that they may bring.

Nevertheless, Bitcoin has reached a new all-time high of over $73,000. I am still very positive about its outcome for this year.

Let’s see.

 

Source: https://www.techopedia.com/4-bitcoin-catalysts-that-will-shape-the-crypto-market-in-2024

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j