As the 2024 US presidential election approaches, the cryptocurrency market, especially the meme coin sector related to the US election politics, has shown significant growth and activity. In particular, PolitiFi sector tokens, such as TRUMP, MAGA and TRUMP2024, which are closely related to former President Donald Trump, have performed very well in the market, because Trump has recently made relevant operations in the field of cryptocurrency and has received widespread support from relevant people.
Another notable trend related to this is the rapid change in the attitude of the Democratic Party and current President Biden towards cryptocurrencies. In order to win the election, the candidates have put aside their attitudes and accepted areas that they previously resisted, because the potential and strength of the cryptocurrency field are one of the forces they cannot miss.
Trump and the Republican Party's attitude towards crypto assets has taken a 180-degree turn, affecting the market
Throughout Trump's presidency, he has shown clear suspicion and distrust of cryptocurrencies. In 2019, Trump publicly stated on Twitter that cryptocurrencies such as Bitcoin are "not real money" and that their value is "highly volatile and based on air." However, since leaving the White House in 2021, Trump's attitude towards cryptocurrencies has changed significantly, and as the 2024 election approaches, Trump's attitude has changed even more significantly, a change that has not only affected his campaign strategy, but also had a profound impact on the cryptocurrency market.
1. Accepting cryptocurrency donations:
Republicans are extending a broader invitation to the cryptocurrency community, with the Trump campaign announcing it will accept cryptocurrency donations, which supporters can make through the Coinbase Commerce product.
This move shows that Trump is more actively embracing cryptocurrency and using it to attract support from young voters and technology enthusiasts. And at the luxurious dinner held at Mar-a-Lago for its NFT supporters, Trump further emphasized the importance of cryptocurrency.
2. Policy and market impact:
The shift by the Trump team is more than just symbolic. There is also a push for more friendly cryptocurrency policies within the Republican Party. Prominent Republican lawmakers such as Tom Emmer and Patrick McHenry are drafting legislation aimed at providing support for the cryptocurrency industry while limiting strict regulation by the Securities and Exchange Commission (SEC). In addition, Trump supporters such as Vivek Ramaswamy and Ron DeSantis have also promised to promote cryptocurrency-friendly policies during their campaigns.
This series of moves indicates that if Trump is re-elected, he may promote a series of policies that are favorable to the cryptocurrency industry. These policies may include the appointment of more open and supportive cryptocurrency regulators, 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 strategies and voter influence:
Trump's support for cryptocurrency is not only a policy shift, but also part of his campaign strategy. As the election season approaches, Trump has used cryptocurrency as a weapon to attack the Biden administration, accusing the current administration of taking a hostile attitude toward the cryptocurrency industry. SEC Chairman Gary Gensler has taken strict enforcement actions against several cryptocurrency companies during the Biden administration, further angering the cryptocurrency community.
At the same time, Trump's strategy also reflects the influence of cryptocurrency among voters. A survey showed that in six key swing states, more than 20% of voters considered cryptocurrency an important issue. Another national survey showed that 51% of cryptocurrency owners supported Trump, while 41% supported Biden. This political division shows that the influence of cryptocurrency among voters is gradually increasing and becoming an important issue in the campaign.
Under Trump's fierce offensive, Biden and the Democratic Party's encryption policies and attitudes are passive
Trump has used the cryptocurrency field as one of his new weapons to fight against Biden. The Biden administration's previous stance on cryptocurrencies was relatively cautious, emphasizing the protection of consumers and the stability of the financial system, and paying attention to environmental impacts. Due to the large number of users in the cryptocurrency field, Biden and the Democratic Party will certainly not give up this part of the votes. Therefore, Biden and the Democratic Party now have to follow up on this and have also shown a hint of goodwill towards the cryptocurrency field.
Faced with Trump's active operations in the field of cryptocurrency, current President Biden and the Democratic Party quickly adjusted their attitudes and policies towards cryptocurrency. A series of recent measures show the Biden administration's positive shift in cryptocurrency policy.
1. Administrative orders and regulatory framework:
In 2022, Biden issued an important executive order instructing multiple federal agencies to coordinate the development of digital asset policies. The order highlights the risks brought about by the rapid development of the cryptocurrency market, such as financial stability issues, data privacy and security issues, and environmental impacts. The Biden administration recognizes the potential risks and opportunities of digital assets and strives to ensure market stability and transparency by establishing a comprehensive regulatory framework.
To protect consumers and the stability of the financial system, the Biden administration has strengthened supervision of cryptocurrency trading platforms and service providers to ensure that these institutions comply with appropriate regulations and supervision. In addition, the Biden administration is also concerned about the impact of cryptocurrency mining on the environment and exploring how to reduce carbon footprint while supporting technological innovation.
2. Support FIT21 encryption bill:
The Biden administration announced that it would not veto the FIT21 crypto bill if it was passed, and called on Congress to work together on a "comprehensive and balanced regulatory framework for digital assets." This statement shows that the Biden administration supports the development of the cryptocurrency market while strictly regulating it.
3. Youth Voter Strategy:
In order to win the support of young voters, the Biden campaign plans to hire meme managers to try to connect with Generation Z voters by managing social media content and meme pages. This strategy shows that the Biden administration recognizes the importance of cryptocurrency and digital culture to the election and hopes to increase its electoral support by interacting with young voters.
4. Internal disagreements and coordination:
Although the Biden administration has taken a more cautious and pragmatic approach to cryptocurrencies overall, there are also different opinions within the administration. Some Democratic lawmakers, such as Senator Elizabeth Warren, are more skeptical and cautious about cryptocurrencies, emphasizing their potential risks to consumers and the financial system. However, another group of Democratic lawmakers supports a more friendly cryptocurrency policy, believing that it will help promote financial innovation and economic growth.
US policies play a key role in the direction of the crypto market, and the impact after the election is even greater
As the election season approaches, the game between Biden and Trump on cryptocurrency policy demonstrates the growing connection between politics and financial markets. Both candidates hope to win votes in this field by embracing cryptocurrencies, and this strategy has also had a profound impact on the development of the cryptocurrency market. The market has also responded quickly to the shifts in Trump and Biden's cryptocurrency policies. In particular, the PolitiFi token sector, such as MAGA coins, has soared 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.
This level of activity in the cryptocurrency market not only demonstrates investors’ high attention to political events, but also reflects the unique market mechanism and potential of cryptocurrency as a new asset class. PolitiFi tokens provide investors with a new way to invest and express political positions by combining the seriousness of political activities with the humor of meme culture.
Against the backdrop of the 2024 U.S. presidential election, the shift in Trump and Biden's cryptocurrency policies demonstrates the growing connection between politics and financial markets. Both candidates hope to win votes in this field by embracing cryptocurrencies, and this strategy has also 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.
