Harris's Promise to Support Crypto Regulation Framework Sends Bitcoin Higher, but Still Lags Behind Trump

Harris's Promise to Support Crypto Regulation Framework Sends Bitcoin Higher, but Still Lags Behind TrumpBitcoin prices surged to a two-week high after US Vice President and Democratic candidate Kamala Harris pledged to support a regulatory framework for cryptocurrencies. The cryptocurrency jumped 5

Harris's Promise to Support Crypto Regulation Framework Sends Bitcoin Higher, but Still Lags Behind Trump

Bitcoin prices surged to a two-week high after US Vice President and Democratic candidate Kamala Harris pledged to support a regulatory framework for cryptocurrencies. The cryptocurrency jumped 5.6% on Monday (October 15th), before paring gains to trade at $65,696, up 2.51% at press time. Ethereum and Solana also saw gains across the board.

Harris's commitment has boosted investor optimism in the crypto market. According to a statement, over 20% of African Americans own or have owned crypto assets. Her plan aims to ensure that owners and investors of digital assets benefit from a regulatory framework, thereby protecting Black men and others within this market.

Harris's latest promise can be seen as a response to the digital currency industry. She had previously expressed her support for crypto development in late September. Along with Bitcoin's rally, the prices of companies associated with Bitcoin have also seen a rebound. As of Monday (October 14th) close, digital exchange Coinbase was up over 11%, mining company MARAHoldings rose nearly 6%, while Bitcoin bull MicroStrategy remained almost unchanged after a 16% surge on Friday.

However, despite Harris's positive stance towards the crypto industry, many analysts believe that her support levels are still below former President Donald Trump.

Noelle Acheson, author of the `CryptoisMacroNow` newsletter, commented on the recent Bitcoin rally, saying, "The move was mainly driven by the election, initially from Trump's lead in prediction markets and polls, and later from Harris's campaign's semi-supportive statements about crypto." She added, "I haven't seen details of Harris's crypto policy, but it sounds less negative than the Biden Administration."

Galaxy Research also holds a similar view. The firm pointed out that Harris's attitude towards crypto is friendlier than President Joe Biden's, but it's still far less favorable than her competitor Donald Trump's stance on the industry.

Prior to Harris's pledge to support a crypto regulatory framework, former US President and Republican candidate Donald Trump had been actively courting crypto voters throughout his campaign, engaging in several crypto-related endeavors. Trump had vowed to make the US the crypto capital of the world, advocating for decentralized finance platforms. He further solidified his place in the crypto world by launching a new NFT digital trading card series through his social media platform TruthSocial, his fourth foray into the NFT space following three previous successful releases.

In a post on X, Galaxy Head of Research Alex Thorn said, "Harris's promise will significantly improve the regulatory environment for crypto companies in the US, but she has unfavorable positions on other related issues like taxes, Bitcoin mining, and self-custody." Thorn also noted, "While Trump is undoubtedly more favorable to the industry, we're optimistic that Harris could be more supportive than Biden."

Based on current circumstances, while Harris's stance towards crypto seems more positive than Biden's, it's still less enthusiastic than Trump's. This suggests that, while Harris's commitment offers a short-term boost to the crypto industry, the market needs to pay close attention to the specifics of her policies and cautiously assess their impact on future crypto development.