HTX Ventures: Crypto's Impact on 2024 U.S. Election Dynamics

November 5, 2024 adhigo

SINGAPORE, Nov. 5, 2024 /PRNewswire/ — HTX Ventures, the global investment division of HTX, today unveils its latest research on crypto and its impact on the much anticipated U.S. presidential election. This marks the first time that crypto has become a key issue in a U.S. election, and the report, titled 2024 U.S. Election For Crypto: A Potential Turning Point from Tight Regulation and Ban to Support and Innovation, aims to discuss the reasons behind it and analyze what crypto will potentially look like after the election.

Both presidential candidates, Donald Trump and Kamala Harris, have leveraged crypto in their campaigns to garner support from the crypto community. As the report suggests, there are four reasons that crypto has come to the center of the stage.

First of all, crypto is becoming more important to the U.S. On the one hand, no matter which candidate wins, the U.S. deficit and debt burdens are likely to go worse, and “as a decentralized and scarce asset, Bitcoin can serve as an effective tool for governments and investors to hedge against inflation and risk. In particular, it holds potential strategic significance in the face of debt and inflation pressures,” the report points out. On the other hand, stablecoins can help expand the international influence of the U.S. dollar. The growing significance leads to the second reason that the voters are more and more interested in crypto.

Thirdly, as the Biden administration implemented tight regulation on crypto, the industry now calls for a new regulatory framework which is more relaxed.

Lastly, crypto companies have become the main contributors to political donations in 2024. The report indicates that, “these funds not only influence presidential candidates’ policies but also push for congressional election strategies in favor of cryptocurrency. As a result, the crypto industry has moved from behind the scenes into the public eye, becoming a vital force in U.S. politics.”

The report then compared the two candidates’ crypto policies. Harris is expected to be more crypto-friendly than Biden. However, she has made limited statements on crypto policies, and is cautious on key issues like taxation, Bitcoin mining, and self-custody.

Trump, on the other hand, has shown strong interest in the digital asset industry, claiming that he aims to make the U.S. the “crypto capital of the planet and the Bitcoin superpower of the world”. He has proposed a series of crypto policy proposals, including creating a strategic Bitcoin stockpile, establishing a crypto Presidential Advisory Council, and barring the Federal Reserve from issuing a digital currency. The report anticipates that, should Trump win, there will be a clearer and more relaxed regulatory environment that benefits crypto startups and DeFi. Meanwhile, as Trump has promised to substantially lower U.S. interest rates if he is re-elected, the prices of crypto assets may be driven up thanks to increased liquidity.

The report also discusses the emergence of on-chain prediction markets. Compared to the centralized betting providers, they utilize smart contracts and decentralized ledgers to create transparent global markets, ensuring that these platforms are fair and tamper-proof.

Polymarket is the most successful platform in the sector, which secured 80% of the volume brought on by wagers on the U.S. presidential election. It has been adopted by multiple mainstream media outlets as an alternative news source. As a Web3 prediction market, Polymarket has surpassed its Web2 competitors and holds the largest market share, which is extremely rare. “Prediction markets’ impact has extended into various fields such as public opinion, financial hedging, and business decision-making,” the report states.

To read the full report, please visit: 2024 U.S. Election For Crypto: A Potential Turning Point from Tight Regulation and Ban to Support and Innovation

About HTX Ventures

HTX Ventures, the global investment division of HTX, integrates investment, incubation, and research to identify the best and brightest teams worldwide. With more than a decade-long history as an industry pioneer, HTX Ventures excels at identifying cutting-edge technologies and emerging business models within the sector. To foster growth within the blockchain ecosystem, we provide comprehensive support to projects, including financing, resources, and strategic advice.

HTX Ventures currently backs over 300 projects spanning multiple blockchain sectors, with select high-quality initiatives already trading on the HTX exchange. Furthermore, as one of the most active FOF (Fund of Funds) funds, HTX Ventures invests in 30 top global funds and collaborates with leading blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to jointly build a blockchain ecosystem. Visit us here.

Feel free to contact us for investment and collaboration at [email protected]

Contact Details

Ruder Finn Asia

[email protected]