Today’s vote may set the future regulatory tone for crypto in the United States, with industry leaders divided on which administration would better support growth.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
4 mins read
In a high-stakes statement on US Election Day, Cameron Winklevoss, co-founder of the Gemini cryptocurrency exchange, urged Americans to support former President Donald Trump, claiming that policies under the Harris-Biden administration have burdened the crypto sector with $500 million in legal fees.
In a tweet posted before the election, Winklevoss claimed that these costs could escalate further if Kamala Harris were elected. In contrast, he painted Donald Trump as the pro-crypto choice, urging industry advocates to vote for him if they want to see these regulatory pressures ease.
The Harris-Biden Administration has cost the crypto industry $500 million in legal fees. Vote Trump and this goes to $0. Vote Harris and this will balloon to $ billions. Choose wisely.
— Cameron Winklevoss (@cameron) November 5, 2024
The $500 million legal costs cited by Winklevoss reflect the collective legal expenses incurred by multiple crypto firms battling the US Securities and Exchange Commission (SEC) and other regulatory agencies.
Over recent years, agencies like the SEC and the Commodities Futures Trading Commission (CFTC) have aggressively pursued crypto companies, with lawsuits alleging securities fraud and other violations. High-profile companies, including Coinbase, Binance, Kraken, Ripple, and Winklevoss’s own Gemini, have all faced legal action, with cases that have stretched on for years, driving up costs for legal teams and compliance.
This heightened scrutiny of crypto assets began with the SEC’s Chairman, Gary Gensler, who took office under the Biden administration. Gensler has been vocal about his concerns regarding digital assets, emphasizing the need to protect American investors from what he calls “unregistered securities.”
However, the crypto community has argued that regulatory agencies have been overly punitive, targeting companies without clear legal frameworks for operating in the US. The Winklevoss brothers and other industry advocates see the SEC’s action against the industry as attempts to stifle innovation in the crypto market.
Due to the perceived threats to crypto innovation, prominent players in the industry are now circling around Trump, who has increasingly positioned himself as an ally to the crypto sector.
Earlier this year, he pledged to make the US a global crypto hub, vowing to end what he calls the “persecution” of the industry by federal regulators. Speaking at a crypto-focused event in Nashville in July, Trump expressed his commitment to fostering a favorable environment for digital assets in the United States.
“Sadly, we see the attacks on crypto,” Trump said, claiming that these actions are part of a broader agenda. “They’ve done it to me,” he added, alluding to his own battles with regulatory agencies.
Trump’s proposals to support crypto include the potential for tax relief on digital asset gains. To attract more investors in the US, he suggested a tax-free environment for Bitcoin gains, which has attracted backing from some industry heavyweights, such as Michael Saylor of MicroStrategy and Ripple CEO Brad Garlinghouse. This stance, combined with Trump’s direct engagement with NFTs, has made him the preferred candidate among some crypto industry players.
Harris, in contrast, has announced support for crypto but adopted a more cautious approach to the industry. While she has not made explicit promises to limit regulatory pressures on the sector, she has garnered support from high-profile tech industry figures, including Chris Larsen, Ripple’s co-founder, who donated $1 million to her campaign. Larsen’s support signals a nuanced divide in the industry, where some see Harris’s broader support for tech regulation as preferable for long-term stability.
Harris’s campaign has also benefited from endorsements from major California tech executives, including Box, Yelp, and Snap Inc. leaders, who value her balanced approach toward technology and data privacy issues. While this support may reflect confidence in her tech stance, it has yet to translate into a clear direction for the crypto sector.
As both candidates rally last-minute support, the stakes for crypto firms and advocates remain high. Trump’s promises have won him endorsements from several crypto leaders, while Harris’s more reserved stance has left many in the sector unsure of her administration’s potential impact. Ultimately, today’s vote could shape the regulatory landscape for the industry in years to come.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
