Will the US Election Impact Cryptocurrency Markets? Insiders Give Their Take

SINGAPORE — Cryptocurrency insiders have downplayed the potential impact of November’s U.S. presidential election on the market here in the Lion City, though some have also said former President Donald Trump is seen as more supportive of cryptocurrency.

“Between (Vice President Kamala) Harris and Trump, Trump is definitely the frontrunner from a cryptocurrency perspective,” Charles Hoskinson, co-founder of the Ethereum blockchain, told CNBC’s “Street Signs Asia” on Wednesday, on the sidelines of TOKEN2049 in Singapore, one of the world’s largest annual cryptocurrency conferences.

In July, the former president was a keynote speaker at the Bitcoin conference in Nashville, where he vowed to ensure the federal government never sells its bitcoin holdings and discussed a plan to make the United States a “cryptocurrency capital of the world.”

“But the reality is that whether the United States is in favor of cryptocurrencies or not, the world is moving forward,” Hoskinson continued, adding that authorities around the world have put in place regulatory frameworks, from Singapore to the European Union.

“As an American, it would be nice to see our country get back in the game and build things, but regardless, it’s not going to change the reality that the world is going to be decentralized,” Hoskinson said.

Anthony Scaramucci, founder and managing partner of SkyBridge Capital, a global alternative investment firm, predicted that if Harris wins the election, her handling of cryptocurrency regulation would be largely the same as Trump’s.

“I think you’ll start to see her clarify her economic policies and her position on cryptocurrency regulation and I’m very optimistic,” he said on CNBC’s “Squawk Box Asia.”

Scaramucci, who endorsed Harris in the race, also argued that while Trump has signaled he is pro-crypto, “it’s hard to know which direction he’s going to go” in office because he’s an unpredictable politician.

The Trump family recently launched a new cryptocurrency project called World Liberty Financial. The goals set by those involved in the project suggest that it will resemble a crypto banking platform.

Meanwhile, Jeremy Allaire, CEO of digital currency company Circle, said cryptocurrency regulation will not become a partisan issue in this U.S. election cycle, pointing to recent congressional support for the industry.

“Regardless of who wins the White House, Congress itself is ready to act, and there’s really interesting work being done on both sides of the political spectrum,” Allaire told CNBC’s “Street Signs Asia.” “The reason is that these are technologies that the United States needs to compete and win.”

Still, individuals and cryptocurrency companies sent more than $190 million to various candidates and PACs ahead of the election, according to Federal Election Commission data compiled by cryptocurrency and blockchain market analyst James Delmore and independently verified by CNBC.

Delmore said spending has been more balanced between the two parties than in previous cycles, but more has gone to Republican candidates and PACs that ran against Democrats this cycle.

Arthur Hayes, a prominent cryptocurrency trader and former CEO of cryptocurrency exchange BitMEX, has dismissed the idea that U.S. policy could affect global cryptocurrency markets.

“I don’t think it really matters either. Bitcoin went from zero to its current value with no clear regulation, no acceptance by governments. So why do we need it now? It doesn’t matter,” Hayes said.

– CNBC’s Zenith Wong and MacKenzie Sigalos contributed to this report.