Kamala Harris’s odds of successful the 2024 U.S. presidential election have surged to 52% whereas former President Donald Trump lags behind on Polymarket. Therefore, markets are actually extra assured on Harris’ win, which places Trump’s crypto plans in danger.
Kamala Harris Secures Lead Over Trump
At the moment, Trump’s odds have dipped to 47%, in response to Polymarket knowledge. The latest improve in Harris’s odds comes amid discussions of her potential monetary insurance policies, together with her stance on cryptocurrencies. Though she has not taken concrete steps concerning digital property, her win may have implications for the crypto area. Additionally, Trump’s bold crypto undertaking, World Liberty Monetary (WLFI) and strategic Bitcoin reserve plan could face doom.
Trump’s WLFI is positioned to supply borrowing and lending providers for cryptocurrencies on the Ethereum blockchain. The undertaking goals to compete within the decentralized finance (DeFi) sector by providing a extra user-friendly interface in comparison with current platforms.
It is going to introduce a governance token, WLFI, which will likely be non-transferable, making it distinctive amongst crypto tokens. The undertaking seeks to attract in crypto lovers by simplifying advanced DeFi processes, eradicating the necessity for intermediaries like banks, and offering a streamlined expertise for borrowing and lending.
A vital characteristic of the WLFI undertaking is that the tokens will likely be offered underneath the U.S. Securities and Change Fee’s (SEC) Rule 506(c) of Regulation D. This rule permits the sale of unregistered securities to accredited buyers, bypassing conventional regulatory hurdles.
Nevertheless, this authorized construction presents dangers, notably given the present regulatory surroundings underneath the Biden administration and SEC Chair Gary Gensler. The SEC has aggressively focused main crypto companies, together with Ripple, Coinbase, and Binance, elevating issues about potential enforcement actions in opposition to WLFI.
Hostile Surroundings for Crypto
If Kamala Harris wins the presidency, her administration may proceed the SEC’s stringent regulatory strategy. Harris’s alignment with the Democratic Celebration’s seemingly destructive stance on cryptocurrencies means that Trump’s crypto undertaking could face vital hurdles. Additionally, her crypto reset efforts haven’t bore any fruit.
The SEC’s continued management underneath Gary Gensler, or an identical determine, may result in elevated scrutiny and regulatory actions in opposition to WLFI. The issues may escalate given the undertaking’s reliance on the sale of unregistered securities.
Whereas Trump has floated the concept of making a Bitcoin strategic reserve if re-elected, the dream would by no means come true because the Harris marketing campaign has not promised any such initiative. Furthermore, lately, in the course of the SEC political crypto bias listening to on September 18, Democrats deemed the FIT21 and anti-SAB 121 payments as “dangerous” and MAGA-driven.
The newest statements rightly recommend that the Democrats are nonetheless hostile towards crypto. Nonetheless, Ripple CLO Stuart Alderoty is optimistic on the way forward for crypto no matter who wins the elections. Nevertheless, even when Harris doesn’t crack down on different crypto entities, Trump may nonetheless be an exception.
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