Crypto Assets industry looks forward to the US election bringing a turning point

The Crypto Assets industry is facing a severe regulatory environment while actively seeking political support to influence the upcoming US election results. There is hope within the industry to elect more crypto-friendly legislators to achieve a more favorable legal environment.

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, has a critical attitude towards the Crypto Assets industry, stating that the industry is "filled with fraud, charlatans, and scammers." Gensler emphasized that due to some crypto companies' failure to comply with relevant laws, global investors have suffered significant losses.

However, the future of Crypto Assets seems to be divided in the US political arena. Donald Trump has pledged to make America the "global Crypto Assets capital" and plans to establish a "national strategic Bitcoin reserve." This is in stark contrast to his previous skepticism towards Bitcoin. Trump has also launched a new Crypto Assets company named World Liberty Financial, stating that "Crypto Assets are one of the areas we must pay attention to."

In contrast, the current government has taken a harsher stance towards the Crypto Assets industry. Recently, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for fraud, and the founder of the world's largest Crypto Assets exchange was also punished for allowing illegal activities to occur on the platform. The U.S. Securities and Exchange Commission took a record 46 enforcement actions against the Crypto Assets industry last year.

Although supporters of Crypto Assets believe it offers a fast, cheap, and secure way to transfer funds, the number of people using Crypto Assets in the United States dropped from 12% in 2021 to 7% last year.

Crypto Assets companies are actively seeking political influence. According to reports, the industry has spent a record $119 million on political donations in an attempt to influence the upcoming election results. A research director at a consumer rights protection organization pointed out that this funding is used to support pro-Crypto Assets candidates and attack critics.

Paul Grewal, the Chief Legal Officer of Coinbase, emphasized the important position of the United States in the global development of Crypto Assets, stating: "The United States is not only an important market for Crypto Assets, but the key technologies surrounding Crypto Assets are also being developed here."

As the November U.S. elections approach, the Crypto Assets industry sees an opportunity that could change the regulatory environment. However, regulators continue to emphasize the importance of protecting investors and maintaining the stability of financial markets. The future direction of Crypto Assets development will largely depend on the election results and the subsequent policy direction.