Crypto Entering Electoral Politics Spells Trouble for Bitcoin Prices
For over a decade, cryptocurrencies like Bitcoin managed to avoid becoming political issues. However, things seem to be changing as crypto enters electoral politics. This has negative implications for token prices, given the current polarization of American politics.
Before the token crash last year, both Democrats and Republicans showed growing support for crypto. Bipartisan draft bills sought to clarify how federal agencies should treat tokens, with some industry players hoping for more regulatory certainty in this area. However, recent political developments have cast doubt on the possibility of a coalition building around crypto.
The 2020 presidential election cycle saw both parties adopt a hostile stance towards each other, with little common ground on any issues. This further highlights the importance of regulatory clarity for cryptocurrencies, as it may be the only way to attract bipartisan support in the future. Unfortunately, given the current state of politics, such clarity may be unlikely to materialize anytime soon.