As the world waits with bated breath for the outcome of the US election, the crypto community is abuzz with speculation about what the results might mean for the industry. Will a Trump or Harris victory lead to a surge in institutional adoption, or will it slow down the pace of progress? In this article, we’ll delve into the views of experts from various sectors and examine the potential implications of each outcome.

The Election’s Impact on Crypto Adoption

While some are concerned that the election results might derail the growth of crypto and blockchain technology, many experts believe that the adoption of digital assets at the institutional level will continue regardless of who wins. Phillip Shoemaker, executive director of Identity.com, a non-profit organization providing decentralized identity verification, is one such expert.

A Trump Win: A Boost for Crypto?

Shoemaker believes that a Trump victory would be positive for crypto prices in the short term. He thinks that a flurry of new ETFs would emerge in the US, allowing for a wider variety of digital assets to be traded. Additionally, he expects an acceleration in the use of stablecoins for payments and more corporations incorporating digital assets into their strategies.

A Harris Win: A Slower Pace of Adoption

On the other hand, Markus Levin, co-founder of XYO Network, the world’s first blockchain geospatial oracle network, thinks that a Harris victory would slow down the pace of adoption. He believes that a more restrictive regulatory regime would hinder institutional investment in crypto.

Regulatory Clarity: A Key Factor

Large institutions crave regulatory clarity, and a Harris administration might create uncertainty around how they feel about crypto. This could make them cautious about their exposure to the industry. Brian Dixon, CEO of Off the Chain Capital, notes that institutional investors are particularly sensitive to regulatory clarity.

The Bigger Picture: Blockchain Technology’s Role

While many are focused on the short-term implications of the election results, it’s worth noting that the digital assets industry has continued to advance despite turbulent market conditions and regulatory roller coasters. The value of crypto to "bank the underbanked" continues to drive innovation in providing better financial services to those who otherwise wouldn’t have access to them.

The Decentralized AI Society’s View

Michael Casey, CoinDesk’s former chief content officer and now chairman of The Decentralized AI Society, believes that these shorter-term fixations on the market miss the bigger picture. He notes that blockchain technology should occupy a central place in the evolution of technology impacting our lives.

Swift, UBS, and Chainlink: A New Partnership

In the midst of election-related uncertainty, several positive developments have taken place this week. Swift, the TradFi interbank messaging system, partnered with UBS and Chainlink to test allowing digital asset transactions to settle with traditional financial institutions. This partnership marks a significant step towards mainstreaming crypto.

A Softening Stance on Crypto among Democrats

Recently, there has been a shift in sentiment among Democrats regarding crypto. While Gensler’s tough stance remains a question mark for the party, even Democratic crypto voters are calling for his replacement. This softening of stance might lead to a more favorable regulatory environment for institutions.

The Current Market Data Suggests…

According to Brian Dixon, CEO of Off the Chain Capital, institutional investors are particularly sensitive to regulatory clarity. A Harris administration would need to change its historical stance to provide the predictability they seek.

Institutional Adoption under a Harris Administration

Dixon believes that institutional adoption under a Harris administration could follow a more conventional path, with an emphasis on compliance and integration with existing financial infrastructure.

The Impact of Trump’s Endorsement

It wasn’t until recently, after Trump’s endorsement of the industry this year, that sentiment among Democrats started to shift slightly. This endorsement has led to a softer stance on the sector from some Democratic leaders.

Conclusion

While the election results might create uncertainty around crypto adoption in the short term, it’s essential to remember that the digital assets industry has continued to advance despite turbulent market conditions and regulatory roller coasters. The bigger picture is that blockchain technology should occupy a central place in the evolution of technology impacting our lives.

As we wait for the outcome of the US election, it’s crucial to keep things in perspective. Regardless of who wins, institutional adoption will likely continue to grow. The real question is: how quickly and at what pace?