Cryptocurrency demand increases due to US presidential election
On Monday, October 14th, US Vice President Kamala Harris outlined her Opportunity Agenda for Black Men and gave assurances to crypto investors. The agenda stated:
“Support a regulatory framework for cryptocurrencies and other digital assets to ensure that Black men who invest in and own these assets are protected. She will ensure that digital asset owners and investors benefit from a regulatory framework that protects black men and other participants in the market. ”
A regulatory framework that fosters innovation while protecting retail investors would be a boon for the cryptocurrency industry. Importantly, regulatory clarity could eliminate the SEC's enforcement-driven regulatory approach.
Kamala Harris' victory could lead to crypto regulation. Conversely, a victory for Donald Trump could lead to the firing of SEC Chairman Gary Gensler. In July 2024, President Trump famously announced that he would fire Gary Gensler on his first day if re-elected.
According to betting platform Polymarket, the probability of Trump winning the US presidential election has increased from 54.7% (October 14th) to 59.9% (October 19th).
As the U.S. presidential election approaches, polls and betting odds may come under intense scrutiny from investors. Despite Kamala Harris' recent endorsement of cryptocurrencies, Trump remains the preferred figure in the crypto market.
SEC appeal in Ripple case adds uncertainty to XRP
On October 17, the Securities and Exchange Commission (SEC) filed a civil pre-appeal statement (Form C) and addendum in SEC v. Ripple.
Speculation that the SEC may have missed the October 16 deadline briefly raised hopes that the agency would not be able to move forward with the appeal. But lawyers for crypto advocates cited uncertainty and said the appeals court has given federal agencies more leeway in terms of deadlines for court filings.
Notably, the SEC disagrees with the following ruling:
- Ruling on programmatic sales of XRP.
- Aided and abetted by Brad Garlinghouse and Chris Larsen.
- XRP offers and sales by Chris Larsen and Brad Garlinghouse.
- XRP distribution.
The ruling regarding XRP's programmatic sales is the most significant for XRP and the broader crypto market. A reversal could lead to the delisting of XRP by U.S. cryptocurrency exchanges, which could negatively impact XRP adoption and price trends. Uncertainty over the appeal has left XRP behind the broader crypto market. From Monday, October 14th to Saturday, October 19th, XRP rose 2.76% to $0.5467.
