Cryptocurrency markets soared on Monday as US presidential candidates vie to win crypto votes. Today's news is that Kamala Harris will support a virtual currency bill to “ensure digital asset owners and investors benefit from a regulatory framework.”
Although the details were unclear, sentiment was enough to push cryptocurrencies higher, with some altcoins and meme coins benefiting the most. Solana (Code: SOL) As of 5pm ET, it's up 7% over the past 24 hours. Shiba Inu (Code: SHIB) It has increased by 5.7%. pepe (Code: Pepe) rose 11.5%, Bonk (Crypto: Bonk) It rose by 10.4%.
Encryption policy discussion
Investing based on politics is usually not a good idea, but that doesn't mean politics and policy don't influence your investments. This is more evident than ever in the crypto market, where most exchanges and tokens are facing court action with the SEC at some point.
Both presidential candidates are now firmly in favor of some form of regulation of cryptocurrencies, which could open up further development and innovation in the industry. What is interesting today is that meme coins and altcoins were the quickest to react.
How regulation helps the crypto market
meanwhile Bitcoin and Ethereum Although it has received the most attention in cryptocurrencies, it is not where most of the innovation is happening. Blockchains like Solana are fast, low-cost, and process many times more transactions than Bitcoin and Ethereum combined. If there is a regulatory framework for cryptocurrencies and blockchain, perhaps these altcoins will be the scene of action.
In some ways, meme coins like Shiba Inu, Pepe, and Bonk fit this movement perfectly. They are riding on the cryptocurrency “meme” and could eventually become tokens that people trade. But simply having these tokens legal to own, whether tied to a blockchain or not, is a good start.
Where will virtual currencies go from here?
The biggest answer the cryptocurrency industry needs is clarity on what the rules are. The US SEC has acknowledged that it is not clear about what is allowed and prohibited under current securities laws, and has not even answered industry questions.
Regardless of who wins, two changes are likely to occur under the new government that takes office in January 2025. First, the SEC's leadership could change, potentially shaping the future of the industry without changing the law. Second, Congress could pass new laws that provide guardrails and clarity for the industry about what is allowed.
Either way, friendlier leadership from the White House could be a good thing for the industry, potentially allowing billions of dollars in investments that were previously forced offshore or on the sidelines.
When Bitcoin ETFs were approved, we saw a huge influx of capital into the industry, and that may also apply to companies building on well-regulated blockchains. That's what investors are betting on today, and it could help increase the value of cryptocurrencies. I think tokens with real utility are investors' best bet, but meme coins may be riding the wave longer than many observers think.
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Travis Hoium has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
“Why Crypto Price Soared on Monday and May Only Be Getting Started” was originally published by The Motley Fool
