With the upcoming US presidential election, Matthew Sigel, the Director of Digital Asset Research at VanEck, stated that the current regulatory environment for cryptocurrencies in the United States is unfavorable for institutional investors. However, this situation may change after the presidential election, especially if Trump wins, as it may be more favorable for digital assets and their widespread adoption.
VanEck, a US asset management giant that supports the Bitcoin and cryptocurrency industry, first applied for a Bitcoin spot ETF in June 2018 and later named the stock symbol HODL (a term in the crypto community referring to holding cryptocurrencies for the long term without selling). So far, the fund has attracted over $529 million.
US Presidential Election Impact
Recently, Matthew Sigel, the Director of Digital Asset Research at VanEck, stated during an interview at the VanEck Southern California Blockchain Conference that the current regulatory environment in the US is creating barriers for institutions trying to enter the cryptocurrency space. However, with this year’s presidential election, this situation may change soon. He said:
“In the US presidential election in November, which will see a rematch between the Democratic candidate Biden and the Republican candidate Trump, Sigel’s words indicate that he believes Trump’s victory will be beneficial for digital assets and their broader adoption.”
On the 11th, during an interview with CNBC, Trump did express a more open stance towards cryptocurrencies. He stated that if re-elected as president, his government would not use regulatory agencies to crack down on the use of Bitcoin and other cryptocurrencies. This seemed to imply that if he were elected, the position of SEC Chairman Gary Gensler might be at risk. In addition, he also mentioned that he sees the widespread use of cryptocurrencies and is open to accepting Bitcoin as payment.
Optimistic Expectations for Increased Institutional Adoption
During the interview, Sigel also criticized the US regulatory agencies’ enforcement strategy and stricter rules for publicly traded companies, which have hindered corporate cryptocurrency transactions. This approach by the SEC and Chairman Gary Gensler has received widespread support from anti-crypto Democrats, such as Senator Elizabeth Warren from Massachusetts and Congressman Brad Sherman from California.
However, Sigel remains optimistic about the future and points out that although some financial institutions have not yet planned to include Bitcoin in their investment products, similar to stocks and bonds, he expects that as more and more companies begin to reassess the value of Bitcoin, financial advisors’ views on digital assets may change. He stated:
“In December last year, VanEck analysts estimated that the approval of a Bitcoin spot ETF, combined with the halving event, would incentivize Bitcoin to reach a peak of $160,000 in this bull market cycle.”
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