Coinbase: The White House will be crypto-friendly no matter who is elected

Author: Xia Junxiong; Source: Metaverse NEWS

On Thursday (August 2), Brian Armstrong, CEO of Coinbase, the largest cryptocurrency exchange in the United States, predicted that no matter which party wins, the next US government will be constructive about cryptocurrency.

Coinbase released its second quarter 2024 financial report on Thursday. The financial report showed that Coinbase's second quarter revenue was US$1.45 billion, a year-on-year increase of 104.8%, exceeding analysts' expectations of US$1.39 billion; trading income in the second quarter was US$780.9 million, and analysts expected US$745.1 million; net profit in the second quarter was US$36 million, with earnings per share of US$0.14.

Cryptocurrency has long been regarded as a high-risk industry and has been subject to strict scrutiny by regulators, but this situation has changed recently. As Wall Street institutions pay more and more attention to cryptocurrencies, US regulators have approved cryptocurrency funds, increasing their mainstream appeal. Both Republicans and Democrats are beginning to recognize the industry's growing influence.

Armstrong said in a post-earnings conference call that as an important voting group, cryptocurrency advocates are making their voices heard, and politicians from both parties have taken notice, and momentum is growing for comprehensive cryptocurrency-related legislation.

The three major cryptocurrency-supporting super PACs, Fairshake, Defend American Jobs and Protect Progress, have raised more than $230 million to support friendly candidates.

Republican presidential candidate Trump said last week that if he returns to the White House, he will ensure that the government retains 100% of its Bitcoin and will list Bitcoin as a U.S. strategic reserve asset.

Media reports that advisers to U.S. Vice President and Democratic presidential candidate Harris have also approached top cryptocurrency companies to improve relations between the two sides.

Dan Coatsworth, an investment analyst at AJ Bell, said: "Donald Trump supports cryptocurrencies, which would theoretically provide a tailwind for the industry if he wins. We don't know Kamala Harris' position yet, but there are reports that she may take a more moderate stance than Joe Biden."

The US Supreme Court overturned the so-called "Chevron deference doctrine" last month, significantly reducing the power of federal administrative agencies to interpret the laws they enforce, which analysts believe is beneficial to the cryptocurrency industry.

Coinbase and the US Securities and Exchange Commission (SEC) are in a legal battle. The SEC sued Coinbase in March last year, calling it an unregistered broker. Coinbase then launched a countersuit in April last year.

Armstrong praised the US Supreme Court's action, saying: "We view this case as a sign that the Supreme Court is skeptical of agency overreach, which is generally positive for our industry."