Coinbase: Trump-Harris White House will be crypto-friendly regardless of who wins

On Thursday (August 2nd) local time, 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 towards cryptocurrencies.

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

Cryptocurrency has long been seen as a high-risk industry and has been subject to strict scrutiny from regulators, but this has changed recently. As Wall Street institutions take cryptocurrencies more seriously, U.S. regulators have approved cryptocurrency funds, increasing their mainstream appeal. Both Republicans and Democrats have begun to recognize the industry's growing influence.

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

Three major pro-cryptocurrency 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 strategic reserve asset of the United States.

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

Dan Coatsworth, 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’s position yet, but there are reports that she may take a more moderate stance than Joe Biden.”

The U.S. Supreme Court last month overturned the so-called “Chevron deference doctrine,” significantly reducing the power of federal administrative agencies to interpret the laws they enforce, which analysts believe will benefit the cryptocurrency industry.

Coinbase and the U.S. Securities and Exchange Commission (SEC) are in the midst of a legal battle. The SEC sued Coinbase in March last year, calling it an unregistered broker-dealer. Coinbase subsequently countersued in April last year.

Armstrong praised the U.S. 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.”