Anthony Scaramucci, founder of SkyBridge Capital and outspoken critic of former President Donald Trump's influence on cryptocurrency, has once again raised concerns about the potential impact of a Trump victory on the industry.
What Happened: Speaking at crypto conference Token2049, Scaramucci reiterated his belief that Trump's re-election could spell trouble for the digital asset space.
"Trump is a polarizing person. He's for it," Scaramucci said, referencing Trump's vocal support for crypto. "It could touch off an avalanche of people that are against it."
Scaramucci's concerns stand in sharp contrast to the views of other industry leaders, as political allegiances within the crypto community continue to diverge.
The former White House Director of Communications also touched on the crypto stance of Vice President Kamala Harris, saying, "I'm here, but there's a group of cryptocurrency advocates, bitcoin advocates that are working alongside her to distance the Democratic Party, the future of the Democratic Party, away from Elizabeth Warren and Gary Gensler. I believe we are making progress, and I think it's going in the right direction."
While Scaramucci has endorsed Democratic nominee Kamala Harris, others have thrown their support behind Trump.
Mike Belshe, CEO of Bitgo, voiced his approval of the former president's stance on crypto regulations during the same panel.
"We do have clarity from the Trump proposals. They want to make sure we put in pro-crypto folks there," Belshe said, referring to the administration's approach to regulatory bodies like the SEC. "We have not heard the same from Harris."
Jeremy Allaire, CEO of Circle, took a more neutral stance, refusing to align with either political side. "Crypto is purple," Allaire said, hinting at the industry's bipartisan nature, a comment that drew applause from the audience.
"Technology does not care about politics," Allaire elaborted. "It doesn't matter who wins the presidential election."
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Why It Matters: As the U.S. presidential election heats up, cryptocurrency has become a central issue, with Trump leading the charge for the sector.
From launching his own DeFi project to purchasing burgers with bitcoin in New York City, Trump has embraced the industry in ways no previous president has.
Harris, on the other hand, has yet to publicly declare a firm position on crypto, though her team has reportedly engaged with key players like Scaramucci, billionaire investor Mark Cuban and Mike Novogratz, CEO of Galaxy Digital, on regulatory matters.
Despite his critique of Trump's divisiveness, Scaramucci did acknowledge the former president's awareness of the industry's significance. "Ironically, he's pulling the Democrats along into a centrist position on regulation," he said, hinting that Trump's influence may inadvertently push the Democratic party toward a more favorable stance on crypto.
Still, the panel's conversation wasn't solely about political division.
A common target emerged: SEC Chairman Gary Gensler, whose regulatory approach has been a thorn in the side of many in the crypto space. "Regulation by enforcement has not been an effective strategy," Allaire stated. "It's been a very, very destructive strategy."
As the industry grapples with an uncertain regulatory future, Scaramucci's caution about Trump's impact underscores the growing polarization within the crypto community.
With the U.S. election on the horizon, the debate over how cryptocurrency should be regulated will likely intensify, bringing the industry's political affiliations further into the spotlight.
What’s Next: The ongoing discussion about cryptocurrency's future, including regulation and adoption, will continue to evolve at events like Benzinga's Future of Digital Assets conference on Nov. 19, where industry leaders and experts will dive deeper into these pressing issues.
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