Blockchain technology started as a nascent technological experiment, but it has quickly become a powerful force that could fundamentally alter whole economies. In the wake of this tectonic movement, just as atomic power sparked an arms race between nations once its might was exhibited, so too do countries scramble for mastery over crypto in response to its early adoption elsewhere. The most recent one is Vladimir Putin’s legalization of cryptocurrency mining in Russia.
Other policymaker contestants include Donald Trump, who has recently called for a strategic reserve and has been taking crypto donations for his upcoming election; Kamala Harris, seemingly pushing forward for safety and looking to curb down the crypto industry; and Narendra Modi, juggling to keep innovation and regulation. With no central authority overseeing transactions or intervening in disputes, pursuing justice in the realm of cryptocurrency is challenging. This positive approach of global leaders toward cryptocurrency justifies Cryptocurrency-focused political action committees’ (PACs) contribution in millions into politics as the 2024 US Presidential election nears.
Donald Trump: Not ‘On Thin Air’ Anymore
In 2019, former President Donald Trump struck a skeptical note on cryptocurrency, which he said is not money and has its value based “on thin air.” Throughout his administration, digital currencies came under increased regulatory scrutiny. His worries were grounded in the ability of cryptocurrencies to foster illicit activities, threaten the U.S. dollar, and displace established financial systems.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
However, in the 2024 election campaign, Trump has come out as a pro-crypto candidate. Trump has received more than $4 million in donations from digital tokens, including bitcoin, Ethereum, and X.R.P. tokens, as well as USDC and memecoins. During the second quarter, a joint fundraising committee called “Trump 47” anon amassed more than $118 million from April to June — with money going back into the coffers of both his campaign and that of the Republican National Committee.
All told, at least 19 donors from a dozen states with an array of jobs chipped in more than $2.15 million worth of Bitcoin. The White House under the Trump administration has looked to balance innovation and regulation, offering a more nuanced take on one of the most banned forms of technology in years.
Kamala Harris: ‘Crypto for Harris’
The current U.S. administration, under the Biden-Harris presidency, has been more muted about their approach to blockchain technology and seems to be weighing ways in which it benefits society but also issues surrounding fraud, market manipulation, financial crises, erasures so as to create a robust regulatory environment, for this sector of tech industry war horses.
White House officials are now talking to crypto folks in a much more direct way, for instance, holding virtual meetings alongside people like California Congressman Ro Khanna. The purpose of the meeting was to break bread between Democrats and crypto types, a crucial gathering as Kamala Harris’s campaign seeks support from this influential group. The conversations emphasized the administration’s commitment to developing policies that create consumer protections and growth in a quickly changing landscape.
Vladimir Putin: ‘Crypto has the right to exist’
Russia has now legally authorized cryptocurrency mining within the country, effective November 2024, by its Ministry of Digital Development. Only mining operations based in legal entities and individual entrepreneurs who are registered with the ministry shall be allowed to mine, although unregistered individuals may do so as well if their power use is within government-established limits. It obliges miners to report details of any mining — including type and value in digital currencies— to a government-authorized entity, which can invoke bans or restrictions on maintaining financial stability for the Russian state.
Putin quotes, “It is important for Russia not to miss the moment, set up the legal framework and regulation in a timely manner, develop infrastructure, and create conditions for the circulation of digital assets, both within the country and in relations with foreign partners.”
Narendra Modi: “The biggest strength of democracy is openness”
India should look at how Narendra Modi’s government firmly yet cautiously handles cryptocurrency. Although digital currencies were not expressly forbidden, the implementation of a 30% tax on crypto earnings reinforced an attitude toward regulations. Such high tax rates seem to be a policy aimed at reflecting the government’s concerns about potential systemic or nationwide financial risks and encouragement for anti-money laundering through cryptocurrencies. The Modi government is keen to regulate the industry and not let it become a drain on Indian foreign exchange reserves or its established financial system.
No matter what they say, Digital Currencies Are Here to Stay!
How these four leaders approach cryptocurrency demonstrates different strategies based on their political and economic goals. Vladimir Putin Ensuring Cryptocurrency Mining is Legitimate in Russia Helps Trump His Hand. On the other hand, Donald Trump has come around since being a long-time skeptic and appears to see political benefits as well as financial gains in winning support from the crypto space. One possible takeaway from the media coverage is that Kamala Harris’s moderation in regulating an industry with historical baggage represents caution and balance by focusing on consumer protection, not killing the goose-laying Golden State greenbacks. Despite high taxation from Narendra Modi, this cautious India may survive to regulate but not kill.
Regardless of these divergent tactics, it is a fact that cryptocurrency has taken the world by storm and won’t be leaving anytime soon. However, blockchain technology has become so integrated in some areas of the world that governments can hardly ignore it. Rather than trying to contain its expansion, global leaders should embrace the necessity of a holistic approach that considers both the potential and challenges caused by this transformative tech. This is the time when we are watching nations such as Russia, the U.S.A., and India choose their ways through the space of crypto, and it further substantiates how collaboration holds a key regulatory framework.
