Vice President Kamala Harris expresses support for AI and crypto, which could significantly influence stock movements.
Vice President’s Strategy to Attract Young Voters
Kamala Harris, the incumbent Vice President and Democratic nominee, has positioned herself as a strong supporter of cryptocurrency and artificial intelligence. This strategic shift aims to engage younger pro-crypto voters. It contrasts sharply with President Biden’s approach, which involved signing an executive order to implement new federal regulations for AI.
Commitment to Innovation
During a recent fundraising event at Cipriani Wall Street, Harris articulated her vision. “We will partner together to invest in America’s competitiveness, to invest in America’s future. We will encourage innovative technologies like AI and digital assets while protecting our consumers and investors,” she stated. This pledge signals a renewed focus on fostering technological advancements in the U.S.
Bipartisan Support for Crypto
Harris’s pivot has gained attention, especially as it aligns with former President Donald Trump’s long-standing advocacy for cryptocurrency. Trump has expressed his intent to remove the current SEC Chair, Gary Gensler, if he regains the presidency. This rare point of agreement between the Democratic and Republican parties highlights the growing significance of crypto in American politics.
Positive Reactions from the Crypto Sector
The cryptocurrency industry has welcomed Harris’s supportive stance. Hayden Adams, the CEO of Uniswap, noted the importance of her remarks. “Kamala just said she will encourage innovative technologies like DIGITAL ASSETS,” he posted on X, emphasizing the positivity surrounding her comments. This endorsement comes at a time when the crypto sector is becoming increasingly influential in the 2024 presidential election.
Impact on Major Players: NVIDIA
NVIDIA Corporation (NASDAQ: NVDA) has been a crucial player in the AI market. As of the first quarter of 2024, the company held an impressive 88% share of the GPU market. With Harris’s support, analysts predict NVDA shares could rise over 15%. NVIDIA’s projected revenue for fiscal 2025 is expected to reach $125.54 billion, reflecting a year-over-year increase of 125.4%. This growth underscores the company’s pivotal role in the AI landscape.
Coinbase’s Legal Challenges
Coinbase Global, Inc. (NASDAQ: COIN), the largest U.S. cryptocurrency exchange by trading volume, has faced significant legal challenges from the SEC. Following two lawsuits in June 2023, the exchange continues to navigate a complex legal landscape. If Harris wins the presidency, she may implement favorable policies that could reshape the regulatory environment for crypto exchanges like Coinbase.
Cathie Wood’s Investment in Coinbase
Cathie Wood, founder and CEO of Ark Invest, recently made headlines with her investment in Coinbase. Wood invested approximately $2.2 million in the exchange, which now holds $67 million in COIN shares within Ark’s Fintech Innovation ETF. If Harris’s pro-crypto stance materializes, Coinbase could experience substantial growth, with earnings per share (EPS) expected to increase by nearly 200% over the next five years.
Future Outlook for Crypto and AI under Harris
The future of cryptocurrency and artificial intelligence in the U.S. may hinge on Kamala Harris’s potential presidency. Her commitment to promoting innovative technologies could lead to significant industry growth and favorable regulatory changes, attracting more investment in these sectors.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
