VanEck says bitcoin OK even if U.S. Democrats return; altcoins at risk

An analysis said bitcoin may not necessarily face headwinds even if the Democratic Party returns to power in the United States. It argued that even if Democrats take a tough regulatory line on the broader crypto sector, bitcoin should be viewed separately from other digital assets.

Bitcoin Magazine reported on Aug. 26 that Matthew Sigel, head of digital asset research at VanEck, said in a CNBC interview that bitcoin could show a resilient trend even under Democratic rule.

Sigel stressed that bitcoin itself should be viewed separately from the trend of Democrats in U.S. politics being grouped into an anti-crypto camp. He also assessed former President Joe Biden as not being hostile to bitcoin itself, saying, "Biden was actually okay with bitcoin."

He added, "If Democrats return to power, the side where problems could arise is the rest of crypto." That means a Democratic return could weigh more on the regulatory environment for other digital assets such as altcoins than on bitcoin.

The remarks came as Republicans have criticized Democrats as an anti-crypto force. During the Biden administration, U.S. regulators filed multiple lawsuits against digital asset companies, putting strong pressure on the industry. Sigel, however, drew a line, saying that such a regulatory stance does not apply equally to bitcoin and other tokens.