This year’s U.S. election is gearing up to be highly unpredictable, with the world of crypto adding fuel to the fire. Unlike past presidential races, politicians are now taking a clear stance on cryptocurrency and blockchain matters. Donald Trump has positioned himself as the “crypto president,” while Democratic candidates are showing more support for crypto reform legislation.
On June 24, Carole House, the author of President Joe Biden’s executive order to establish a regulatory framework for cryptocurrencies in the U.S., left her role as a crypto adviser at the New York Department of Financial Services to return to the White House. This move has caught the attention of many observers.
Why are U.S. politicians suddenly embracing cryptocurrencies? Grant Ferguson, a political science instructor at Texas Christian University, believes it’s because crypto owners make up a significant portion of the American population, and politicians are eager to secure their votes by appealing to their financial interests, similar to how they discuss 401ks and other assets.
Political strategists are realizing that addressing cryptocurrency is now a necessity for anyone seeking office in the U.S. Moe Vela, an adviser to Unicoin and a former senior White House adviser, sees the rehiring of Carole House as a clear acknowledgment by the Biden administration of the importance of digital assets in the economy.
With more politicians jumping on the crypto bandwagon, mainstream acceptance of the industry seems inevitable. The sector is more organized now than in previous election cycles, according to David Primo, a political science professor at the University of Rochester.
The demographics of crypto users align with those of sought-after swing voters, as noted by Ferguson. A recent study by Ferguson and his colleagues highlights that politicians are keen on appealing to crypto owners due to their demographics and opinions.
The typical crypto investor in the U.S. is a young, centrist male, often of Latino or African-American descent, who is also likely to own stocks. This user represents a swing voter who could sway towards any presidential candidate or even a third-party candidate.
Despite this growing interest in crypto among politicians, the durability of their support remains uncertain. Ferguson acknowledges that a significant drop in crypto prices could lead to a shift in their positions. However, if winning over crypto owners proves beneficial in key swing states, politicians may maintain their pro-cryptocurrency policies.
While the Trump campaign recognizes the advantages of appealing to crypto voters, Vela warns against taking Trump’s sudden affinity for crypto at face value. The ability to use crypto to fund campaigns may lead to a more enduring relationship between politicians and the industry.
Some critics suggest that lawmakers are using crypto as a distraction during this election season. However, Vela believes that any attempt to misuse crypto for political gain will backfire with voters.
In conclusion, the upcoming U.S. elections could have a significant impact on the future of crypto and blockchain technology globally. The winners of the presidency and Congress will influence the regulatory landscape for these technologies. Political candidates who secure victory with the support of crypto owners may be inclined to adopt policies favorable to the industry to solidify their electoral gains. Ultimately, the surge of interest in crypto among politicians reflects a broader movement of people seeking a more accessible, digital, and inclusive financial system.