The upcoming United States election year appears poised to be exceptionally turbulent, with cryptocurrency further intensifying the excitement. Unlike previous presidential election cycles, this one prominently features politicians taking clear positions on issues related to cryptocurrency and blockchain. Donald Trump has already declared his intention to be the “crypto president,” while Democratic contenders show increased willingness to support legislation reforming crypto.
On June 24, Carole House, the architect behind President Joe Biden’s executive order aimed at establishing a regulatory framework for cryptocurrencies in the U.S., departed from her role as a crypto adviser at the New York Department of Financial Services to return to the White House. This move has been viewed as significant by many observers.
What motivates this newfound embrace of cryptocurrencies by U.S. politicians? “Strategic-minded politicians have recognized that cryptocurrency owners now constitute a significant portion—15% to 20%—of the American public. They are vying for their support by appealing to their economic interests,” explained Grant Ferguson, a political science instructor at Texas Christian University. “This mirrors their approach when discussing 401ks and other assets.”
“The reality of cryptocurrency is undeniable,” emphasized Moe Vela, an adviser to Unicoin and a former senior White House adviser under two Democratic administrations. He suggested that the rehiring of Carole House signifies the Biden administration’s acknowledgement of the pivotal role digital assets play in the economy. “Subject matter experts like House are brought in when their expertise is crucial,” Vela noted.
The cryptocurrency industry, once considered niche, is now approaching mainstream acceptance, particularly compared to the 2020 presidential election year and even the 2022 midterm elections, according to David Primo, a political science professor at the University of Rochester.
Moreover, demographic trends among cryptocurrency users align closely with those of sought-after swing voters. Recent research published in American Politics Research by Ferguson, Kathryn Haglin, and Soren Jordan underscores how the demographic profile and opinions of cryptocurrency holders are influencing politicians’ outreach strategies.
Typically, the U.S. crypto investor is a young, politically centrist male, often of Latino or African-American descent, who is likely to own stocks and is inclined towards embracing new technologies and risks. This profile makes them akin to swing voters who are crucial in elections.
Nevertheless, the durability of politicians’ current pro-crypto stance remains uncertain. “If there’s a significant downturn in crypto prices, it could lead to shifts in the positions of Trump, Biden, and others,” Ferguson cautioned. Conversely, maintaining pro-cryptocurrency policies could prove beneficial if polling data indicates support among swing state voters.
While the Trump campaign recognizes the electoral advantage of appealing to crypto enthusiasts, Vela warns against taking Trump’s newfound affinity for crypto at face value. “His past criticisms of Bitcoin could resurface if crypto loses its current appeal,” Vela cautioned.
The potential for using crypto in campaign financing may further solidify its political significance. “As long as cryptocurrencies hold value, American politicians will seek to capitalize on them,” remarked Ciara Torres-Spelliscy, a law professor at Stetson University College of Law.
There are intriguing nuances to this growing affinity for crypto among lawmakers. Some observers speculate that politicians are using crypto as a diversionary tactic during this election season. Representative Matt Gaetz’s recent embrace of Bitcoin coinciding with ethics inquiries underscores this possibility.
Regarding the broader implications, Torres-Spelliscy highlighted that the outcomes of the upcoming U.S. elections could significantly impact the legal landscape for technologies like crypto and blockchain. “A unified Congress and presidency could pass laws that either foster or hinder these innovations,” she noted.
“If candidates secure electoral victories in part due to support from cryptocurrency owners, they may be inclined to implement policies favorable to investors and technology innovators,” Ferguson added.
Ultimately, the current embrace of cryptocurrency by politicians transcends mere transactional politics. “It represents a movement—a call from millions who have felt excluded from the traditional financial system and seek a more accessible, digital, and inclusive alternative,” concluded Vela.