The current U.S. election year appears set to become one of the most dynamic in recent memory, with cryptocurrencies adding to the intrigue. Unlike previous presidential races, candidates are now taking clear positions on issues related to cryptocurrency and blockchain. Donald Trump has proclaimed his intention to be the “crypto president,” while Democratic contenders show increasing readiness to back legislation reforming crypto.
On June 24, Carole House, the architect behind President Joe Biden’s executive order for establishing a regulatory framework for cryptocurrencies, left her role as a crypto advisor at the New York Department of Financial Services to return to the White House, a move seen by many as significant.
What’s motivating this newfound embrace of cryptocurrencies by U.S. politicians? “Strategic politicians have recognized that crypto owners now constitute 15% to 20% of the American public and are aiming to win their support by addressing their economic concerns,” explained Grant Ferguson, a political science instructor at Texas Christian University. “Similar to discussions about 401ks and other assets, they are appealing to voters’ financial interests.”
“The unavoidable reality is cryptocurrency,” stated Moe Vela, an advisor to Unicoin and former senior White House advisor under two Democratic administrations. Regarding the rehiring of Carole House, Vela noted, “This signals the Biden administration’s acknowledgment of the importance of digital assets and their impact on the economy.”
As politicians increasingly jump on the bandwagon, mainstream acceptance of the crypto industry seems inevitable. “Compared to previous election cycles, the sector is better organized,” observed David Primo, a professor of political science at the University of Rochester. He added, “In this election, demographics of crypto users overlap significantly with sought-after swing voters.”
Recent research published in American Politics Research by Ferguson, Kathryn Haglin, and Soren Jordan underscores this overlap. They found that “the demographics and opinions of American crypto owners are driving politicians to court these voters,” Ferguson explained.
The typical U.S. crypto investor is described as young, politically centrist, often Latino or African-American, and likely a stockholder. According to Ferguson, these individuals are “open to new technologies and risks, resembling swing voters whose decisions are not fixed.”
However, the durability of politicians’ current interest in crypto remains uncertain. “If crypto prices drop significantly, Trump, Biden, and others might alter their positions,” Ferguson cautioned. Conversely, “If polling indicates that winning over crypto owners can swing key states by a percentage or two, pro-crypto policies could persist beyond November.”
“While the Trump campaign recognizes the political benefits of wooing crypto voters, Trump’s inconsistent history with crypto should be viewed skeptically,” Vela warned. “Yet, the ability to use crypto for campaign funding suggests a lasting relationship,” noted Ciara Torres-Spelliscy, a law professor at Stetson University College of Law.
The intersection of crypto and politics has led to intriguing developments. Some suggest that lawmakers are using crypto as a distraction this election season. Representative Matt Gaetz’s recent embrace of Bitcoin amid ethical investigations exemplifies this trend.
Vela expressed concern: “Politicians using crypto to divide or intimidate voters will face consequences at the ballot box.” He emphasized that ignoring crypto’s origins and appeal risks political alienation.
“Candidates, especially older ones, are eager to court younger voters,” Torres-Spelliscy observed. “Promoting crypto may be a cynical strategy to engage Gen Z.”
Ultimately, the upcoming U.S. elections could significantly influence the global trajectory of crypto and blockchain technologies. “The winners will shape laws that either foster or restrict these innovations,” Torres-Spelliscy predicted. Ferguson added, “If candidates win due to crypto owners’ support, they may adopt policies that benefit investors and tech entrepreneurs.”
“In essence, politicians are embracing crypto because it represents more than just an alternative financial system; it’s a movement,” Vela concluded. “Millions seek an accessible, digital, inclusive system.”