This election year in the United States appears to be one of the most tumultuous in recent history, with cryptocurrency adding a new layer of excitement to the political landscape.
Unlike past presidential elections, this cycle features politicians taking firm positions on issues related to cryptocurrency and blockchain. Donald Trump has boldly declared himself the “crypto president,” while within the Democratic camp, there’s growing support for legislative reforms in this arena.
Carole House, who authored President Joe Biden’s executive order to establish a regulatory framework for cryptocurrencies in the U.S., made headlines on June 24 by leaving her role as a crypto advisor at the New York Department of Financial Services to rejoin the White House. This move is seen by many as significant.
What’s behind this newfound embrace of cryptocurrencies by U.S. politicians? According to Grant Ferguson, a political science instructor at Texas Christian University, it’s strategic thinking. Politicians have recognized that cryptocurrency owners now constitute 15% to 20% of the American public and are actively courting their votes by appealing to their economic interests, much like they would with issues such as 401ks and other assets.
Moe Vela, an advisor to Unicoin and a former senior White House advisor, views the rehiring of House as a clear signal that the Biden administration acknowledges the importance of digital assets and their impact on the economy.
The cryptocurrency industry itself is increasingly perceived as mainstream. According to David Primo, a professor of political science at the University of Rochester, it’s now more organized than during previous election cycles.
Another factor at play is the alignment of cryptocurrency user demographics with those of sought-after swing voters. Research by Ferguson, Kathryn Haglin, and Soren Jordan, published in American Politics Research, suggests that the demographic profile and opinions of cryptocurrency owners are influencing politicians’ strategies.
The typical U.S. cryptocurrency investor is often a young, politically centrist male, frequently Latino or African-American, who also invests in stocks. This demographic tends to be more open to new technologies and risks, resembling a swing voter whose allegiance can shift.
However, the durability of politicians’ current enthusiasm for cryptocurrency remains uncertain. As Ferguson points out, shifts in cryptocurrency prices could influence the stances of figures like Trump and Biden. Nonetheless, if appealing to cryptocurrency owners proves advantageous in key swing states, politicians may maintain their pro-cryptocurrency policies through the election and beyond.
While Trump’s campaign acknowledges the electoral benefits of winning over crypto voters, Vela cautions against taking Trump’s newfound support for crypto at face value, citing his previous fluctuations in stance on Bitcoin and the sector.
The ability of cryptocurrency to fund political campaigns may further solidify this relationship. According to Ciara Torres-Spelliscy, a law professor at Stetson University, American politicians will likely continue to embrace crypto as long as it holds value.
There are also claims that some lawmakers are using cryptocurrency as a distraction tactic during this election season. Representative Matt Gaetz’s recent endorsement of Bitcoin coinciding with ethics investigations is cited as an example. Vela warns that any attempts to exploit cryptocurrency for divisive purposes could backfire electorally.
Overall, the upcoming U.S. elections could have profound implications for the global future of crypto and blockchain. The composition of the presidency and Congress will heavily influence the legislative landscape, potentially either fostering or hindering technological innovations like cryptocurrency.
In conclusion, politicians across the spectrum are jumping on the crypto bandwagon because they recognize it as more than just an alternative financial system—it represents a movement championed by millions seeking a more accessible, digital, and inclusive financial future.