The current U.S. election year appears set to become one of the most unpredictable in recent memory, with cryptocurrency adding an extra layer of excitement to the mix.
Unlike previous election cycles, this one features prominent politicians taking clear positions on cryptocurrency and blockchain issues. Donald Trump has positioned himself as the “crypto president,” while within the Democratic camp, there’s a growing inclination towards supporting crypto reform legislation.
On June 24, Carole House, known for authoring President Joe Biden’s executive order on establishing a regulatory framework for cryptocurrencies in the U.S., left her role as a crypto advisor at the New York Department of Financial Services to return to the White House. This move has been seen as significant by many observers.
What’s driving this newfound embrace of cryptocurrencies by U.S. politicians?
According to Grant Ferguson, a political science instructor at Texas Christian University, strategic politicians recognize that cryptocurrency owners now represent 15% to 20% of the American public. “They are vying for their votes by appealing to their economic interests, akin to how they discuss 401ks and other assets,” Ferguson explained in an interview with Cointelegraph.
Moe Vela, an advisor to Unicoin and a former senior White House advisor under two Democratic administrations, emphasized the necessity for any candidate running for office today to confront the reality of cryptocurrency. Regarding House’s reappointment, Vela noted, “It signals the Biden administration’s acknowledgment of the importance of digital assets and their impact on the economy.”
The cryptocurrency industry is now being seen as a mainstream sector. David Primo, a political science professor at the University of Rochester, noted that compared to previous election cycles, the industry is more organized. He added, “Politicians are crowding onto this bandwagon, anticipating mainstream acceptance.”
Moreover, demographics among crypto users are aligning with those of highly sought-after swing voters, as outlined by Ferguson, Kathryn Haglin, and Soren Jordan in their recent research published in American Politics Research. Ferguson pointed out, “The opinions and demographics of crypto-owning Americans are key factors prompting politicians to court these potential voters.”
The typical U.S. crypto investor is often a young, politically centrist male, frequently Latino or African-American, and likely involved in the stock market. Ferguson noted that such individuals are typically more open to new technologies and risks, resembling a swing voter whose allegiance isn’t fixed.
However, how enduring is this current enthusiasm among U.S. politicians? Ferguson raised the question, suggesting that shifts in crypto prices could influence their stances. “If winning over crypto owners in swing states proves advantageous, politicians may stick with pro-crypto policies through the elections and beyond,” he explained.
Despite Trump’s evident recognition of the political advantages of attracting crypto voters, Vela cautioned against taking his newfound affinity for crypto at face value. “If crypto loses its appeal before the election, Trump could easily revert to criticizing Bitcoin and the sector,” Vela warned.
Nevertheless, the ability of crypto to fund campaigns might ensure a lasting relationship between politicians and the sector. Ciara Torres-Spelliscy, a law professor at Stetson University College of Law, highlighted, “As long as crypto holds value, American politicians will eagerly embrace it.”
Regarding potential distractions in this election season, Vela addressed claims that some lawmakers are using crypto as a diversionary tactic. He emphasized that such tactics could backfire at the polls, suggesting that these strategies indicate a disconnect from the electorate.
Overall, Torres-Spelliscy emphasized the potential impact of the upcoming elections on crypto and blockchain technologies globally. She suggested that the alignment of presidential and congressional interests could significantly influence future laws affecting these technologies.
In conclusion, Vela highlighted that politicians are gravitating towards crypto not just as a financial system but as a movement demanding accessibility, digital innovation, and inclusivity. “It represents millions who have felt marginalized by the existing financial system,” he concluded.