- The weight of cryptocurrency is growing
- The impact of cryptocurrency policy on the US presidential election
- Crypto campaign donations and US politics
- Presidential candidates’ positions on Bitcoin regulation
- How cryptocurrency sentiment could affect voting behavior
Cryptocurrency has become more than just an economic phenomenon. The intersection of cryptocurrency and politics could significantly impact the US presidential election in 2024. As digital currencies gain popularity, candidates’ positions on cryptocurrency regulation and blockchain innovation are changing dramatically.
The weight of cryptocurrency is growing
Presidential candidates starting to accept cryptocurrency donations is a sign of the growing acceptance of digital assets in the political sphere. Cryptocurrency donations are a sign of its acceptance as a weighty factor.
According to a Harris poll conducted on behalf of Grayscale in November 2023, 47% of American voters expect cryptocurrency to be part of their investment portfolio in some way. This number – combined with the approval of spot exchange traded funds (ETFs) trading Bitcoin and Ethereum – paints the future of cryptocurrency in a positive light.
As investors continue to utilize cryptocurrencies, regulatory concerns will come to the forefront, inevitably forcing presidential candidates to take notice.
The impact of cryptocurrency policy on the US presidential election
Cryptocurrency policy is an important factor in the 2024 presidential election. This is the first election in which leading candidates are widely discussing cryptocurrency.
For example, former President Donald Trump (previously known for his cryptoskepticism) is now accepting cryptocurrency donations for his campaign and has given cryptocurrency advocates a platform to voice their beliefs. This is the beginning of his efforts to recruit supporters who are against central bank digital currency (CBDC) and in favor of cryptocurrency.
Joe Biden’s campaign claims to be in talks with cryptocurrency firms to get guidance on how to “promote the crypto community and crypto policy” well. However, he has already shown himself to be an opponent of the crypto industry. But new trends in the election are forcing Biden to refocus.
In any case, the president’s acceptance of cryptocurrencies shouldn’t come as much of a surprise, given his endorsement of spot Bitcoin-ETFs in January and hints of future policies in support of cryptocurrencies. As a result, Bitcoin is now available on traditional exchanges alongside stocks and other investment alternatives.
This regulatory decision not only legitimizes crypto assets in the eyes of the government, but also makes Bitcoin more accessible than ever before. This accessibility will undoubtedly attract new investors who may vote for a president who claims to be protecting their new asset class.
Crypto campaign donations and US politics
Crypto industry donors have contributed $94 million to federal election political committees between 2023 and May 17, 2024. Some contributions are very weighty, such as the $70 million from Jeffrey Yass to the Republican Party.
Federal election law allows a campaign committee to accept: “any gift … or deposit of money or anything of value” made “by any person for the purpose of influencing any election for Federal office.” influencing any election for federal office …”
In Advisory Opinion 2014–02, the Federal Election Committee determined that Bitcoin could be classified as “money or anything of value,” so this allowed federal political committees to receive Bitcoin contributions. A political committee receiving Bitcoin must value it at market value on the day it is received and declare it as any other contribution.
Presidential candidates’ positions on Bitcoin regulation
In 2021, President Trump said Bitcoin “seems like a scam” because it competes with the dollar, calling for increased regulation of cryptocurrencies. In 2019, he tweeted, “I’m not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated crypto assets can facilitate illegal behavior, including drug dealing and other illegal activity …. “
Since then, President Trump has dramatically changed his stance on cryptocurrencies. He previously pledged to support cryptocurrency in May 2024, and on May 21, his campaign announced that it would begin accepting Bitcoin, Ethereum (ETH), and Dogecoin (Doge). At the Libertarian National Convention, he pledged to secure the future of the crypto industry, ensuring that its development and growth would take place in the US and not abroad.
President Biden’s administration has traditionally been considered indifferent to cryptocurrencies. However, the White House pushed for a 30% tax on crypto mining and passed an executive order to tighten regulation on March 22, 2022.
Its stance changed after Trump’s crypto-orientated campaign began to grow. Since then, Democratic members of Congress have voted in favor of cryptocurrencies, and the president’s campaign is seeking help by reaching out to industry insiders and crypto experts.
Robert F. Kennedy Jr.’s presidential campaign was the first to accept cryptocurrency donations, and he has pledged to protect the right of Americans to use and hold them. In addition, libertarian presidential candidate Chase Oliver also supports cryptocurrencies.
Promises to support the crypto industry could help the candidate mobilize a new voter base of young voters who are most likely to invest in cryptocurrency. In 2024, 8 million young people will reach voting age, totaling 41 million Generation Z eligible voters.
How cryptocurrency sentiment could affect voting behavior
The US Federal Reserve reported that in 2023, 7% (18 million) of US adults used or held cryptocurrency. Cryptocurrency holders feel alienated from traditional financial systems, so any candidate perceived as sympathetic to their interests could win their favor. So, Trump has a good chance of capturing their votes.
A 2024 Harris Poll conducted in developing states found that nearly half of respondents said they distrust candidates who discourage the development of cryptocurrencies, with 30% saying they would be more likely to support a candidate who is friendly to the crypto industry.
