Last month, speaking to a crowd of supporters, former President Donald Trump introduced a new element to the upcoming November election and reignited the debate about the future of the digital asset industry in the U.S. by declaring, “…if you are in favor of crypto, you better vote for Trump.” This statement highlighted the growing importance of crypto as a hot-button political issue, signaling to other elected officials and candidates that they should take note.
Recent polling from DCG and The Harris Poll shows that Americans want candidates to engage more substantively with crypto. One in five registered voters in battleground states see crypto as a major issue in the upcoming election—a percentage that cannot be ignored.
Trump appears to have recognized this growing voter base. On the same day, President Joe Biden threatened to veto legislation aimed at repealing a harmful anti-crypto provision from the SEC, a promise he followed through on last week. The differing views on the future of crypto in the U.S. could significantly influence key swing states in November.
According to Invezz.com news, over 50 million Americans own crypto. Despite the growing interest and support for digital currencies, the current administration seems determined to stifle digital asset innovation and push jobs offshore. Crypto is naturally a nonpartisan issue—elected officials from both parties have found ways to embrace the technology.
Progressives, in particular, should support the decentralization aspect of crypto, which diminishes the control of Big Banks and Big Tech. However, the current administration and certain left-leaning members of Congress, including Sen. Elizabeth Warren (D-Mass.), are making it harder for the digital asset voter to find representation on either side of the aisle.
Crypto, inherently nonpartisan, has the potential to address many issues identified in the current financial system by both parties. Conservatives generally support crypto for its promise of decentralization, offering individuals autonomy over their assets without financial intermediaries or government intrusion. Progressives should appreciate crypto’s potential to counteract the power of commercial monopolies and provide lower-cost services to those underserved by the current financial system.
Crypto offers legislators a rare chance to build lasting relationships with a largely untapped voter base. Crypto users tend to be younger, diverse, and forward-thinking—traits that would seem to align them with the Democratic constituency. By engaging with crypto’s potential, Democrats could gain significant support in November.
However, the majority of the Democratic congressional caucus broadly opposes the growth of the homegrown crypto ecosystem. While there are exceptions within the party, many influential members continue to vilify the technology, often portraying the industry as an unregulated “Wild West.” This negative characterization overlooks the industry’s willingness to work with the government on consumer protection and illicit finance concerns.
Democratic thinking on crypto must evolve. Fortunately, there are early signs of change. Despite Biden’s veto, Democrats in Congress supported the repeal of SAB 121, the SEC’s anti-crypto accounting guidelines, and 71 members of the Democratic House delegation voted for the FIT21 market structure bill. These positive developments should be encouraged, alongside calls for further action.
Democrats have the chance to protect the next generation of American innovation and engage with new voters. In today’s polarized political climate, attracting an expanding community like the crypto ecosystem could be crucial for winning close elections.
The digital asset industry feels targeted and marginalized, potentially pushing it overseas and costing the U.S. its current advantages. Trump’s remarks at Mar-a-Lago should serve as a wake-up call to Democrats: Embrace crypto and its young, tech-savvy voters—or risk losing them to another candidate.
