Can Crypto Sway the U.S. Election?

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It seems clear that the statement is affirmative: Yes, elections often come down to money and mobilization more than just ideas. This is a characteristic of our current political climate. Politicians can be swayed or even significantly influenced, if not directly bought, and this election cycle represents a first for the crypto industry – they now have a well-funded, coordinated lobby advocating for their interests. As per followthecrypto.org, crypto-centric Political Action Committees (PACs) have amassed $183 million to impact the 2024 elections. Notably, tech giants from Silicon Valley are taking advantage of this moment to shape forthcoming policies on digital assets and artificial intelligence by utilizing their resources and influence.

Donald Trump, the Republican candidate, has expressed approval for these initiatives, vowing robust backing for the cryptocurrency sector. His plans encompass restructuring U.S. energy policy to make America a dominant player in Bitcoin mining, discontinuing “Operation Chokepoint 2.0,” replacing Gary Gensler as SEC Chair, and even establishing a national strategic Bitcoin reserve. The crypto industry has shown great interest, funneling funds into his election campaign. It remains uncertain whether he will fulfill these pledges in the future.

On the Democratic party front, the nominated candidate hasn’t said much about cryptocurrency, but the current administration’s tough stance on the industry has raised doubts among many critics. Now, several Democrats are admitting that SEC Chairman Gensler has become a political burden, and they believe that young voters in some decisive swing states could sway the election outcome.

What’s causing crypto regulation to be such a contentious political topic? The explanation lies in a basic concept: money. It’s not just about the substantial funds being poured into this election, but also the increasing institutional interest in the sector, fueled by the introduction of Bitcoin and Ethereum Exchange-Traded Funds (ETFs). Larry Fink, Chairman and CEO of BlackRock, the world’s largest asset manager, has become a prominent figure advocating for Bitcoin and blockchain technology, highlighting their potential advantages.

The digital asset sector has undergone substantial growth, as more than 50 million citizens in the U.S. now hold cryptocurrencies.

Cryptocurrencies have traditionally held a politically charged nature, as they fundamentally question the structure of conventional, centralized economies. Key values such as decentralization, transparency, universal accessibility, independence, and control over one’s assets carry profound repercussions for various aspects of our financial dealings.

1. Politicians usually prioritize financial gains, and people often vote based on their economic self-benefits. The strong American inclination towards liberal ideologies is now meeting the struggle over the future of digital currencies. As the political landscape becomes more welcoming to reasonable regulations, a growing number of bills advocating for crypto are being discussed in Congress.

Is it feasible that this election may catapult cryptocurrency into widespread acceptance? Given the significance at play, it appears plausible. In such circumstances, voting based on a single issue isn’t illogical, particularly when one’s financial stability is at risk. However, there’s a chance this situation could resemble the typical scenario of “buying the rumor, selling the news.”

It’s important to note that the opinions shared in this article belong solely to the writer, and they may not align with those held by CoinDesk Inc., its proprietors, or associated parties.