Translation: Plain Language Blockchain
Initially just a niche interest for tech enthusiasts, it has now become a key topic, especially as both parties seek to appeal to younger voters increasingly connected with Web3 and blockchain technology.
Donald Trump, known for his unique policy style, has drawn attention by incorporating cryptocurrency into his campaign platform.
In July 2024, he revised the Republican Party’s official platform to include the rights to 'mine Bitcoin' and 'self-custody digital assets', boldly advocating for allowing transactions without 'government oversight'.
Trump’s stance on cryptocurrency indicates his high hopes for blockchain technology and decentralized finance to become the future of the global economy.
Anonymous whale Shibtoshi, from Shiba Inu and founder of SquidGrow, believes that many supporters of the 'Make America Great Again' movement show strong interest in cryptocurrency, stemming from their shared belief in economic freedom, distrust of centralized systems, and desire for financial independence.
“Many supporters of 'Make America Great Again' view cryptocurrency as a tool that aligns with their values: it empowers individuals, transcends the operations of traditional financial institutions, and provides a way to resist government intervention,” Shibtoshi stated.
The enthusiasm for cryptocurrency among the MAGA community is also closely tied to broader themes of innovation and self-reliance. This group appreciates the decentralized nature of digital currencies, viewing them as a means to challenge the status quo of traditional banking and government control over the financial system.
For MAGA supporters, cryptocurrency symbolizes their broader political ideals – breaking down cumbersome regulations, reducing reliance on traditional gatekeepers, and returning power to the people.
Shibtoshi listened to Trump’s speech at the Libertarian Conference and believes Trump established a good connection with the audience by emphasizing themes that deeply resonate with libertarian values (such as economic freedom, reducing government intervention, and individual empowerment).
“Trump’s focus on deregulation, reducing government intervention, and promoting American innovation resonates with libertarians who see cryptocurrency as a tool for achieving financial independence. While he didn’t delve into the specifics of cryptocurrency in his speech, his emphasis on protecting American economic interests and ensuring the U.S. remains a leader in financial innovation helped him connect with audiences who view digital assets as a key part of that vision,” Shibtoshi stated.
This was followed by the well-known cryptocurrency conference Token2049 held in Singapore in September, where CoinTelegraph Editor-in-Chief Gareth Jenkinson hosted a panel discussion on the potential impact of the U.S. presidential election on the crypto industry.
Guests like Yat Siu, Chairman of Animoca Brands, shared their direct views on the candidates during the discussion. Siu stated, “If Harris wins, it might be detrimental to the U.S. crypto industry, but beneficial globally.” He pointed out that if regulations tighten, many crypto companies might relocate to Europe or Asia. He added, “It’s like how Americans moved to Canada after Trump’s victory in 2016,” hinting at a potential exodus of talent and innovation.
Venture capitalist and long-time Bitcoin supporter Tim Draper was also outspoken on this issue. When asked if cryptocurrency is genuinely part of the U.S. political agenda or just a distraction, Draper responded, “Fifty million people hold cryptocurrency and Bitcoin wallets; politicians should take this seriously.”
He believes that cryptocurrency has transcended mere speculative investment and entered mainstream society, making it impossible for any serious candidate to ignore this trend.
Although Kamala Harris is not as outspoken as Trump on cryptocurrency issues, her campaign team has attempted late in the race to attract support from the crypto community. Her team expressed a willingness to explore a regulatory framework that does not stifle innovation, but many remain skeptical of their sincerity.
Charles Hoskinson, founder of Cardano, expressed concern that cryptocurrency is being used as a tool for partisan debate. “Trump is launching a DeFi application, which scares me because anything he does will be fiercely opposed by the left,” Hoskinson said, “He is turning something that should be bipartisan into a partisan issue.”
This sentiment resonated with Charles Dray, founder and CEO of Resonance Security. He stated, “Cryptocurrency should be discussed in terms of technological issues, but it has become a distracting tool, as some view it as a popular buzzword for garnering votes. In reality, cryptocurrency – which I prefer to call blockchain technology – is a foundational component that will drive growth and innovation alongside traditional and emerging technologies. It should be taken seriously as technology, not as a buzzword.”
With political campaign donations reaching new highs and gaining increasing bipartisan support, cryptocurrency has become a core topic of policy debate. Both candidates recognize the potential of cryptocurrency, with Trump striving to make America a global cryptocurrency hub.
Todd Ruoff, COO and CFO of Autonomys, believes the crypto industry plays a key role in attracting swing voters, making cryptocurrency an issue that candidates cannot overlook in competitive states.
He stated, “The Democrats barely control the Senate with 51 out of 100 seats, while the Republicans hold a slim majority in the House with 222 to 213 seats. The Republicans hope to control the Senate by targeting key swing states like Arizona, Nevada, and Pennsylvania, allowing them to influence cryptocurrency legislation in Congress, pushing or blocking relevant bills while also holding sway over judicial appointments.”
“Moreover, several Political Action Committees (PACs) are deeply involved in Senate primaries and general elections in key states, highlighting the growing influence of the crypto industry in American politics. Committees like Fairshake PAC have raised over $102 million, with contributions from Coinbase and Ripple accounting for nearly half of all corporate campaign donations this year.”
Ruoff stated, “In addition to the presidential campaign, cryptocurrency political action committees are also focusing on state congressional elections, particularly in key swing states.”
Trump’s cryptocurrency ambitions: Brave action or a publicity stunt?
Trump’s embrace of cryptocurrency is not without critics. Some believe his actions are strategically aimed at attracting a growing, enthusiastic voter base, but there are skeptics like Anthony Scaramucci, founder of SkyBridge Capital and former Trump ally. Scaramucci recently referred to Trump’s cryptocurrency project as 'a campaign financing strategy' and suggested it could even be a scheme to inflate and offload assets. He believes that Trump’s newly launched decentralized finance project World Liberty Financial might be more focused on profit than policy.
World Liberty Financial attracted attention in the crypto community after its launch in September 2024. The project promised a decentralized lending platform, but initial reports indicated that 70% of its token allocation went to insiders, raising questions about transparency. Although this percentage was later reduced to 20%, the damage was done, and many doubted whether the platform prioritized financial gains over technological innovation. The main proponent behind the project is the controversial figure Chase Herro, whose complicated past has heightened external scrutiny.
Despite doubts about Trump’s sincerity, Draper believes Trump’s actions could help the U.S. regain its competitive advantage in the crypto space. When asked if other Republicans besides Trump are also enthusiastic about cryptocurrency, Draper replied, “People from all parties are into cryptocurrency. I think it transcends traditional political boundaries.”
Dan Weinberger, CEO of Morpheus.Network, believes that cryptocurrency has transformed from a niche topic into a key component of global financial discussions.
He said, “The cryptocurrency issue in the 2024 U.S. presidential election indicates how far we have come. The bipartisan focus on blockchain technology and digital assets highlights the need for a clear regulatory framework that promotes innovation while ensuring safety. This is a critical moment for the crypto industry, and the decisions made in the coming years will determine whether the U.S. can maintain its leadership in the digital economy or be surpassed by regions more open to technological advancement.”
Harris and the Democrats: Is it too late?
Kamala Harris has recently attempted to engage with the crypto community, but her efforts seem slow and lacking foresight. Her team appears to have hurriedly responded only after Trump embraced the technology. But Draper warns that if the Democrats do not take a clear and supportive stance, they may lose their advantage.
“I believe politicians cannot ignore cryptocurrency,” Draper said. “Within ten years, Bitcoin will become the world’s dominant currency. The policies of the next decade will determine whether the U.S. can maintain its leadership.”
One of the key figures shaping the Democratic Party's crypto policy is Senator Elizabeth Warren, known for her strong opposition to the crypto industry. Warren has repeatedly called for strict regulation of digital assets, which has frustrated many in the crypto community. As Yat Siu and other panel members at Token2049 noted, Harris's presidency may be viewed as 'anti-venture capital, anti-startup, anti-crypto', a stance that could drive entrepreneurs and innovators to more friendly overseas markets.
Nevertheless, Draper remains optimistic about the future of the U.S. crypto industry and suggested some key changes to help America regain its leadership in this field. He proposed 'allowing airdrops', noting that many innovations are currently geographically restricted due to the U.S.’s restrictive regulations. Draper also advocated for simplifying tax policies by allowing crypto companies to pay taxes in cryptocurrency and eliminating capital gains tax on crypto transactions. He believes these measures could unleash significant growth potential in the U.S. market.
The role of the SEC: Confusing and heavily restricted?
One of the main obstacles to the development of the U.S. crypto industry is the stance of the Securities and Exchange Commission (SEC). Draper spoke candidly about this issue:
“Their actions are confusing. In the past, they were very enthusiastic about supporting a key figure in the crypto industry, but now they are starting to hold compliant companies like Coinbase accountable.”
Draper’s criticism reflects the frustration of many in the crypto industry who feel that the SEC's inconsistent approach stifles innovation and pushes businesses toward more crypto-friendly jurisdictions.
Shibtoshi added, “The 'crypto vote' is emerging as a new force in the upcoming presidential election, although it has not yet become a dominant voting bloc, its influence is rapidly growing. As cryptocurrency becomes more mainstream, an increasing number of people are passionate about financial freedom, innovation, and decentralized finance, making this community an important group that candidates cannot afford to ignore.”
With just weeks to go before the U.S. presidential election, the future of cryptocurrency regulation remains uncertain. Trump and Harris are both vying for the crypto vote, but whether any candidate can propose a consistent and supportive policy remains to be seen.
Currently, as Draper vividly put it, 'Fifty million wallets are crucial in this election, as it could be decided by just ten thousand votes.'
