Written by: Jillian Godsil
Translated by: Bai Hua Blockchain
What was once a fringe interest of tech enthusiasts has now become a key topic, especially as both parties increasingly seek to align themselves with Web3 and blockchain technology among the growing pool of young voters.
Donald Trump, known for his unique policy style, has sparked attention by incorporating cryptocurrencies into his campaign platform.
In July 2024, he amended the official Republican platform to include the "right to mine Bitcoin" and "self-custody digital assets," boldly advocating for "unregulated transactions."
Trump's stance on cryptocurrencies indicates that he is optimistic about blockchain technology and decentralized finance becoming the future of the global economy.
Anonymous whale Shibtoshi, from Shiba Inu and the founder of SquidGrow, believes that many "Make America Great Again" (MAGA) movement supporters, in addition to Trump, have shown a strong interest in cryptocurrencies, stemming from their shared beliefs in economic freedom, distrust of centralized systems, and desire for financial independence.
"Many MAGA supporters see cryptocurrencies as tools aligned with their values: they empower individuals, transcend the workings of traditional financial institutions, and provide a way to resist government intervention," Shibtoshi said.
The MAGA community's enthusiasm for cryptocurrencies is also closely tied to the 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 the traditional banking and government-controlled financial system.
For MAGA supporters, cryptocurrencies symbolize their broader political ideals - breaking down bureaucratic regulations, reducing reliance on traditional gatekeepers, and returning power to the people.
Shibtoshi listened to Trump's speech at the Libertarian Convention and believes that Trump established a strong connection with the audience by emphasizing themes that deeply resonate with libertarianism, such as economic freedom, reduced government intervention, and individual empowerment.
"Trump's focus on deregulation, reducing government interference, and promoting American innovation struck a chord with libertarians, who see cryptocurrencies as a tool to achieve financial independence. Although he did not delve deeply into the specifics of cryptocurrencies in his speech, his emphasis on protecting American economic interests and ensuring the US remains a leader in financial innovation helped him connect with those who view digital assets as a key part of this vision," Shibtoshi said.
Then, at the renowned cryptocurrency conference Token2049 held in Singapore in September, CoinTelegraph editor-in-chief Gareth Jenkinson moderated a panel discussion on the potential impact of the US presidential election on the crypto industry.
Guests such as Animoca Brands chairman Yat Siu shared their intuitive views on the candidates. Siu stated, "If Harris wins, it may be detrimental to the crypto industry in the US but beneficial globally." He pointed out that if regulations tighten, many crypto companies may relocate to Europe or Asia. He added, "It's like how Americans moved to Canada after Trump's 2016 victory," hinting at the potential for a brain drain and loss of innovation.
Venture capitalist and long-time Bitcoin supporter Tim Draper was also outspoken on the matter. When asked whether cryptocurrencies are truly on the US political agenda or just a distraction, Draper responded, "There are 50 million people with crypto and Bitcoin wallets, and politicians should pay attention to that."
He believes that cryptocurrencies have transcended the realm of speculative investment and entered the mainstream, making it impossible for any serious candidate to ignore this trend.
While Kamala Harris is not as vocal on cryptocurrency issues as Trump, her campaign team has made late-stage attempts to attract the crypto community. Her team has expressed a willingness to explore regulatory frameworks that do not stifle innovation, but many remain skeptical about her sincerity.
Cardano founder Charles Hoskinson expressed concern that cryptocurrencies are being used as a tool for partisan debates. "Trump is rolling out a DeFi app, and that scares me because anything Trump does will be vehemently opposed by the left," Hoskinson said, "He has turned what should be a non-partisan issue into a partisan one."
This sentiment was echoed by Charles Dray, founder and CEO of Resonance Security. He said, "Cryptocurrencies should be discussed as a technological issue, but now they have become a tool of distraction because some see them as a buzzword for campaigning. In reality, cryptocurrencies - or what I prefer to call blockchain technology - are a foundational building block that will drive growth and innovation alongside traditional and emerging technologies. They should be treated as technology, not as a buzzword."
With campaign donations reaching new highs and gaining increasing bipartisan support, cryptocurrencies have become a central topic of policy debates. Both candidates recognize the potential of cryptocurrencies, with Trump even aiming to position the US as a global cryptocurrency hub.
Todd Ruoff, Chief Operating Officer and Chief Financial Officer of Autonomys, believes that the crypto industry plays a crucial role in attracting swing voters, making cryptocurrencies an unavoidable issue in hotly contested states.
He said, "The Democrats barely control the Senate with 51 out of 100 seats, while the Republicans have a slim majority in the House with 222 seats to 213. The Republicans hope to control the Senate by targeting key swing states like Arizona, Nevada, and Pennsylvania, which would allow them to influence cryptocurrency legislation in Congress, either promoting or blocking relevant bills, and have a say in judicial appointments."
"Furthermore, multiple political action committees (PACs) are deeply involved in key Senate primaries and general elections in critical states, demonstrating the growing influence of the crypto industry in US politics. Committees like Fairshake PAC have raised over $102 million, in addition to donations from Coinbase and Ripple, accounting for nearly half of all corporate campaign contributions this year."
Ruoff stated, "In addition to the presidential race, crypto-focused political action committees are also targeting state-level congressional elections, particularly in key swing states."
Trump's Crypto Ambitions: Bold Action or Gimmick?
Trump's embrace of cryptocurrencies is not without critics. Some believe his moves are strategically aimed at attracting the growing and passionate voter base, but there are also skeptics like Anthony Scaramucci, the founder of SkyBridge Capital and a former Trump ally. Scaramucci recently described Trump's cryptocurrency projects as "a campaign fundraising strategy" and hinted that it may even be a pump-and-dump scheme. He believes that Trump's newly launched decentralized finance project, World Liberty Financial, may be more focused on profitability than policy.
World Liberty Financial, launched in September 2024, has generated buzz in the crypto community. The project promises a decentralized lending platform, but early reports showed that 70% of the Tokens were initially allocated to insiders, raising questions about transparency. Although the percentage was later reduced to 20%, the damage was done, and many are skeptical about whether the platform is more focused on financial gains than technological innovation. The primary driver behind this project is the controversial figure Chase Herro, whose complex past further fuels the scrutiny.
Although there are doubts about Trump's sincerity, Draper believes that Trump's actions may help the United States regain its competitive advantage in the cryptocurrency field. When asked whether Republicans other than Trump are also enthusiastic about cryptocurrencies, Draper replied: "People from all parties have cryptocurrencies. I think it transcends traditional political boundaries."
Dan Weinberger, CEO of Morpheus.Network, believes that cryptocurrencies have evolved from a niche topic to a key component of global financial discussions.
He said: "The crypto issue in the 2024 US presidential election shows how far we have come. The focus of both parties on blockchain technology and digital assets highlights the need to establish a clear regulatory framework that can promote innovation and ensure security. For the crypto industry, this is a critical moment, and the decisions made in the coming years will determine whether the United States can maintain its leadership in the digital economy or be surpassed by regions that are more open to technological progress."
Harris and the Democratic Party: Too Late?
Kamala Harris has recently tried to interact with the crypto community, but her response seems slow and lacking in foresight. Her team appears to have rushed to respond after Trump embraced this technology. But Draper warns that if the Democratic Party does not take a clear and supportive stance, they may lose their advantage.
"I think politicians can't ignore cryptocurrencies," Draper said. "Within ten years, Bitcoin will become the dominant global currency. The policies of the next ten years will determine whether the United States can maintain its leadership position."
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, earning the resentment of many in the crypto community. As Yat Siu and other panel members of Token2049 pointed out, Harris's presidency may be seen as "anti-venture, 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 US crypto industry and has suggested some key changes to help the US regain its leadership in this field. He suggested "allowing airdrops," noting that many innovations are currently geographically restricted due to the US's restrictive regulations. Draper also advocates simplifying the tax policy by allowing crypto companies to pay taxes in cryptocurrencies and eliminating capital gains tax on crypto transactions. He believes these measures can unlock the tremendous growth potential of the US market.
The Role of the SEC: Confusing and Restrictive?
One of the main obstacles to the development of the US crypto industry is the stance of the Securities and Exchange Commission (SEC). Draper is blunt about this:
"Their approach is confusing. In the past, they were very enthusiastic in their support for an important 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 believe the SEC's inconsistent actions are stifling innovation and pushing businesses towards 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 growing rapidly. As cryptocurrencies become more widespread, more and more people are passionate about financial freedom, innovation, and decentralized finance, and this community is becoming an important group that candidates cannot ignore."
With only a few weeks until the US presidential election, the future of cryptocurrency regulation remains uncertain. Both Trump and Harris are vying for the crypto vote, but it remains to be seen whether any candidate can offer a consistent and supportive policy.
Currently, as Draper vividly puts it, "50 million wallets are crucial in this election, as this election may be decided by just 10,000 votes."
