Crypto Policy Heats Up Ahead of 2024 U.S. Elections

As the 2024 U.S. presidential race heats up, cryptocurrency has become a hot topic, marking its growing importance in U.S. politics. What began as a niche interest has evolved into a central talking point, especially as both political parties aim to attract younger voters who are increasingly engaged with blockchain and Web3 technologies.

Cryptocurrency’s Growing Role in Mainstream Transactions

Bitcoin (BTC) and other cryptocurrencies are now widely accepted as payment methods in various sectors, showcasing the growth of crypto beyond just a speculative asset. Leading companies, including Tesla and PayPal, have started accepting BTC, allowing consumers to use cryptocurrency in daily transactions. 

Meanwhile, retailers like Overstock, Shopify, and even some airlines, such as AirBaltic and LATAM, are enabling BTC payments, making crypto a more practical choice for everyday purchases. 

In iGaming, BTC and other prominent cryptocurrencies have been widely adopted as a payment method for online gambling games. Platforms like those showcased on NewsBTC’s list of the best Bitcoin casinos are game-changers as they provide a wide variety of benefits to players like anonymous play, quicker registrations, and instant payouts. These kinds of trends continually reflect an increasing trust in cryptocurrencies and highlight their value as a modern, decentralized alternative to traditional currency.

Trump’s Pro-Crypto Platform

The upcoming U.S. election could significantly shape the regulatory landscape for the crypto industry. In 2024, Donald Trump created a stir by bringing cryptocurrency into the core of his campaign. That July, he introduced updates to the Republican Party’s platform, advocating for the rights of Americans to “mine Bitcoin” and “self-custody digital assets” and supporting digital transactions without government monitoring.

Trump’s stance underscores a vision where blockchain technology and decentralized finance lead economic progress, potentially positioning the U.S. as a key player in the global crypto sector. His views resonate with a large portion of his base, especially the MAGA movement.

Shibtoshi, an anonymous figure in the Shiba Inu community and the founder of SquidGrow, interprets the MAGA movement’s interest in crypto as an extension of their commitment to economic independence, minimal government intervention, and personal financial control. Shibtoshi notes that the decentralized nature of cryptocurrencies speaks to MAGA ideals of self-sufficiency and a rejection of centralized control. For many in this group, digital assets offer an alternative to conventional financial systems and a tool for personal empowerment.

Libertarian Themes and Trump’s Appeal

The decentralized and independent aspects of crypto also resonate with libertarian principles. When Trump spoke at the Libertarian Conference, he reportedly connected with the audience by emphasizing economic freedom and the need for reduced government intervention. This all makes for a huge turnaround as Trump was once famously against cryptocurrency. 

Shibtoshi noted that Trump’s emphasis on deregulation, promoting American innovation, and limiting government overreach struck a chord with libertarians who view crypto as a tool for individual financial control. However, Trump did not delve deeply into crypto specifics, his stance on safeguarding American economic interests aligned with those who see digital assets as a cornerstone of financial independence.

Broader Implications for Crypto Policy and the U.S. Economy

At Token2049, a leading cryptocurrency conference held in Singapore in September, the U.S. presidential race’s impact on the crypto industry was a key topic. CoinTelegraph’s editor-in-chief, Gareth Jenkinson, moderated a panel discussing the potential outcomes. 

Yat Siu, chairman of Animoca Brands, speculated that a win for Kamala Harris could lead to more stringent U.S. regulations, potentially causing crypto firms to move overseas. This could be similar to the exodus of Americans to Canada after Trump’s 2016 win. However, Harris herself has seemingly flip-flopped on crypto too at times.

Some crypto figures, like Tim Draper, believe the industry is too significant to ignore, with an estimated 50 million people holding crypto wallets in the U.S. Draper argues that digital assets have entered mainstream society, making it essential for serious political candidates to consider crypto policies seriously.

While Harris has shown some interest in exploring regulatory frameworks that won’t hinder innovation, skeptics remain cautious about her stance. Charles Hoskinson, founder of Cardano, expressed concern over crypto becoming a partisan issue, noting that Trump’s endorsement might polarize the topic further. 

Charles Dray, CEO of Resonance Security, emphasized that crypto should be taken seriously as a technological advancement rather than a mere political buzzword. He believes that blockchain technology holds the potential to drive growth and should be viewed as a transformative technology rather than a campaign tool.

With record donations flowing into political campaigns from the crypto sector, bipartisan support is growing. Trump aims to position the U.S. as a crypto hub, appealing to swing voters and attracting those interested in financial autonomy. Todd Ruoff, COO and CFO of Autonomys, pointed out that crypto may influence voters in closely contested states, making it a vital issue for both parties. 

He noted the slim margins in Congress, with Democrats holding a narrow Senate majority and Republicans controlling the House by a few seats. By targeting swing states like Arizona, Nevada, and Pennsylvania, Republicans hope to gain Senate control, which would allow them to influence crypto legislation in Congress significantly.