A range of Democrat politicians wrote a letter to the Democratic National Committee (DNC) on Friday, urging the party to pivot away from its anti-crypto policies. In the letter shared by the vice president of research at Riot Platforms Pierre Rochard on X, the Democrats advised the party to take a “forward-looking approach” to digital assets and blockchain technology.
The letter noted:
“This area [crypto and blockchain] holds immense potential for American innovation, economic growth, and financial inclusion.”
According to the letter, despite Democrats like Nancy Pelosi and Chuck Schumer supporting pro-crypto legislation, the public largely sees the Democratic party as being anti-crypto. The letter attributed this negative public perception to the current Securities and Exchange Commission’s (SEC) approach to crypto regulation through litigation.
“We believe this previous hostility does not reflect our Party’s progressive, forward-looking and inclusive values.”
The Democrats stressed that this was an opportunity for Vice President Kamala Harris, as a “refreshed” presidential candidate, to change this negative public perception.
Crypto has an outsized impact on potential electoral win
Over 52 million Americans, or roughly 15% of the U.S. population, own crypto, according to a Coinbase survey. Recent polling data also shows that around 19% of voters have purchased crypto, of which 19% self-identified as Democrats and 18% as Republicans, while the remaining are independent.
Additionally, the adoption of crypto is higher among Gen Z, Black and Latino Americans, and immigrants, all of which are key constituencies for the Democrats. Therefore, the letter noted:
“From an electoral standpoint, crypto and blockchain technologies have an outsized impact in ensuring victories up and down the ballot.”
This is especially true since crypto is “at the top of voters’ minds in swing states.” More than 20% of voters in key battleground states have declared crypto as a major issue in the upcoming November elections, the letter warned.
In light of this, the Democrats urged that it is “critical” for the party to present a “persuasive case to crypto voters.” They added that it is necessary to ensure, at the same time, that consumers benefit from “thoughtful and appropriate regulation.”
The Democrats further asserted:
“We believe this technology is non-partisan, and the Democratic Party should also champion these innovations.”
Democrats call the party to action
The Democrats suggested four clear ways for the party to change the public perception. First, the party’s platform should include “pro-digital asset” language. The language should help disseminate information about the benefits of cryptocurrencies and blockchains.
Second, the Democrats suggested that the party elect a vice president candidate with “a proven track record of engaging with digital assets.” Harris should also ensure that her running mate has a history of suggesting pro-innovation policies.
Third, the Democrats suggested the party select the successor of Gary Gensler, the chairman of the SEC, ensuring that the individual is “pro-innovation.” The Democrats noted that Gensler’s successor should have a crypto-friendly regulatory approach that would ensure U.S. competitiveness on a global scale.
Lastly, the Democrats suggested that Harris and the new SEC Chief engage with the crypto industry leaders to discuss regulatory policies.
It is worth noting that the Democrats’ letter came just prior to Gemini crypto exchange co-founder Tyler Winklevoss accusing the Biden-Harris administration of “unwillingness” to engage with the industry. Winklevoss said he and his twin, Cameron Winklevoss, were disinvited to a roundtable discussion in June after they endorsed former President Donald Trump.
Tyler Winklevoss also said that the industry should be aligned in demanding that the next SEC chair be announced prior to the November elections.