How the election could reshape Bitcoin and crypto in the U.S.
10/26/2024 00:52
It's not just Donald Trump and Kamala Harris that matter for crypto this election cycle.
As we head into one of the most consequential elections in recent memory, the crypto community is closely weighing potential outcomes.
Perianne Boring, founder of the Digital Chamber, highlighted the importance of this election — not just for Donald Trump and Kamala Harris — but for the future of cryptocurrency in the United States. With races tightening across the country, particularly for key congressional seats, Boring emphasized how this election could bring about the most crypto-friendly Congress in U.S. history.
“We’ve had major setbacks over the past four years with the current administration being openly hostile towards crypto,” Boring explained on Coinage, referencing the Biden administration’s regulatory stance and the efforts of politicians like Sen. Elizabeth Warren. Warren has been one of the most vocal opponents, leading what she calls an “anti-crypto army” in Washington. But despite the political headwinds, Boring is optimistic that bipartisan support for crypto is growing.
“We saw overwhelming bipartisan support this summer with the passage of two significant digital asset bills,” she said, pointing to the broad congressional backing for legislation that would create clearer regulatory frameworks for the industry.
Boring’s perspective isn’t just limited to federal policy. She’s closely watching state-level races where crypto has become a critical issue. In Massachusetts, for instance, crypto advocate John Deaton is running against Sen. Warren, presenting a stark contrast to her anti-crypto stance. Their most recent debate featured heavyweight body blows in a heated back-and-forth.
“John Deaton isn’t backed by ‘crypto billionaires’ as Warren likes to suggest,” Boring said. “He’s been a genuine advocate for retail investors, as he demonstrated in the Ripple case where he represented XRP holders in their battle against the SEC.”
While Deaton faces an uphill battle in his race against a high-profile incumbent like Warren, Boring argues that the race is about more than winning a Senate seat. “Even if he doesn’t win, the goal is to send a message to Washington that restricting access to open-source technologies like crypto isn’t something the people will stand for,” she said.
Crypto PACs have poured significant resources into several races, including Deaton’s, but the broader trend is one of growing political awareness within the industry. “We’re seeing pro-crypto candidates running across the country,” Boring said. “In Ohio, for example, Sherrod Brown, a longtime opponent of crypto, is facing Bernie Moreno, a former crypto entrepreneur.” Boring sees Ohio as a key battleground, noting that if even a small fraction of the state’s two million crypto holders turn out to vote, it could dramatically shift the outcome. The race has seen an incredible amount of political spending, thanks in-part to pro-crypto Super PACs.
But what happens after Election Day? Boring remains optimistic about the future, regardless of who wins. “We’re well-positioned going into 2025,” she said, pointing to ongoing efforts to pass market structure and stablecoin legislation. These regulatory frameworks, she argues, would solve many of the challenges crypto businesses face in the U.S., including regulatory uncertainty and SEC enforcement actions. “If we can get market structure done, it would address probably 70% of the issues the industry is grappling with,” Boring explained.
On the presidential front, the stakes are just as high. Both candidates, Trump and Harris, have shifted their positions on crypto. Trump, who once called Bitcoin a scam, has since evolved, with his administration floating the idea of using Bitcoin to help pay down the national debt. Harris, on the other hand, has voiced support for crypto, but Boring is cautious. “We’ve seen some positive statements, but there’s no substance behind them yet,” she said, adding that the Biden administration’s track record on crypto hasn’t been promising.
As the election looms, one thing is clear: the crypto community has become a powerful political force. “The crypto voting block is now 1 in 7 likely or active voters,” Boring noted, citing a recent Digital Chamber survey. “Candidates with pro-crypto stances have a lot to gain and very little to lose.”
While the outcome of the election remains uncertain, Boring believes the future of crypto in the U.S. looks bright. “We’re going to keep fighting to ensure that the U.S. remains the global leader in this technology,” she said. Whether it’s through legislative wins in Congress or new leadership at the SEC, the battle for crypto’s future in America is far from over.