With the 2024 US Presidential Election coming up in the fall, digital assets and the cryptocurrency sector may have a larger role to play than during the last election. Unlike the 2020 election, this time, around 1 in 5 Americans own crypto assets of some sort, meaning that some 52 million citizens will likely be taking the presidential candidates’ stance on crypto to hear.
Whether this will be a good or bad thing for the Democrats and Republican candidates will depend on their platform. That’s why it’s a good idea to take a look at where each one currently stands when it comes to digital assets. Let’s start with Biden.
Biden’s Recent Veto
Democrats and Republicans recently had a bipartisan vote to repeal Staff Accounting Bulletin 121 (SAB 121), with a large majority in favor. SAB 121 is a controversial accounting guideline created by the SEC that critics argue will deter investment banks from providing large-scale cryptocurrency custody services.
Previously, the White House had stated that should there be a vote to repeal the bulletin, Joe Biden would veto the decision. US President Joe Biden did just that, as he vetoed the repeal on June 1, which was unsurprising considering the preemptive statement.
The veto was certainly not a positive for either the crypto sector, or the Democratic party’s position, considering the large swath of swing voters that own crypto (more on this in a bit). In almost a direct response to the veto, the next day Coinbase Exchange donated $25 million dollars to the Fairshake super PAC, which is a pro-crypto super PAC that supports pro-crypto candidates.
Fairshake doesn’t really care which side of the aisle you’re on if you’re pro-crypto, as evidenced by their donations to both Republican and Democratic candidates.
Trump’s Pro Crypto Stance
Donald Trump on the other hand, has pretty much flipped his stance on crypto, though that may not mean very much considering his recent conviction of multiple felonies.
In May, before his conviction, he remarked that, “if you are in favor of crypto, you better vote for Trump.” Also addressing the Libertarian Party convention last month, Trump told the crowd he would “keep Elizabeth Warren and her goons away from your Bitcoin.”
His campaign has also started accepting crypto donations
Crypto Could Be Key Battleground for Election Votes
With 1 in 5 Americans owning crypto, it could certainly be a key battleground for election votes in 2024, whereas it wasn’t in 2020. Surveys from Coinbase and Morning Consult revealed that 22% of respondent crypto holders identified as Democrats, 18% as Republicans, and 22% as Independents.
Swing voters in battleground states like New Hampshire, Nevada, Ohio, and Pennsylvania could certainly affect this year’s election. Morning Consult conducted a poll to assess crypto sentiment in these swing states and found that 18% of voters in these states (or 3.4 million people) hold digital assets.
Notably, a whopping 55% of those voters said that they would be less likely to vote for a candidate who stands in the way of crypto values. Cryptocurrency values include critiques of the current economic system and big business, and a related desire for a decentralized, web-based economy.
All of that entails that crypto could decide the votes of up to 1.9 million voters across these four states, which could be enough to tip the election. For example, in 2020, Biden beat Trump by only 82,000 votes in Pennsylvania and only 34,000 votes in Nevada. Each candidate’s stance on crypto could certainly swing any of these states one way or the other.
Closing Thoughts
Politician’s stances on digital assets are likely to increase in importance as mainstream adoption and acceptance of them grows over time. Already when you compare the 2020 election to the upcoming one in 2024, it is clear that crypto holders will have a large role to play in determining who may win the election.
As crypto continues to become more and more mainstream, this role will only increase, meaning that if candidates want to get as many votes as they can, they will likely need a pro and nuanced approach to the future of cryptocurrencies in the US and abroad.
