Are politicians using crypto to influence US elections?

This US election year is shaping up to be one of the most volatile in recent memory, and crypto is fueling even more excitement.

Unlike previous presidential election cycles, this one will feature politicians taking positions on cryptocurrency and blockchain issues. Donald has already promised to be the “crypto president”, while on the Democratic side, it seems that he is more willing to support crypto reform legislation.

On June 24, Carol House, the author of the executive order of President Joe Biden to establish a regulatory framework for cryptocurrencies in the United States, has left her position as a crypto advisor at the New York Department of Financial Services, which some believe is interesting to join the White House.

What could happen to US politicians embracing this new cryptocurrency?

Strategically thinking politicians recognize that cryptocurrency owners today comprise 15% to 20% of the US population and are “trying to win their votes by appealing to their economic interests,” said political science professor Grant Ferguson. “Just like you do when you talk about 401ks and other assets,” Texas Christian University told Cointelegraph, adding:

“Both Republicans, like Donald Trump, and Democrats, like Colorado Governor Jared Polis, see the potential in cryptocurrency, a much more valuable asset class than it was five years ago.

The “reality” is this crypto

“Any candidate running for any office in our country has to face and address the reality of what cryptocurrency is,” Moy Vella, an adviser to UniCoin, an asset-backed cryptocurrency, and a former White House senior adviser under two Democratic administrations told Cointelegraph. :

“It is here to stay, and its influence and role in the financial, investment and economic sectors cannot be ignored or overlooked again. Any presidential candidate does so at their own political risk.”

The rehiring is arguably an indication that the White House is coming to terms with this reality. House is a subject matter expert, and “SMEs often come in when their expertise is needed,” Vella said.

“I believe this will at least be a strong recognition by the Biden administration of the importance of digital assets and their impact on our economy.”

Now “normal” industry

When politicians are ganged up on, mainstream acceptance can't be far behind. The industry is better organized than the last 2020 presidential election, and perhaps even the 2022 midterm elections, University of Rochester political science professor David Primo told Cointelegraph:

“Crypto is now known for its well-funded trade groups, politically motivated executives, large lobbying presence and concerted efforts to convey the industry's message. In many ways it looks like a ‘normal' industry, and politicians respond to well-organized interest groups.

But there may be more at play in this particular election cycle. Crypto-user demographics align with the highly sought-after “swing voters.” Ferguson said:

“Our research shows that crypto investors have some distinct political views that are particularly relevant to this [election] year.”

Ferguson, along with co-authors Kathryn Haglin and Soren Jordan, recently published research in American Politics that says “the demographics and opinions of Americans who own crypto are key reasons why many politicians are trying to appeal to these potential voters.” He told Cointelegraph.

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The typical crypto investor in the US is likely to be a young, centrist (political) male – often Latino or African-American – shareholder. This individual is “perhaps a little more open to trying new technology and taking risks than others,” Ferguson explains, although he is no more educated than the American average. In short, this user “seems like a swing voter.”

This symbolic user can vote for a party's presidential candidate or a third-party candidate. Their position is not frozen, and the vote of this crypto user is still to be voted.

Aren't politicians mean?

Still, how sustainable is this latest “crush” on American office-seekers? After all, it's not inconceivable that Trump and others could flip again between now and November, especially if crypto prices fall.

“If there's a big change in the value of crypto, it could affect the position that Trump and Biden and others take,” Ferguson said. On the other hand, “if internal polls show that winning over crypto holders will help them gain another percent or two in swing states, they may stick with pro-cryptocurrency policies until November and beyond.”

The Trump campaign, meanwhile, clearly recognizes the political benefits of winning over crypto voters, but Trump's track record should “serve as a clear warning to take the newfound love of crypto with a grain of salt,” Vela opined. “If crypto loses its charm between now and the election, it will again have bad things to say about Bitcoin and the crypto sector.”

Donald Trump said: “If you're a crypto supporter, you'd better vote for Trump” pic.twitter.com/5AGYIfsNOg

— Randy Hipper (@missteencrypto) May 9, 2024

Crypto funding campaigns can make the relationship more sustainable. “As long as crypto has any value, US politicians will be eager to acquire it.”

Ciara Torres-Speliscy, a law professor at Stetson University College of Law and author of CorporateCracy, told Cointelegraph.

Just as politicians accept donations for things like a printing press or free bunting to decorate a platform, Torres-Spelici continued. “Trump is using some of his campaign money to pay his lawyers. That demand for money — fiat or crypto — isn't going away anytime soon.

Waving the dog?

This new crypto attachment has some interesting differences. Some say this election season lawmakers have gone so far as to “sway the dog” — using crypto as a diversionary tactic. It may be a coincidence that Representative Matt Gaetz, who is under investigation by the House Ethics Committee for sexual misconduct and illegal drug use, recently discovered the virtues of Bitcoin.

So, are some US politicians using crypto as a distraction this election season?

Vela responded: “I feel that any legislator who uses cryptocurrency to create diversion, divide, intimidate or intimidate voters will pay the price at the ballot box. That politician is simply out of touch with the public.”

“In today's financial system, an elected official who fails to recognize that crypto is created because large numbers of citizens are disenfranchised and invisible is at their own political peril,” Vella continued.

“Politicians, especially some older ones, want to appeal to the growing younger generation of the American electorate,” Torres-Spelici added. “Crypto Traction Could Be a Sneaky Way to Appeal to Gen Z Voters.”

Lock in electoral gains?

Overall, will the upcoming US elections have consequences for global crypto and blockchain technology?

The presidential and congressional winners will shape the future of the law in many ways, Torres-Spelici told Cointelegraph. “A united Congress and president under one party can pass all kinds of laws that enable or hinder new technologies like crypto.”

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“If presidential and congressional candidates win their elections in part due to cryptocurrency owners, “they may want to lock in those electoral gains by approving policies favorable to cryptocurrency investors and technology entrepreneurs.”

But what is happening may not necessarily be transactional or short-term.

Overall, “Politicians and candidates of all stripes are jumping on the crypto bandwagon because they fundamentally understand that it is more than an alternative and viable financial system. It can be said to be a ‘movement'.” Vela said. There are millions of people who feel left out of the current system and are clamoring for an accessible, digital and inclusive system.