KEY POINTS
- A recent Gemini survey underscored the growing significance of crypto in politics
- Politicians are recognizing that crypto can potentially 'sway voter decisions': Fireblocks CLO Jason Allegrante
- He noted that crypto regulation is crucial as the lack of clarity has become a key barrier for broader adoption
A movement in the cryptocurrency space is driving much-needed attention to the industry's calls for clear regulations: in the 2024 U.S. elections, crypto's voice will be heard. More Americans are using digital assets, and many of them are waking up to the reality that there is a gap in regulation, which is necessary for users and service providers alike to know the limits of what they can and can't do.
As more American consumers find lapses in the current regulatory process, an increasing number of crypto voters are being mindful of the candidates they're looking to vote for.
This was cemented in a recent survey by crypto exchange Gemini, which found that 73% of crypto owners "plan to consider a candidate's stance on crypto when they vote for the next president." Among the respondents, 37% said a presidential candidate's crypto views will have a "significant" impact on their vote.
In an exclusive with International Business Times, Jason Allegrante, the Chief Legal and Compliance Officer at institutional-grade DeFi platform and crypto custody tech firm Fireblocks, shared his thoughts on the growing presence of crypto in politics.
A Growing Recognition of Crypto's Importance in Politics
"Crypto emerging as a key issue in the 2024 U.S. elections is a defining moment for the industry," Allegrante said. He added that politicians are now addressing crypto "due to its increasing significance on the global stage and that feeds into voter priorities."
Such a shift signals that a huge portion of the electorate, especially younger voters, are deeply engaged with crypto, and they seek regulatory clarity, he added. Allegrante's statements reflect data from a May poll by Grayscale that revealed 62% of American Gen Z and Millennial voters "believe crypto and blockchain technology are the future of finance."
Indeed, politicians are finally recognizing that crypto is now a political issue, so much so that it can now "sway voter decisions," Allegrante said.
The Convergence of Politics and Regulation
With more U.S. lawmakers and politicians paying attention to crypto, there is also a growing clamor among crypto users for regulation that both encourages innovation and ensures improved consumer protection.
For Allegrante, the upcoming elections present an opportunity for lawmakers to shape policies that could set the tone for the country's leadership in global crypto innovation.
"Crypto regulation is now critical, as the lack of clarity has become a major barrier for broader adoption and investment. Clear guidance on stablecoins, the repeal of harmful accounting rules like SAB 121, and an end to debanking practices are crucial steps to unlocking the potential of digital assets," he noted.
It appears a growing number of lawmakers agree. For instance, the House of Representatives in July passed proposed legislation that seeks to establish a fintech working group to focus on combating terrorism and illicit financing in crypto.
On Tuesday, two Republican House members demanded answers from SEC Chair Gary Gensler regarding the regulatory agency's stance on air-dropped tokens, emphasizing the potential hurdles posed by existing regulations to innovation in the U.S. crypto space.
Fireblocks' Role in the Conversation
As the voice of crypto gets louder less than two months before the elections, Fireblocks is playing a major role in advocating for regulatory clarity around digital assets. The DeFi platform is engaging with policymakers to develop standards around custody and digital asset technology, Allegrante revealed.
🔒 Build on Trust. Scale with Connectivity. The Fireblocks Network lets you securely exchange value and expand your business with 80+ blockchains and 30+ exchanges. Security? Abstracted. Connectivity? Limitless.
— Fireblocks (@FireblocksHQ) September 18, 2024
Find out why the digital asset world converges on the Fireblocks… pic.twitter.com/X1AM84rVWV
"We support a regulatory environment that is clear, transparent, and that fosters innovation without stifling the industry. Through our participation in key discussions, we contribute to shaping the future regulatory landscape," he said.
Allegrante has written about the impact of the European Union's Markets in Crypto-Assets Regulation (MiCA) in crypto, most especially for the stablecoin segment, highlighting the need for regulation that balances security and industry growth.
