With the US VP Debate 2024 tonight and elections just weeks away, crypto is becoming a heavyweight in the political scene.
This election cycle, crypto backers are responsible for almost half of corporate contributions to reshape America's financial future. Although crypto has its thumb on the fiscal scale, blockchain has played a relatively quiet role out of a few tweets and conferences.
Here's the good, bad, and ugly of crypto's political position and whether the VP debate will address any of these issues.
VP Debate 2024: Cryptocurrency's Financial Power in Politics
So far, crypto giants and investors have funneled over $119 million into federal elections, backing Kamala Harris and Donald Trump for presidency, both of which have supportive crypto stances. Much of this cash flows through the super PAC, Fairshake, which has stockpiled a hefty $202 million, marking crypto's intent to support allies and confront opponents.
Crypto companies — primarily Coinbase and Ripple — are now the dominant corporate political spenders in 2024.
Despite its financial influence, the crypto industry faces challenges. A Federal Reserve survey showed only about 7% of Americans engaged in crypto in 2023, indicating a need to broaden its appeal to the general public.
So what are the chances we will hear about crypto tonight during the VP debate in 2024?
The going odds for Democratic candidate Tim Walz on Polymarket are a 93% chance he'll say "abortion," 20% for "tampon," and 19% he will say "racist."
Trump's VP and Silicon Valley wunderkind JD Vance's odds are 93% for "abortion," 38% for "mamaw" - referring to his book 'Hillbilly Elegy - and 95% for "inflation." The odds of anything crypto-related being discussed are near zero.
Candidates' Stances on Crypto: Trump vs. Harris
Kamala Harris is treading carefully on cryptocurrency, mirroring the Democratic Party's broader hesitance. While she hasn't committed to a firm position, signs point to a potential pivot. In July, 14 House Democrats pushed the DNC to consider pro-crypto policies. At a New York fundraiser, Harris hinted at backing tech innovation.
Trump's views on cryptocurrency are less hazy, although he historically had doubts.
In Trump's first BTC speech in Nashville, he said he would:
- Fire SEC Chair Gary Gensler
- Create Strategic Stockpile (aka never sell current US bitcoin stack)
- Create a Crypto task force, ending antagonistic regulations within 100 days
- Stop Operation Choke Point
- Not gonna tax your gains 50% like the Biden-Harris administration
Meanwhile, the crypto regulation scene has been turbulent under Joe Biden, with the SEC aggressively cracking down on giants like Binance and Coinbase. This pressure is nudging some firms toward geofencing, a drastic compliance tactic restricting access based on location. Binance has already embraced this move to sidestep U.S. legal obstacles.
The blockchain industry clearly needs a new vision from the executive branch, especially after Biden's Operation Chokepoint 2.0.
Crypto lobbyists might think they've secured assurances, but in politics, promises are as good as wet tissue paper until fulfilled.
