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Are Politicians Using Cryptocurrencies to Influence US Elections? — TradingView News
The US election year is shaping up to be one of the most volatile in recent memory, and cryptocurrencies are fueling the excitement even more.
Unlike previous presidential election cycles, this one actually sees politicians taking a stance on cryptocurrency and blockchain issues. Donald Trump has already promised to be the “crypto president,” while there seems to be a greater willingness on the Democratic side to support cryptocurrency reform legislation.
On June 24, Carole House, the author of President Joe Biden’s executive order to establish a regulatory framework for cryptocurrencies in the United States, left her post as a cryptocurrency adviser at the New York Department of Financial Services to return to the White House, in a move some consider noteworthy.
What could push US politicians to adopt cryptocurrencies again?
Strategically thinking politicians have realized that cryptocurrency holders represent at least 15-20% of the American public today and “are trying to win their votes by appealing to their economic interests,” Grant Ferguson, an instructor in the political science department at Texas Christian University, told Cointelegraph, “just like they do when they talk about 401ks and other types of assets.” He added:
“Both Republicans, like Donald Trump, and Democrats, like Colorado Governor Jared Polis, see the potential of cryptocurrencies as a much more valuable asset class than they were five years ago.”
The “reality” that is cryptocurrency
“Every candidate running for any office in our nation now has to confront and deal with the reality that is cryptocurrency,” Moe Vela, an advisor to Unicoin, an asset-backed cryptocurrency, and a former senior White House advisor under two Democratic administrations, told Cointelegraph:
“He is here to stay, and his impact and role in our financial, investment and economic sectors can never again be overlooked or ignored. Both presidential candidates will do so at their political peril.”
House’s rehiring is presumably a sign that the White House is adjusting to this reality. House is a subject matter expert, and “an SME is typically brought in when their expertise is needed,” Vela said, adding:
“I think this signals at least a strong recognition by the Biden administration of the importance of digital assets and their impact on our economy.”
Now a “normal” sector
When politicians jump on the bandwagon, mainstream acceptance can’t be far away. The industry is also better organized than it was during the previous presidential election in 2020, and perhaps even the 2022 midterm elections, David Primo, a political science professor at the University of Rochester, told Cointelegraph, adding:
“Cryptocurrency is now characterized by well-funded trade groups, politically engaged executives, a large lobbying presence, and a concerted effort to spread the industry’s message. In many ways it looks like a ‘normal’ industry, and politicians are responsive to well-organized interest groups.”
But there may be more at stake in this particular election cycle. Cryptocurrency user demographics are aligning with those of the highly sought-after “swing voters.” According to Ferguson:
“Our research also shows that cryptocurrency investors have some distinctive political attitudes that are particularly relevant in this [election] year.”
Ferguson, along with co-authors Kathryn Haglin and Soren Jordan, recently published research in American Politics Research suggesting that “the demographics and views of Americans who own cryptocurrency are a key reason why more and more politicians are trying to appeal to these potential voters,” he told Cointelegraph.
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The typical cryptocurrency investor in the United States is a young, centrist male (politically) — often Latino or African American — who probably also owns stocks. This individual is “probably a little more open to trying new technologies and taking risks than others,” Ferguson explained, though not necessarily more educated than the average American. In short, this user “looks like a swing voter.”
This prototypical user could vote for either party’s presidential candidate or even a third-party candidate. Their position is not frozen and this crypto user’s vote is still up for grabs.
Aren’t politicians fickle?
But how long will this latest “crush” by US presidential candidates last? After all, it’s not inconceivable that Trump and others could change course again between now and November, especially if cryptocurrency prices plummet.
“If there’s a big drop in crypto prices, it could affect the positions Trump, Biden, and others take,” Ferguson acknowledges. On the other hand, “if their internal polls show that winning over crypto holders helps them pick up another percent or two in swing states, they could maintain pro-crypto policies into November and beyond.”
The Trump campaign, for its part, clearly recognizes the political benefits of winning over cryptocurrency voters, but Trump’s track record “should be a clear warning to take his newfound love of cryptocurrency with a grain of salt,” Vela said. “If cryptocurrency loses its luster between now and the election, he’ll have horrible things to say about Bitcoin and the cryptocurrency industry again.”
Donald Trump says “If you’re pro-crypto, you better vote for Trump” pic.twitter.com/5AGYIfsNOg
The fact that cryptocurrencies can be used to fund campaigns could make the relationship more durable, however. “As long as cryptocurrencies have value, American politicians will be eager to grab them,”
Ciara Torres-Spelliscy, a law professor at Stetson University College of Law and author of Corporatocracy, told Cointelegraph.
Just as politicians will accept in-kind contributions, like the use of a printing press or free bunting to decorate a stage, they will also accept cryptocurrency, Torres-Spelliscy continued. “Trump is using some of his campaign funds to pay his lawyers. That need for money, fiat or crypto, is not going away any time soon.”
Are you wagging your tail?
This new cryptocurrency attachment has some interesting twists. Some say that lawmakers this election season have even gone so far as to “wag the dog,” using cryptocurrencies as a diversionary tactic. It may be a coincidence that Representative Matt Gaetz, who is under investigation by a House ethics committee for sexual misconduct and illicit drug use, recently discovered the virtues of Bitcoin.
So are some US politicians also using cryptocurrencies as a diversion this election season?
“I firmly believe that any lawmaker who attempts to use cryptocurrency to divert, divide, scare, or intimidate voters will pay the price at the ballot box,” Vela responded. It’s a sign that the politician is simply out of touch with the public.
“An elected official who fails to realize that cryptocurrencies were created because a large segment of citizens felt excluded and unseen by the current financial system does so at his or her own political peril,” Vela continued.
“Politicians, especially some older ones, are desperate to appeal to younger voters who represent a growing portion of the American electorate,” Torres-Spelliscy added. “Promoting cryptocurrencies could be a cynical way to appeal to Gen Z voters.”
Guarantee electoral gains?
Overall, will the upcoming US elections have significant implications for the global future of blockchain technology and cryptocurrencies?
The winners of the presidency and Congress will shape the future of law in many ways, Torres-Spelliscy told Cointelegraph. “A unified Congress and presidency under one party could pass all sorts of laws that enable or stifle new technologies like cryptocurrency.”
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“If presidential and congressional candidates win elections in part because of cryptocurrency holders,” Ferguson added, “they may want to lock in those electoral gains by adopting policies that favor cryptocurrency investors and tech entrepreneurs.”
However, what happens is not necessarily transactional or short-term in nature.
All in all, “politicians and candidates of all stripes are jumping on the cryptocurrency bandwagon because they fundamentally understand that it’s more than a viable alternative financial system; it’s supposedly a ‘movement,’” Vela said. “These are millions of people who have felt left out of the current system and who are crying out for an accessible, digital, inclusive system.”