There Is a Possibility That Politicians Are Utilising Cryptocurrency to Influence Elections in the United States
The upcoming election year in the United States is poised to be exceptionally unpredictable, and the world of cryptocurrency is only adding to the thrill.
In contrast to past presidential election cycles, the current one showcases politicians who are actively addressing matters related to cryptocurrency and blockchain. Donald Trump has committed to becoming the “crypto president,” while among the Democratic candidates, there appears to be a stronger inclination to endorse legislation for reforming the crypto industry.
Carole House, the person who was responsible for President Joe Biden’s executive order to create a regulatory structure for cryptocurrencies in the United States, decided on June 24 to resign her position as a digital currencies counselor at the New York Department of Financial Services and return to the White House. This decision was made in anticipation of the upcoming presidential election. The fact that this action is considered to be noteworthy has attracted the attention of a significant number of people.
What could be fueling U.S. politicians’ recent adoption of cryptocurrencies?
Politicians with a knack for strategic thinking have come to recognize that a significant portion, around 15% to 20%, of the American population are cryptocurrency owners. They are now making efforts to secure their support by addressing their economic concerns. Grant Ferguson, an esteemed instructor in the political science department at Texas Christian University, explained that politicians are employing the same tactics they use when discussing 401ks and other types of assets. He included:
Both Republicans, such as Donald Trump, and Democrats, such as Jared Polis, the Governor of Colorado, see the potential of cryptocurrency, which has seen a huge gain in value over the previous five years.
Crypto Is the “Reality” That Happens
“Every individual seeking public office in our country must now confront and acknowledge the existence of cryptocurrency,” stated Moe Vela, a consultant for Unicoin, a cryptocurrency backed by assets and a former high-ranking White House advisor during two Democratic administrations.
It is undeniable that this phenomenon has firmly established itself, and its profound influence and significance in our financial, investment, and economic domains must never be underestimated or dismissed. Both presidential candidates will face political consequences regardless of their actions.
Rehiring House is possibly an indication that the White House is adapting to this situation. According to Vela, House is considered an expert in the field and is often called upon when their specialized knowledge is needed.
“I think this does indicate that the Biden administration acknowledges the significance of digital assets and their influence on our economy.”
— Moe Vela
Currently a “Regular” Business
When politicians jump on the bandwagon, widespread acceptance is sure to follow. According to David Primo, a political science professor at the University of Rochester, the industry is more well-structured compared to the previous presidential election year of 2020 and possibly even the 2022 midterm elections. He mentioned:
“The crypto industry has undergone significant changes, with trade groups receiving substantial funding, executives actively participating in politics, a strong lobbying presence, and a focused endeavor to effectively communicate the industry’s message.” In various aspects, it resembles a typical industry, and politicians are receptive to efficiently coordinated interest groups.
However, there could be additional factors influencing this specific election cycle. The demographics of crypto-users are starting to resemble those of highly sought-after “swing voters.” As per Ferguson’s statement:
“Our findings also indicate that individuals who invest in cryptocurrency possess unique political beliefs that hold particular relevance in the current election season.”
— Grant Ferguson
Recently, Ferguson, together with his collaborators Soren Jordan and Kathryn Haglin, carried out a study that was published in the journal American Politics Research. As Ferguson noted, their findings suggest that the traits and perspectives of Bitcoin owners play a significant role in persuading politicians to pander to this set of potential voters. This is because blockchain technology is a decentralized digital currency.
The average cryptocurrency investor in the United States tends to be a young, politically moderate male. They often belong to the Latino or African-American community and are also likely to have investments in traditional stocks. According to Ferguson, this person is likely more inclined to explore new technology and embrace risks than others without necessarily having a higher level of education than the average American. In summary, this user appears to be a swing voter.
This typical user has the option to vote for a presidential candidate from either party or even consider a candidate from a third party. Their stance remains fluid, and this cryptocurrency user’s vote is still undecided.
Don’t Politicians Tend to Be Fickle?
However, the longevity of this current infatuation among American politicians remains to be determined. It’s impossible to imagine that Trump and others might change their stance once more before November, particularly if cryptocurrency prices decline.
“The potential impact of a significant decline in cryptocurrency prices on the stances of individuals such as Trump and Biden, among others, is acknowledged by Ferguson.” Alternatively, “If their internal polling indicates that garnering support from individuals who own cryptocurrency can secure them an additional percentage or two in swing states, they might continue to advocate for pro-cryptocurrency policies until November and beyond.”
The Trump campaign, on the other hand, clearly understands the political benefits of appealing to crypto voters. Still, it is essential to approach Trump’s sudden interest in crypto cautiously, given his past actions,” remarked Vela. If cryptocurrency loses its appeal before the election, he will once again have negative comments about Bitcoin and the cryptocurrency industry.
Nonetheless, using cryptocurrency to finance campaigns has the potential to foster a more enduring connection. “As long as cryptocurrency holds any worth, American politicians will be keen to acquire it.”
Ciara Torres-Spelliscy, an esteemed law professor at Stetson University College of Law and the brilliant mind behind the book Corporatocracy, shared her insights.
According to Torres-Spelliscy, politicians are open to receiving various forms of contributions, such as in-kind donations like the use of a printing press or free bunting for stage decoration. Additionally, they are also willing to accept cryptocurrency. It has come to light that a portion of Trump’s campaign funds are being allocated to compensate his legal team. The persistent demand for funds, whether in traditional currency or digital assets, is here to stay.
Manipulating the Situation
This innovative cryptocurrency accessory offers a range of captivating alternatives. There are allegations that politicians during this election season have resorted to the tactic of “wagging the dog” by employing cryptocurrency as a means of diversion. It’s pretty interesting that Representative Matt Gaetz, who is currently under investigation by a House ethics committee for allegations of sexual misconduct and illicit drug use, has recently expressed a newfound interest in the potential benefits of Bitcoin.
Are certain American politicians utilizing cryptocurrency as a means of diverting attention during this election period?
“I firmly believe that any legislator who tries to utilize cryptocurrency as a means of distraction, polarization, fear-mongering, or voter intimidation will face the consequences during elections,” Vela replied. The politician is wholly disconnected from the public.
“If elected officials do not recognize that cryptocurrency emerged as a response to the widespread feeling of being marginalized and overlooked by the existing financial system, they are putting their political future at risk,” Vela added.
“Politicians, particularly certain individuals from the older generation, are eager to connect with the younger demographic, which is an increasingly influential segment of the American voting population,” commented Torres-Spelliscy. “Promoting cryptocurrency might be a calculated strategy to attract the attention of Generation Z voters.”
Securing Electoral Victories
Will the upcoming U.S. elections have a significant impact on the future of crypto and blockchain technology worldwide?
According to Torres-Spelliscy, the outcome of the presidential and congressional elections will have a significant impact on various areas of law. “When the same party controls the Congress and presidency, they have the power to enact various laws that can either support or hinder the development of emerging technologies such as cryptocurrency.”
“If presidential and congressional candidates secure their election victories with the support of cryptocurrency owners,” Ferguson suggested, “they might be inclined to solidify their political gains by implementing policies that benefit cryptocurrency investors and technology entrepreneurs.”
The current situation may only sometimes involve transactions or have short-term implications.
Conclusion
Politicians and candidates from various backgrounds are eagerly embracing the crypto trend. They recognize that it goes beyond being just another financial system and can be seen as a significant movement. Numerous individuals who have been excluded from the existing system are fervently advocating for a system that is easily accessible, technologically advanced and embraces everyone.
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