In the latest financial analysis released by Galaxy Digital, a significant player in cryptocurrency financial services, there’s a notable highlight on the potential political clout wielded by cryptocurrency investors in the imminent U.S. presidential showdown. This analysis underscores the expanding demographic of crypto holders, particularly younger generations and communities of color, positioning these “crypto voters” as pivotal figures in what’s forecasted to be a tightly contested race between the incumbent, President Joe Biden, and his predecessor, Donald Trump.
As the electoral calendar veers toward November, and as investors scrutinize the implications of the vote on market dynamics, the cryptocurrency sector stands at the cusp of exerting unparalleled influence. Galaxy’s observations are corroborated by a March survey from crypto-centric venture capital entity Paradigm, which reveals that 19% of registered voters have cryptocurrency investments, over 11 million of whom boast holdings exceeding $1,000.
Interestingly, among cryptocurrency holders, there appears to be a tilt towards Trump, with 48% favoring the former president over Biden’s 39%. This inclination among crypto owners is reflective of a broader electoral narrative captured by Paradigm’s polling and mirrors national trends which indicate a neck-and-neck race, with Trump snagging 45% of registered voter support against Biden’s 42%.
A notable shift among 2020 Biden supporters who are also crypto investors towards Trump could be attributed to perceived regulatory actions by the Biden administration. The cryptocurrency community has expressed dissatisfaction with the Securities and Exchange Commission (SEC) under Chairman Gary Gensler, accusing it of opting for enforcement actions over the establishment of clear regulatory frameworks. Moreover, high-ranking advisors within the Biden administration have advocated for tighter cryptocurrency regulations. Conversely, congressional Republicans, alongside Trump’s promises to curb the development of a central bank digital currency (CBDC), position digital assets as a salient campaign issue.
Galaxy’s analysis and Paradigm’s survey mutually underscore the significance attributed to policy direction on cryptocurrencies by investors. This sentiment is echoed in the rising participation of crypto-focused political action committees (PACs) in electoral politics, exemplified by Fairshake PAC’s significant financial contributions aimed at influencing key Senate races pivotal to chamber control.
These developments underline the entrenched nature of cryptocurrency within the American sociopolitical landscape, a notion reinforced by the observation that a mere 32% of the voting populace owns stock of any kind, juxtaposed with the burgeoning influence of crypto PACs, such as Fairshake.
As the political arena braces for the 2024 electoral battle, the stance of the Biden administration on crypto, as critiqued by Matthew Sigel of VanEck, sets the stage for a potential policy pivot should the presidency change hands. This policy landscape and its implications on broader crypto adoption and market dynamics, coupled with Bitcoin’s performance buoyed by the introduction of US Bitcoin ETFs, suggest a maturing intersection of financial innovation and political strategy as the election approaches.
Galaxy’s prognostications encapsulate a cautiously optimistic outlook for the crypto industry, premised on the assumption of diminishing regulatory hurdles post-election and the potential for growth unhindered by the legacy of regulatory skirmishes.