What Side Of The Political Spectrum Is Crypto On?

Cryptocurrency is unquestionably a divisive topic. Any mention of crypto in public tends to be swarmed with acquisitions of scams and fraud, but that isn’t stopping the technology from taking political sides as the race for the 2024 presidency starts to heat up. 

Since its explosion in popularity in 2021, cryptocurrency has caught the attention of nearly everyone in US politics with Congress and many government bodies such as the IRS and FBI being fully aware of blockchain technology for over a decade now. So, how are politicians using cryptocurrency to their advantage, and what does it suggest about the future of the web3 industry in the United States?

Support from the right

Over the last few years, right-wing politicians and conservatives have taken a keen interest in cryptocurrency for various reasons that stem more from ideology than finance despite the group’s image of being fiscally responsible. 

Right-wing agendas tend to support local governments over the federal government and value privacy and the private sector. This makes the concept of cryptocurrency more appealing to Republican and Libertarian politicians because cryptocurrency gives businesses and politicians the ability to privatize money, taking it away from the control of the Federal Reserve. 

Florida Governor Ron DeSantis, who just announced his presidential campaign on Twitter, is a prime example of a conservative politician who sees value in cryptocurrency; or at least, he sees a problem in centralized currencies. A week before his presidential campaign announcement, DeSantis made headlines stating that he would ban CBDCs from the state of Florida because he believes they represent more federal control over people’s finances. 

Former President Donald Trump has also taken a liking to blockchain assets after raising over a million dollars with his NFT collection which offers users various rewards related to meeting Trump, golfing on his property, and attending private dinner parties. 

Pushback from the left

On the other hand, politicians from the liberal wing of the United States are creating significant pushback against the technology, believing that it undermines American interests, causes harm, and is detrimental to the environment. However, looking back at ideology, it’s clear that the privatization of money doesn’t fit strongly into the liberal agenda of strong federal oversight and a government that relies heavily on regulations and taxes. 

President Biden, in the midst of a looming default that could cause massive financial repercussions, has stated that he will not approve any resolution that supports crypto traders, making it clear that he has little to no interest in the technology or the jobs that it creates within the US.

To a similar tune, Elizabeth Warren has made cryptocurrencies a clear enemy by supporting numerous bills and frameworks that would limit the use of cryptocurrencies and even outright ban them in some situations. 

Can crypto survive in the US?

Unfortunately, it’s unclear what the future of cryptocurrency will look like in the United States as it’s quickly becoming a partisan issue split between party lines. While Republicans are more likely to support the growing industry, agencies like the SEC are impeding the progress of web3 businesses within the country with little oversight. 

However, President Biden’s regulatory framework for cryptocurrency is still in development after it was announced in early 2022, but with the presidential election drawing nearer, this could be subject to change if a different candidate is elected to replace President Biden. 

That doesn’t mean that crypto investors need to all vote for one side over the other based on their crypto wallets. Cryptocurrency is still a fringe investment asset and only encompasses a small portion of what presidential nominees are debating. 

Frankly, there are much larger issues in the country that need to be addressed such as the war in Ukraine and growing concerns about AI technology that need to be solved first before more nuanced regulations for web3 are developed because it will take a long time to understand and design a framework that can handle the unique challenges created by decentralization.