Last week saw crypto once again in the spotlight. Donald Trump boldly declared his support while unveiling a new series of NFT mugshots at Mar-a-Lago. Meanwhile, the Biden Administration announced its intention to block attempts to revoke a widely disliked SEC accounting bulletin, effectively preventing many firms from holding crypto assets.
These events underscored how crypto has become a focal point in this year's presidential race. However, for many Democrats, the Biden Administration's firm stance felt more like a tragic comedy, akin to watching Sideshow Bob repeatedly step on rakes.
At this rate, crypto owners could be the final straw for the Biden campaign. Recent polling shows a shift in support: while Biden narrowly trails among non-crypto owners, he faces a larger deficit among the 20% of voters who own crypto. This marks a change from 2020 when crypto owners leaned towards Biden.
As Democrats, we believe Biden needs to provide reassurance to people in the crypto community. Our research indicates that approximately 20% of registered voters own crypto, spanning across party lines and demographics. Opposition to crypto is increasingly seen as synonymous with opposition to innovation and technological progress, creating unnecessary divisions within the party.
Crypto shouldn't be a partisan issue. Like any technology, it should be evaluated based on its merits, not political affiliations. Unfortunately, under the current administration, the SEC, led by Chair Gary Gensler, has taken a hostile stance towards the industry, creating unnecessary conflict and hindering progress.
While some Democrats in Congress have attempted to distance themselves from the SEC's approach, there has been limited pushback from the top. It's time for the party to recognize the diversity within the crypto industry and embrace a more balanced approach to regulation.
Both of us, as progressives in the crypto space, believe the party is making a mistake by allowing a few voices to dictate its stance on crypto. Responsible regulation is needed, but it should not stifle innovation or alienate a significant voting bloc.
It's not too late for Democrats to change course. They don't need to fully embrace crypto, but acknowledging its potential and advocating for reasonable regulation would go a long way in bridging the divide. In a critical election year, Democrats should be seeking to unite voters, not alienate them.