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Important stories about money and politics in the White House race
No matter who you look at it, November 5th will be America's first “cryptocurrency election.” Hundreds of millions of real dollars are being poured into pro-crypto political action committees. Kamala Harris talked about encouraging “innovative technology.” Presidential rival Donald Trump has decided that Bitcoin is not a “scam” after all and has embarked on a series of crypto ventures, vowing to make America the “crypto capital of the planet.”
“Crypto voters are real, bipartisan, and ready to participate this cycle,” said Stand With, a lobbying group founded and funded by Coinbase, the largest U.S. cryptocurrency exchange. Crypto's executive director enthused last week. (The group rates politicians on their stance on cryptocurrencies, and Trump – unusually – gets an A grade.)
But dear reader, I have to be in your shoes right after BAT (Digital Token). Cryptocurrency voters are not real in any real sense. Aside from a small group of men (OK, mostly men) whose livelihoods now depend on this digital native fluff, most Americans have no idea whether it's food prices, health care, the job market, or the general state of the country. On the contrary, I have bigger worries. perhaps.
Therefore, the idea that there is a “constituency” of crypto voters that needs to be pandered to, and whose biggest challenge is to ensure that exchanges and other companies are not over-regulated is fanciful. But it's a narrative driven by the industry, with creatively interpreted statistics.
“Crypto is a national priority… 52 million Americans own cryptocurrencies and want their voices to be heard in the next election,” Stand With Crypto asserts. (52 million people is certainly in contention). “Nearly 9 in 10 Americans believe it is past time to update the financial system. However, U.S. policymakers seem more content with maintaining the status quo than fulfilling their responsibilities.” .”
This likely means allowing people like Coinbase's billionaire CEO Brian Armstrong to continue to get richer. Because if real crypto owners are being considered here, they should be doing well, thank you (or the lucky ones who were able to choose an exchange that didn't steal everything anyway) ).
Despite the Biden-Harris administration being “very hostile” to cryptocurrencies, according to President Trump – “so hostile that no one would believe” – Bitcoin's price has fallen. It has more than quadrupled since the 2020 election and reached a record high earlier this year. The estimated value of the entire cryptocurrency market has increased almost six times. If we're talking about US jobs, industry statistics show that nearly a third of the world's cryptocurrency workforce is based in the US.
Cryptocurrencies have also accounted for nearly half of corporate spending in elections to date, with the pro-crypto FairShake SuperPac alone raising more than $200 million.
But while there is no doubting the fact that this campaign includes a heavy dose of both cryptocurrencies and crypto rhetoric, do either candidates really care? Let's take a look at Harris' own words. Until recently, there was nothing. But last Sunday, at a Wall Street fundraiser, she finally said, “We will encourage innovative technologies like AI and digital assets while protecting consumers and investors.”
To all those excited about her sudden turn–Stand with Crypto even gave her a B rating as “slightly crypto-leaning” before downgrading it following backlash–I I want to make my thoughts clear. Harris couldn't give Satoshi a flying shot. She hasn't promised anything. Her comments were designed to curry favor with those who support tighter regulation, while not seeming high-handed and alienating the tech industry.
President Trump is selling four NFT collections, generously offering Americans “the chance to contribute to the campaign with cryptocurrencies.” But if you think his interests exceed his own prospects, you should also prepare for disappointment. While his “concrete and visionary positions” may be praised by Coinbase's chief policy officer, he doesn't seem to be taking everything all that seriously. “Enjoy Bitcoin, cryptocurrencies, and all the fun you can have,” he said at the Bitcoin 2024 conference in July.
President Trump doesn't seem to understand much either, but to be fair, at least he acknowledges it. As he and his sons launched their latest foray into crypto, World Liberty Financial, he likened it to learning Chinese. What the company will do remains to be seen.
Still, at least the venture's “DeFi visionaries” seem to understand. “Mr. Barron knows a lot about this,” the former president said of his 18-year-old son. “He talks about his wallet. He has four wallets or something, you know about that.” Recall Nov. 5. Ignorance, applause, and frustration.
jemima.kelly@ft.com
