Crypto’s legitimacy and adoption have been on the rise in recent years, but it has also become a topic of political divisiveness, particularly in the United States. According to Jonathan Jachym, the Global Head of Policy at U.S.-based crypto exchange Kraken, crypto is not a partisan issue and its situation is more nuanced. He believes that crypto technology is fundamentally about financial empowerment, asset ownership, and the decentralization of power structures. These are non-partisan issues that legislators around the world face as their constituents navigate the challenges of the existing financial system. Jachym argues that technology can be used to build a fairer, trustless, apolitical financial system that is more efficient, transparent, and secure for everyone.
Despite the perception of partisanship, there is actually a nearly even split of crypto support among politicians and voters. According to Coinbase’s Legislative Portal, which tracks U.S. politicians who have made positive statements about crypto, there is a significant number of crypto supporters in Congress on both sides of the political aisle. In the House of Representatives, 26 Republicans and 22 Democrats have voiced support for crypto. In the Senate, the support is slightly skewed toward the right, with 24 Republicans and only 11 Democrats making positive statements about crypto. Support for crypto among voters also appears to be evenly split between the left, right, and independents, with 22% of Democrats, 18% of Republicans, and 22% of Independents saying they own crypto, according to a national survey conducted by business intelligence company Morning Consult.
Jachym believes that the division in the crypto space has been caused by bad actors, but overall, he sees crypto as an inclusive and transformative technology with the potential to improve lives. Many developed economies are now advancing bespoke regulatory regimes for crypto assets, regardless of the political consensus of their population. For example, both “red” and “blue” states within the United States have made meaningful progress toward workable frameworks for crypto.
Bipartisanship for crypto has already been witnessed among politicians. The Congressional Blockchain Caucus, formed on September 26, 2016, through cooperation by Democrats and Republicans, is an example of this. The blockchain caucus was created to study blockchain technology and the role Congress can play in its development. Currently, the caucus is co-chaired by two Republicans and two Democrats. Both parties also appear to be accepting monetary donations from the crypto industry.
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However, critics of the crypto industry also come from both sides of politics. Democrats such as California Representative Brad Sherman and Massachusetts Senator Elizabeth Warren, as well as Republicans like Kansas Senator Roger Marshall and South Carolina Senator Lindsey Graham, have been among the loudest voices criticizing the industry. Aharon Miller, co-founder and chief operating officer of peer-to-peer trading platform Oobit, believes that crypto challenges the traditional financial system, so it’s natural for people with different political beliefs to have differing opinions on it. According to Miller, crypto isn’t just for one political camp; it’s a technology that goes beyond political boundaries and has the potential to impact everyone by bringing financial inclusion, lower transaction costs, and more transparency to the table.
Miller characterizes crypto as a game-changer that can revolutionize finance. He believes that regulators, policymakers, and the industry must work together to find the right balance between protecting consumers and fostering innovation. Understanding the real-world advancements facilitated by cryptocurrency will equip us to address practical and accessibility concerns, promoting broader adoption.
In conclusion, while the perception of partisanship exists in the crypto space, with politicians and critics voicing differing opinions, crypto itself remains a technology that is independent of political affiliations. Its potential to empower individuals, decentralize power structures, and revolutionize finance transcends political boundaries. It is important for regulators, policymakers, and the industry to work together to create an environment that encourages responsible innovation and unlocks the full potential of crypto. By doing so, we can build a fairer, more efficient, and secure financial system for everyone.
