Is Crypto Being Victimized By The U.S. Political Divide?

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With the ongoing buzz stemming from President Biden’s recent executive order, politics have never been more prevalent in the crypto economy. Although the executive order didn’t necessarily change how the U.S. approaches crypto, it offered a view into the future of cryptocurrency government regulations.

While not without ideology, crypto itself isn’t inherently left or right-wing. People of all political backgrounds love, hate, or know nothing about blockchain technology. In fact, a recent survey of 1,000 people across the U.S., Mexico, and Brazil showed that 98% of people don’t understand basic crypto concepts. For instance, 90% didn’t know that the Bitcoin supply is capped at 21 million. This just shows that although the crypto movement may be mainstream, the confusion around it is widespread.  

According to the Financial Post 

“In December, the Conservative parliamentarian Michelle Rempel Garner asked the crypto community what the government could do to “improve the space.” Her colleague Pierre Poilievre and the People’s Party’s leader Maxime Bernier have praised bitcoin. So has Kevin O’Leary, who once ran for the Conservative leadership and is now backing crypto ventures. Alberta’s Conservative Premier Jason Kenney has also talked up crypto’s prospects.”

When Did Crypto Become so… Republican?

Here are only a few examples of how the right has ambitiously embraced the cryptocurrency industry:

  • Ted Cruz has repeatedly defended crypto in the Senate, and supporting Texas is becoming the epicenter of cryptocurrency.

  • Josh Mandel, the MAGA diehard who’s currently running for U.S. Senate in Ohio, openly and frequently praises Bitcoin.

  • Freshman Republican Sen. Cynthia Lummis of Wyoming is arguably the staunchest supporter of cryptocurrency in Congress; she bought somewhere between $50,001 and $100,000 worth of Bitcoin in August and accepts cryptocurrency for campaign donations.

  • Republican House Minority Leader Kevin McCarthy has suggested the government should use blockchain technology and advocated for the Federal Reserve and Treasury Department to take a friendlier stance toward Bitcoin.

Is There a Political Polarization Regarding Crypto?

In Washington, cryptocurrency is starting to show its partisan edges. Although there are roughly equal shares of Democrats and Republicans who say there are too many regulations on cryptocurrency, there is still a division between the parties.

  • About 30% of U.S. adults think crypto should be regulated by the federal government compared to about 1 in 5 who say it should not. 

  • Democrats are significantly more supportive of regulations than Republicans.

  • Sen. Elizabeth Warren of Massachusetts has emerged as one of the party’s most vocal cryptocurrency critics, warning that it exposes consumers to danger, is ripe for financial crimes, and is an environmental threat because of its electricity usage.

  • Ron Wyden, chair of the Senate finance committee and one of the architects of US internet regulation urged members of his party to protect crypto innovators despite concerns about fraud and money laundering within the industry.

Closing Thoughts

There is a strong indication that cryptocurrency will be another ideology that political parties will not share. Whatever the reason behind this partisan divide over crypto, it may not matter in the future. Conservative politicians embrace crypt; progressive ones bash it. As right-leaning people become partial to it, a few more lefties avoid it. All while political outliers at lower levels of government embrace crypto regardless of party affiliation. 

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