Voters holding Bitcoin and other cryptocurrencies could have a decisive impact in the upcoming US presidential election, according to the latest market commentary published this week by cryptocurrency financial services company Galaxy Digital.
The report points to recent polls that show cryptocurrency ownership is on the rise, especially among young voters and communities of color, and says these “crypto voters” could decide the outcome in the tight race between President Biden and former President Donald Trump. I insist.
Citing a March poll from cryptocurrency venture capital firm Paradigm, the Galaxy Digital report said: “As November approaches and investors begin to narrow in on the likely outcome of the vote for the market, the cryptocurrency industry is expected to “We can play a bigger role than ever before.” 19% of registered voters own cryptocurrency, including more than 11 million people who own more than $1,000 in value.
A Paradigm poll found that cryptocurrency owners currently prefer Trump over Biden by 48% to 39%.
Aside from cryptocurrency ownership, Paradigm’s poll mirrors other national polls showing a tight race, with 45% of registered voters supporting Trump and 42% backing Biden. However, Paradigm’s research found that some 2020 Biden voters who own cryptocurrency are switching to Trump, “perhaps due to actions taken by some agencies of the Biden administration.”
The cryptocurrency industry has largely criticized the Securities and Exchange Commission (SEC), led by Chairman Gary Gensler, for regulating digital assets through enforcement actions rather than clear rules, although it did not specify what action would be taken.
The Biden senior adviser also called for stricter cryptocurrency regulation. In contrast, Republican lawmakers have been trying to pass legislation to limit federal oversight of cryptocurrencies. Meanwhile, Trump has made digital assets a key issue in his campaign by promising to block the creation of central bank digital currency (CBDC) if re-elected.
“It is clear that one of the things this group of cryptocurrency holders cares about is how policymakers approach cryptocurrencies,” Paradigm said, a view reflected in the Galaxy report.
“The fact that cryptocurrency ownership is well-established among Americans is further evidenced by the fact that only 32% of the voting population owns any type of stock,” the latest report states.
Cryptocurrency-focused political action committees (PACs) are already spending big to influence key races in 2024. Fairshake, one of the leading PACs, has raised over $85 million from major cryptocurrency players such as Coinbase and Andreessen Horowitz. More than $10 million was spent to defeat a cryptocurrency-skeptic Democrat in California’s Senate primary.
Fairshake now plans to target four key Senate races — Ohio, Montana, Michigan and Maryland — that could decide control of the chamber. In Ohio and Montana, Fairshake will focus on general elections where incumbent Democratic senators have questioned the need for cryptocurrencies.
The PAC has not yet announced which candidate it will support in that state.
But Matthew Sigel, head of digital asset research at investment firm VanEck, argues that the Biden administration is hindering widespread cryptocurrency adoption and that a Trump victory could boost the industry.
“The Biden administration does not want banks and brokers to touch digital assets.” Sigel said. decryption last month. “With a change of president, there will be a lot more support for this industry.”
The growing influence of cryptocurrency owners as an electoral force coincides with the surging popularity of Bitcoin and other digital assets. The largest cryptocurrency surpassed $73,000 last month, hitting an all-time high, thanks to the launch of America’s first Bitcoin exchange-traded fund (ETF).
“Continued demand pressure from the newly launched spot BTC ETF has pushed ‘digital gold’ past $70,000 for the first time in history,” the Galaxy report said. “Bitcoin’s mainstream adoption has gained further support from several fronts this month, including increased interest from leading financial advisors and pension funds.”
However, the report notes that next week’s impending “halving” of Bitcoin mining rewards – which has served as a catalyst for larger gains in the past – could have the same effect this cycle, given Bitcoin’s surge to new highs ahead of the event. I warn you that you may not have it.
Nonetheless, with the “dark cloud” of the criminal case against FTX founder Sam Bankman-Fried now in the rearview mirror, Galaxy argues that the cryptocurrency industry is poised for growth as the 2024 elections approach.
“We hope that the removal of bad actors will provide a free path to brighter days in the digital asset space,” the report concluded.
Edited by Ryan Ozawa.