Donald Trump appears as a defender of bitcoin and cryptocurrencies. Beyond the position of the Republican candidate, the question of cryptocurrencies permeates the presidential debate in the United States.
As the 2024 US presidential election approaches, cryptocurrencies are emerging as a key topic of debate. Their impact goes far beyond simple financial transactions; they influence campaign financing strategies, the speeches of Trump and Harris, and the mobilization of their voters.
Since the launch of Bitcoin in 2009, cryptocurrencies have gained notoriety, attracting millions of investors. By 2024, a Pew Research survey reveals that nearly 40% of young American adults will hold cryptocurrencies. This growing trend pushes candidates to adapt their message to appeal to this segment of the electorate.
More and more politicians are accepting cryptocurrency donations to finance their campaigns. For example, in 2020, Libertarian candidate Jo Jorgensen led the way by accepting Bitcoin donations. In 2024, this practice has intensified with figures like Senator Rand Paul, who campaigned on the acceptance of cryptocurrencies. Cryptocurrency donations allow candidates to reach a younger voter base, often less represented in traditional financing systems. Fast transactions and the possibility of anonymous donations also attract some contributors.
Cryptos to finance campaigns
Republican candidate Vivek Ramaswamy, an entrepreneur and investor, was one of the first to accept Bitcoin donations. He said it was part of his vision for a more decentralized economy. His team also uses NFTs to raise funds, which allows him to position himself as an innovator in the digital space.
Candidates approach the topic of cryptocurrencies with varying perspectives, from promoting favorable regulation to harsh criticism. Former President Donald Trump has expressed contrasting views on cryptocurrencies. On the one hand, he called Bitcoin a “fraud” and criticized its use, arguing that it competed with the U.S. dollar and threatened U.S. monetary sovereignty. However, Trump has also shown an interest in fintech and has hinted that, if returned to power, he might consider policies that could, at least indirectly, support innovation in the sector. Which side of Trump should we believe?
For her part, Vice-President Kamala Harris adopted a more measured but less weather vane position. She recognized the potential of cryptocurrencies while highlighting the need for regulation. Harris expressed concerns about safety and consumer protection risks. As vice president, she was involved in discussions on how to regulate the cryptocurrency industry to prevent abuse while encouraging innovation. Harris advocated for a regulatory framework that protects consumers and prevents financial crime.
(Already more than 120,000 newsletter subscriptions The Conversation. And you ? Subscribe today to better understand the world’s biggest issues.)
Partisan support
To shed light on the difference in positions between Republicans and Democrats, it should be noted that among Trump’s supporters, there are well-known pro-cryptocurrencies: Ron DeSantis, the (Republican) governor of Florida, declared that cryptocurrencies are essential to promote freedom economic. He promised to create a favorable regulatory environment to encourage technological innovation in Florida, thereby attracting blockchain companies. Likewise, Ted Cruz, the senator (also Republican) from Texas, is a fervent defender of cryptocurrencies. He recently proposed laws to make Bitcoin donations easier for election campaigns, arguing that it increases transparency and civic engagement.
As for Elon Musk, his position on cryptocurrencies is both complex and fluctuating. As CEO of Tesla and SpaceX, Musk has expressed notable interest in Bitcoin and other cryptocurrencies, significantly influencing markets with his tweets and statements. In 2021, Tesla announced that it had purchased $1.5 billion in Bitcoin and temporarily accepted Bitcoin as payment for its vehicles, before suspending this option due to environmental concerns related to the energy impact of Bitcoin mining . Musk has also shown interest in Dogecoin, a cryptocurrency initially created as a joke, regularly promoting it on Twitter and contributing to its volatility. However, he has often emphasized the need to make cryptocurrencies more sustainable and expressed reservations about their energy consumption.
On the Democratic side, many of Kamala Harras’ supporters appear to be skeptical of cryptocurrencies: Elizabeth Warren in particular, the (Democratic) senator from Massachusetts, is very critical of cryptocurrencies. She calls them “dangerous financial systems” that can fuel crime and tax evasion. Warren advocates strict regulations to protect consumers, which could alienate younger voters. As for Joe Biden, although the current president has not taken a firm stance on cryptocurrencies, his administration has implemented stricter regulations on the sector. This has raised concerns among cryptocurrency advocates, who fear a tougher crackdown.
A voter mobilization tool
Campaigns are using cryptocurrencies as a tool to mobilize voters, particularly young people. Events like cryptocurrency meetups or educational webinars are organized to engage voters.
Among the most innovative strategies, we can mention the initiatives of Andrew Yang (Democrat): Yang was a pioneer in the use of cryptocurrencies in politics. He proposed exploring the potential of a digital dollar and used cryptocurrency platforms to fund his campaigns. We can also mention the use of social networks: candidates are exploiting platforms like Twitter and TikTok to reach young voters, talking about cryptocurrencies and organizing question-and-answer sessions on their use and potential.
As for the impact on voting, young voters are often more open to candidates who support cryptocurrencies. A recent poll showed that 65% of voters under the age of 30 support candidates who accept cryptocurrency donations. This dynamic could have a significant impact in key states.
Regulatory challenges and issues
The regulatory landscape for cryptocurrencies is evolving. Candidates must navigate a complex environment where positions on regulations can influence their support.
Congress is currently debating the need for a clear regulatory framework. The proposals include the creation of an agency dedicated to regulating cryptocurrencies, which could have profound implications for innovation in the sector.
The results of the 2024 election could redefine the regulatory framework for cryptocurrencies. A cryptocurrency-friendly president might favor liberal laws, while a more skeptical president might impose harsher restrictions.
Cryptocurrencies have become a central element of the 2024 American presidential campaign. Whether through campaign financing, candidate positions or voter mobilization, their impact is undeniable. As voters prepare to cast their ballots in November 2024, it will be crucial to track the evolving positions of Trump and Harris and the growing influence of cryptocurrencies on the political landscape. Decisions made during this campaign could have lasting repercussions on the future of cryptocurrency regulation in the United States, and subsequently around the world.
