From Bitcoin to Ballots: Crypto's impact on the 2024 US Elections

Reflecting on my recent trip to the United States, where the buzz around cryptocurrency is palpable, it's clear that digital assets have woven themselves into the fabric of American politics in more ways than one. In this election cycle, winning over crypto holders in crucial swing states has become a strategic imperative. What started as a niche industry has now become a significant political issue.

According to a Harris Poll[1], 20% of the voting population in the United States owns crypto, and 30% are more inclined to vote for a candidate who supports digital currencies. Furthermore, 73% of voters believe that presidential candidates should have an informed perspective on emerging technologies like AI and crypto. This data underscores that cryptocurrency isn't just a sideline topic anymore; it's a cornerstone issue in congressional, senatorial, and presidential campaigns across the nation.

Who could have foreseen that Bitcoin, once traded for a couple of pizzas, would have such sway over a nation's future?

Candidates' shifting stance on crypto

In a remarkable shift, candidates who once dismissed cryptocurrencies are embracing them with open arms, driven by the necessity of appealing to a tech-savvy electorate.

Former President Donald Trump, who once criticised cryptocurrencies as scams, has now embraced them as part of his campaign strategy. He has even launched a collection of NFT trading cards, accepting campaign donations via crypto, and scheduled to speak at a crypto conference this week.

Trump has positioned himself as a staunch advocate for making the US a hub for Bitcoin mining—a move likely to resonate globally. The assassination attempt on Trump and the subsequent potential for him to win the election has seen the price of Bitcoin rally, with miners and crypto companies bracing for what could be their most consequential event yet.

Similarly, independent candidate Robert Kennedy Junior is actively courting the crypto vote, having made appearances at industry conferences like Consensus.

The rhetoric from both major contenders now revolves around fostering a pro-crypto agenda and championing American technological leadership.

What's even more interesting is that in a turn of events, the Biden campaign (now the Kamala Harris campaign!) was also considering accepting cryptocurrency donations through Coinbase Commerce, the same payment service that allows contributions to Trump’s campaign. With this move, the Democrats aim to attract young crypto-focused voters. Biden also rehired cybersecurity expert Carole House, signaling his party’s renewed interest in crypto policy.

Political analysts now assert that the crypto industry's influence on US elections has never been more pronounced.

Other jurisdictions pushing ahead

The focus on crypto isn’t limited to the US. On the global stage, other jurisdictions are forging ahead with their own crypto strategies.

In Thailand, the central bank is experimenting with digital currencies in collaboration with regional banks. In the UAE, discussions between crypto and traditional financial regulators are ongoing. Meanwhile, the EU is preparing to implement the Markets in Crypto-Assets (MiCA) regulation by 2025. Starting in 2018, this EU-wide purpose-built supervisory foundation designed to regulate digital assets across 26 member states will establish a comprehensive framework for the sector.

...while in Australia, we are left waiting

Amidst these developments, Australia finds itself at a crossroads, grappling with perceptions of crypto as a risky venture rather than an instrument of economic innovation. There is a noticeable absence of dialogue regarding future prospects. Crypto users, investors, and innovators are often unfairly portrayed as lacking foresight. There is limited mention of Australian businesses actively participating in the significant global developments surrounding cryptocurrency, and their efforts to maintain Australia's relevance in this evolving landscape.

At BTC Markets, we have stood resilient for 11 years. Our journey is a testament to our unwavering commitment to our clients and the community. As Australia considers its stance on crypto, we remain steadfast in our mission. We are not just part of this extraordinary global evolution; we are shaping it.

Watching with anticipation

As the 2024 US elections unfold with cryptocurrency at the forefront, the outcome will undoubtedly shape the future of digital assets in America and beyond. Whether championing pro-crypto agendas or imposing stringent regulations, the decisions made by the next administration will set the course for how cryptocurrencies are perceived and utilised globally.

Only time will reveal the full extent of these impacts. For now, stakeholders across industries and countries are watching with anticipation.