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The 2024 elections are seeing a historic focus on cryptocurrency. For the first time, two presidential candidates actively seek the crypto vote. Donald Trump addressed crypto voters at the Bitcoin 2024 Conference, receiving substantial support from the crypto community. Meanwhile, Democrats have also made significant moves, holding a crypto reset meeting with industry leaders and launching “Crypto for Harris”.

The SEC’s Influence on Crypto’s Political Rise

Crypto’s emergence as a critical player in the 2024 elections is linked to its ongoing conflict with the US Securities and Exchange Commission (SEC). In 2019, Gary Gensler reportedly approached Binance to become an advisor, but the offer was declined. Since 2021, under Gensler’s leadership, there has been a notable increase in SEC actions against crypto companies.

Three key court cases have established the SEC’s role as a significant adversary:

  • Telegram Case: The company had to return over $1 billion from a token raise, impacting SAFTs and the ICO boom in the US.
  • Ripple Labs Case: Ripple’s XRP was deemed a security for institutional investors but not for retail investors.
  • BitMEX Case: The founders’ arrests for AML/KYC violations sent shockwaves through the industry.

These legal actions were warning shots, indicating the SEC’s stringent approach towards major crypto firms.

From Ally to Adversary

The collapse of Terra Luna shifted public sentiment, emphasizing the need to hold bad actors accountable. The SEC seized this opportunity, intensifying its crackdown on the crypto industry. Even companies once seen as allies, like Coinbase, became targets. The SEC’s accusation of Coinbase operating an illicit exchange was particularly ironic, given Coinbase’s role as a custodian for the US government.

Crypto Industry Fights Back

The crypto industry has responded by going on the offensive, accusing federal regulators of failing to establish clear guidelines. Gemini COO Marshall Beard expressed his frustration, stating,

“We’ve been asking for broader regulation for a decade now, and the US still lacks a comprehensive crypto regulation framework.”

In response, key players have strengthened their government relations efforts, partnering with lobbying firms and supporting crypto-friendly candidates. Some have even counter-sued the SEC. Campaign finance tracking indicates a significant increase in crypto donations from the 2020 to 2022 election cycles, with nearly 50% of corporate donations coming from crypto companies.

Crypto Voters: A Key Demographic

The crypto community has become a crucial voting block in the 2024 elections. Perianne Boring, CEO of the Chamber of Digital Commerce, predicted in 2022 that the candidate leveraging blockchain to engage the crypto community could win the next presidential election.

Political analysts expect a tight race where small voter factions could be decisive. Data from a recent Harris poll suggests that one in five voters in battleground states considers crypto a key issue. The industry has mobilized to position crypto as a wedge issue, collecting extensive data on swing voters.

Stand With Crypto, a pro-crypto advocacy group, has registered nearly 1.5 million voters and is touring five battleground states to boost turnout.

Neutral Stance for Maximum Influence

Crypto lobbying groups remain neutral, donating to both Republicans and Democrats. However, industry leaders like Arthur Hayes and Charles Hoskinson have publicly endorsed candidates. The Winklevoss twins support Donald Trump, while Ripple’s co-founder Chris Larsen backs Kamala Harris.

Regardless of the election outcome, crypto has proven its resilience. From enduring a harsh crypto winter and regulatory challenges to mastering political strategy, the industry has solidified its influence in the 2024 elections.

About the Author:

Courage Kimber is a web3 strategist and blockchain consultant with over a decade of experience in web strategy management, e-commerce, and digital transformation. In recent years, she has focused on the blockchain space, consulting for companies and C-Suite executives on content strategy and management. Courage is passionate about her work and dedicated to helping others succeed.

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