Messari Co-Founder Nic Carter, a well-known cryptocurrency advocate and industry commentator, recently took to the social media platform X (formerly Twitter) to express his concerns about the Democratic Party’s increasingly anti-crypto stance. In a long post, Carter argued that the Democrats’ approach to cryptocurrency regulation could be a political misstep, potentially alienating a significant portion of the electorate without achieving any substantial policy objectives.
Carter pointed out that the Democratic efforts to impose stringent regulations on cryptocurrencies don’t necessarily support their broader policy objectives. He referenced the recent reversal of the SAB121 guidance, which he believes could have aligned with Democratic goals by allowing major banks to custody cryptocurrencies, thereby facilitating better government oversight and enhancing the stability of the financial system. Furthermore, he noted the benefits of stablecoins, which are often tied to the U.S. dollar, in strengthening the dollar, supporting Treasury buyers, and easing the management of national debt.
Highlighting the widespread public interest and investment in cryptocurrencies, Carter cited a study by Paradigm showing that about 19% of American voters own some form of cryptocurrency, split roughly evenly between Democrats and Republicans. He argued that for many of these voters, cryptocurrency is a significant issue. Carter added that prominent Democrats like Senator Elizabeth Warren, who has spoken of building an “anti-crypto army,” are effectively signaling to a large segment of the population that their financial investments are at risk—a stance that may not resonate well with voters.
Carter also noted the scarcity of vehement anti-crypto advocates among the general public, suggesting that the Democratic Party is unlikely to gain substantial support by opposing cryptocurrency. Conversely, he proposed that crypto-focused political action committees (PACs) could influence critical states in upcoming elections, potentially affecting key appointments like the next SEC chair. He used Ohio’s Senate race between crypto-skeptic Sherrod Brown and crypto-friendly Bernie Moreno as an example of where crypto PACs could significantly impact the outcome.
Furthermore, Carter referenced recent primary results, such as the defeat of crypto-critic Katie Porter by Adam Schiff, as evidence of the growing political influence of the cryptocurrency community. By positioning cryptocurrency regulation as a pivotal issue in the election, Carter mentioned, Democrats might inadvertently ensure that crypto-related funding becomes a major factor in political campaigning.
According to Carter, the Democratic Party’s anti-crypto stance is largely influenced by its more radical progressive members, like Senator Elizabeth Warren. He believes that figures such as SEC Chair Gary Gensler and FDIC Chair Martin Gruenberg, both linked to Warren, are leading to extreme regulatory measures that do not resonate with the broader public’s view on cryptocurrencies.
Carter argued that the progressives are underestimating the level of popular support for cryptocurrencies and might not shift their stance until facing significant opposition from moderate Democrats. He concluded that the Democrats have mistakenly turned cryptocurrency into a contentious campaign issue, giving their political adversaries an easy point of attack.
Last week, former U.S. President Donald Trump, currently in the race for the presidency in 2024, voiced his support for cryptocurrencies at an event for Trump NFT holders held at his Mar-a-Lago estate in Florida. The former president expressed concerns about the departure of cryptocurrency firms from the U.S., attributing it to an unwelcoming environment for digital assets. He emphasized the need for a more accommodating approach, stating, “If we’re going to embrace it, we have to let them be here.”
At the gathering, Trump engaged with a crowd knowledgeable about crypto, indicating his openness to receiving campaign contributions in Bitcoin and similar digital currencies. He further criticized the current administration, accusing President Joe Biden and SEC Chair Gary Gensler of being uninformed and adverse towards the cryptocurrency sector.
Featured Image via Pixabay
