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The Final Stretch: The Role of Crypto in the 2024 Election

Rashan Colbert
Rashan Colbert
Crypto Election
Rashan Colbert
Rashan Colbert

In just two weeks, American citizens from all walks of life will have the opportunity to cast their ballots in the 2024 Presidential, Senate, and House of Representatives elections. As they step into the voting booth, a wide array of issues will likely influence their decisions. For many Americans, economic concerns—such as the availability of good jobs, inflation, and interest rates—will dominate their thinking. These economic anxieties, fueled by rising costs of living and market volatility, remain a top priority, as families grapple with stagnant wages and soaring prices. In addition to the economy, voters will also weigh other pressing matters: the price of healthcare, the ongoing war in Ukraine, the escalating conflict in Gaza, immigration at the southern border, reproductive rights, the future of the Supreme Court, and violence in our cities. 

More than ever before, cutting-edge digital technology will also be on the minds of voters. This new wave of concern includes discussions on cybersecurity, the risks and potential of Artificial Intelligence, and the fate of cryptocurrencies and digital assets. The role of technology in society has evolved into a central issue that touches upon every facet of life—from economic stability to personal privacy—making it an increasingly important factor in the 2024 elections.

Crypto, in particular, has emerged as a hot-button issue. Once considered a niche interest, digital assets have gained national attention as the debate over their regulation heats up. Unimaginably large sums of money are being raised by passionate advocates for the industry's flourishing within the United States. Notably, the sector's backers include not only those directly involved in blockchain technology but also key players from broader tech and finance sectors, demonstrating the extent to which digital assets have infiltrated mainstream business interests. Despite the crypto industry's relatively small physical footprint, it has seen its influence grow considerably. Historically, crypto was seen as an easy target for legislators and regulators looking to rein in what they perceived as opportunistic businesspeople pushing untested technologies. However, the industry's rapid growth and increasing importance to the U.S. economy have made it a more complex and powerful entity than many lawmakers anticipated.

The political landscape surrounding crypto has shifted, with pro-crypto candidates emerging as champions for the industry. These candidates, backed by major financial contributions, have the potential to shape the future of digital asset legislation. For example, the Fairshake Super PAC—organized by some of the largest corporate players in the U.S. crypto space—has raised over $200 million in the 2023-24 campaign cycle, surpassing the fundraising efforts of any other single group. This unprecedented level of financial support signals a growing political clout for the digital asset sector, ensuring that its interests will have a voice in Washington for years to come.

In recent years, the U.S. federal government has not been friendly to blockchain technology or the developers and entrepreneurs building out the ecosystem. Although the Biden Administration initially seemed open-minded about crypto—particularly after issuing an executive order in March of 2022 directing agencies to explore digital assets—the actual regulatory environment has been generally adversarial. Financial regulators, especially the Commodity Futures Trading Commission (CFTC) and, more aggressively, the Securities and Exchange Commission (SEC), have adopted a strategy widely perceived by the industry as "regulation by enforcement." This approach has left industry participants uncertain about what is legally permissible and deprived the public of the regulatory clarity and protections they need to navigate this space with confidence.

Frustration is mounting among voters, many of whom feel that the government’s actions have stifled innovation and ignored the benefits of decentralization and blockchain technology. Interestingly, this discontent is not limited to traditional power brokers; a growing number of everyday Americans, especially among communities of color, have developed a passionate interest in how crypto will be handled by legislators. For these voters, crypto assets are more than helpful financial tools, or speculative investments—they are seen as a form of personal property, a symbol of financial autonomy, and an opportunity to reshape an unfair financial system. These important tenets of decentralized finance resonate with voters.  Many Americans have been left behind by the current financial system and view crypto as a pathway to greater economic inclusion. Such voters want strong candidates that will overturn paternalistic government interventions aimed at limiting their ability to engage with digital assets.

Elected officials and candidates who understand and engage with this growing constituency will see tangible rewards at the ballot box in November. Savvy candidates have already begun communicating directly to crypto enthusiasts, acknowledging their concerns and promising a future where innovation can flourish without heavy-handed regulation. Former President Donald Trump, for instance, has made significant inroads with the crypto community. For over a year, Trump has been speaking directly to the “crypto faithful,” rallying their support with promises of more favorable regulatory frameworks. His efforts have paid off—his campaign has received a remarkable sum of over $5 million in cryptocurrency donations between July and the end of September, underscoring the potential electoral power of this once-fringe group. Vice President Harris has been late to the conversation, but has felt the pressure to comment on the rising issue over the last month, mentioning crypto at a Wall Street fundraiser and in one of her policy statements.

Technological innovation is morally neutral, and certainly not partisan: the blockchain is no exception. Crypto is designed to give users control over their own assets in a uniquely transparent manner. Unlike traditional web 2 companies, decentralized finance gives users greater control over the products they use. Data and property are controlled by the user, not automatically given over to black box intermediaries. These inherent characteristics of freedom, individuality, and fairness are in accord with American values from across the political spectrum. Unfortunately, members of both parties have worked over the last few years to turn crypto into a partisan issue, with some supporting it and others condemning it and hoping to benefit from what they thought could be an easy political pickings. The time for picking on crypto has come to an end. The technology, and the industry that supports it, is here to stay.

The 2024 election cycle will be a pivotal moment for the future of digital assets in America. As the public’s understanding of blockchain technology matures, and as more Americans see crypto as a tool for financial independence, lawmakers will need to navigate this evolving landscape carefully. The question is no longer whether crypto will play a role in American economic and political life, but rather how it will be integrated and regulated. The choices made by the next Congress and Administration will have profound implications for the future of innovation, financial autonomy, and economic justice in the United States. Candidates who fail to recognize the importance of these issues will find themselves out of step with an increasingly tech-savvy electorate, and potentially without a job in January.

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