A series of Democratic politicians wrote a letter to the Democratic National Committee (DNC) on Friday, urging the party to turn away from its anti-crypto policies. In the letter shared by Riot Platforms vice president of research Pierre Rochard on X, Democrats advised the party to take a “forward-looking approach” toward digital assets and blockchain technology.
The letter noted:
“This area [crypto and blockchain] has enormous potential for American innovation, economic growth and financial inclusion.”
According to the letter, despite Democrats like Nancy Pelosi and Chuck Schumer supporting pro-crypto legislation, the public largely views the Democratic Party as anti-crypto. The letter attributed this negative public perception to the Securities and Exchange Commission’s (SEC) current approach to crypto regulation through litigation.
“We believe this past hostility does not reflect the progressive, forward-looking and inclusive values of our party.”
Democrats emphasized that this was an opportunity for Vice President Kamala Harris, as a “renewed” presidential candidate, to change this negative public perception.
Crypto has an outsized impact on potential election victory
According to a Coinbase survey, more than 52 million Americans, or about 15% of the U.S. population, own cryptocurrencies. Recent polling data also shows that approximately 19% of voters have purchased crypto, with 19% self-identifying as Democrats and 18% as Republicans, while the remainder are independents.
Additionally, crypto adoption is higher among Generation Z, Black and Latino Americans, and immigrants, all of whom are key constituencies for Democrats. Therefore the letter stated:
“From an electoral perspective, crypto and blockchain technologies have an outsized impact on ensuring victories during elections.”
This is especially true as crypto is “top of voters’ minds in swing states.” More than 20% of voters in key battleground states have declared crypto a major issue in the upcoming November elections, the letter warned.
In light of this, Democrats insisted that it is “critical” for the party to present a “compelling case to crypto voters.” They added that it is necessary to simultaneously ensure that consumers can benefit from “thoughtful and appropriate regulation.”
The Democrats further claimed:
“We believe this technology is nonpartisan and that the Democratic Party should also champion these innovations.”
The Democrats are calling on the party to take action
Democrats proposed four clear ways the party can change public perception. First, the party’s platform should include “pro-digital asset” language. The language should help spread information about the benefits of cryptocurrencies and blockchains.
Second, Democrats suggested that the party choose a vice presidential candidate with “a proven track record in handling digital assets.” Harris should also ensure that her running mate has a history of suggesting pro-innovation policies.
Third, Democrats proposed that the party choose the successor to Gary Gensler, the chairman of the SEC, to ensure that the individual is “pro-innovation.” Democrats noted that Gensler’s successor should have a crypto-friendly regulatory approach that would ensure U.S. competitiveness on a global scale.
Finally, Democrats suggested that Harris and the new SEC chief would work with crypto industry leaders to discuss regulatory policy.
It’s worth noting that the Democrats’ letter came just before Gemini crypto exchange co-founder Tyler Winklevoss accused the Biden-Harris administration of “reluctance” to engage with the industry. Winklevoss said he and his twin brother, Cameron Winklevoss, were not invited to a roundtable discussion in June after supporting former President Donald Trump.
Tyler Winklevoss also said the industry should align in demanding that the next SEC chairman be announced before the November elections.