The Rise of Crypto in Politics

The 2024 U.S. election has spotlighted a growing voter openness to cryptocurrency and underscored the increasing significance of digital assets in the political arena. Amid ongoing challenges faced by both Grayscale Bitcoin (BTC) and Ethereum (ETH) ETFs, David LaValle, Grayscale's Global Head of ETFs, has remarked on a notable shift in the digital assets landscape.

LaValle observed:

"Digital assets are increasingly transcending political boundaries, becoming a matter of broad relevance across the political spectrum."

In a recent 'Proactive Investors' interview, LaValle noted the broadening acceptance of digital assets. He described it as a positive sign for their future growth and stability. He says digital assets have evolved from a partisan to a bipartisan issue. He even suggested that it is now a nonpartisan issue, calling it the most bullish indicator.

Survey Insights

A recent survey conducted by Harris Poll on behalf of Grayscale highlighted cryptocurrency's rising significance in the 2024 election cycle.

The survey has earned it the nickname 'Bitcoin Election 2024.' Nearly 32% of voters are now more open to learning about or investing in crypto than earlier in the year. Additionally, attitudes towards crypto are shifting positively.

A greater proportion of respondents see it as a viable long-term investment (23% versus 19% in November 2023), and an increased number of people are considering it for their investment portfolios (47% compared to 40%).

Political Responses

With the November election approaching, it will be intriguing to observe whether the chosen candidates embrace digital assets or dismiss them. Democratic Senator Chuck Schumer addressed the Crypto4Harris Town Hall, stating:

"We cannot afford to continue to sit on the sidelines because then we risk crypto going overseas to lowest common denominator countries where there will be no regulation."

He expressed his commitment to pushing for pro-crypto legislation in the U.S. Schumer added that he wants to bring members on both sides of the aisle together to create momentum for passing sensible legislation. This will help the United States maintain its status as the most innovative country in the world.

Candidate Positions

Former President Donald Trump has been notably vocal about his support for cryptocurrencies throughout his campaign. Conversely, Vice President Kamala Harris has shown less enthusiasm for the crypto sector.

This dynamic is reflected in Polymarket prediction polls. Trump initially led with 72% of the votes due to his pro-crypto stance. However, Harris's campaign gained ground with the 'Crypto for Harris' initiative.

Market Reactions

Speculation that Harris might appoint Gary Gensler as Treasury Secretary has stirred significant concern within the crypto community. Gensler is known for his skeptical stance on cryptocurrencies.

This shift resulted in Trump rising to the top with 52% of the votes again, while Harris fell to second place with 47%. The evolving political landscape and voter openness to crypto underscore the increasing importance of digital assets in the forthcoming election.