Stances of Republicans and Democrats on Cryptocurrency

Republican Party

Donald Trump (Presidential Candidate)

Photo caption: This image, taken by photographer Evan Vucci on July 13, 2024, shows former U.S. President and presumed Republican nominee Donald Trump being escorted offstage after a failed assassination attempt. In the photo, Trump raises his fist defiantly, with blood running down the right side of his face.

Although Trump opposed cryptocurrencies during his previous term in office, his stance shifted dramatically during the 2024 election campaign. Trump has emerged as a fervent supporter of cryptocurrency, actively engaging with the crypto community and even enlisting Elon Musk, a prominent cryptocurrency advocate, as an advisor.

Trump’s first official expression of support for cryptocurrency this election cycle came at the July Bitcoin Conference. Trump proposed integrating Bitcoin into the U.S. strategic reserves at this event if elected. He also assured cryptocurrency enthusiasts that, under his leadership, the United States would maintain a leading position in the crypto space. He pledged to counter Biden’s suppression of cryptocurrencies and ensure that the future of Bitcoin and crypto would be forged within the U.S. rather than driven offshore.

Trump’s Digital Trading Card Collection on OpenSea

Following the Bitcoin Conference, Trump officially launched his third series of NFTs. Back in December 2022, Trump released his first NFT collection, “Trump Digital Trading Cards,” [1] priced at $99 each. The collection sold out in less than a day. In 2023, Trump introduced two new NFT series: “Trump Digital Trading Cards Series 2” and “Mugshot Edition,” offering perks such as Trump-hosted dinners and signed memorabilia.

According to Trump’s personal financial disclosures, beyond his cryptocurrency holdings, he has earned over $7.15 million from these three NFT series. Additionally, Trump’s wife, Melania Trump, has reportedly made over $330,000 in transaction fees or sales related to digital trading cards or NFTs. In July, Trump announced plans for a fourth NFT collection, further cementing his presence in the digital asset space.

Trump’s interest in cryptocurrency extends beyond himself. His son, Eric Trump, and Donald Trump Jr. have launched a cryptocurrency project named World Liberty Financial (WLFI). The initiative aims to bolster the position of the U.S. dollar within the decentralized finance (DeFi) ecosystem by introducing a dollar-pegged stablecoin.

The WLFI token is designed to provide stable value storage and facilitate DeFi services, including lending and liquidity pools. Token holders will also have governance rights, allowing them to vote on critical decisions for the platform. Although WLFI is still in its presale stage, with its product roadmap yet to be fully revealed, it has drawn significant attention.

At the Libertarian National Convention in Washington, D.C., Trump promised to commute the sentence of Ross Ulbricht, the founder of Silk Road, on his first day in office if re-elected. Trump has strongly opposed central bank digital currencies (CBDCs), vowing to limit their issuance and reduce government control over stablecoins. Furthermore, he pledged to remove Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), often criticized by the crypto community as being anti-crypto.

Elon Musk as Campaign Advisor

Photo caption: Elon Musk and Donald Trump attending a campaign event in Pennsylvania. (Source: Associated Press)

Donald Trump’s stance on cryptocurrency has undergone a dramatic transformation in recent years, but equally notable is the evolution of his relationship with Tesla CEO Elon Musk. What was once a contentious rivalry became a political partnership during this election cycle, marked by mutual support and collaboration.

In July, Musk publicly declared his support for Trump’s candidacy, solidifying this alliance. According to Federal Election Commission records, Musk has since donated $75 million to pro-Trump political action committees (PACs). This makes him the second-largest donor backing Trump, trailing only Sheldon Adelson, the casino mogul heir, who contributed $95 million.

Beyond financial backing, Musk has actively participated in Trump’s campaign events. Notably, he joined Trump on stage at a rally in Butler, Pennsylvania, wearing a MAGA (Make America Great Again) hat—a symbol synonymous with Trump’s movement. During the event, Musk delivered a speech praising Trump’s leadership and resilience, particularly in navigating crises, which he described as embodying “true masculinity.”

Elon Musk is a proponent of the cryptocurrency Dogecoin ($DOGE). Musk has allowed users to purchase small accessories in Tesla’s store using Dogecoin. As a celebrity symbol of meme coins, nearly every time Musk mentions cryptocurrency on social media, it triggers a rise in Dogecoin’s value. Even during SpaceX’s Starship test flights, Dogecoin experiences pumps in its value. Additionally, both Musk and Donald Trump are among the most frequently turned-to figures for meme coin creations.

While Musk’s alignment with Trump may involve other considerations, Trump has managed to secure the support of many cryptocurrency enthusiasts after gaining the industry’s biggest influencer on his team.

Vance (Vice Presidential Candidate)

A photo taken on July 15 shows Trump and Vance attending the Republican National Convention. (Source: The New York Times)

As Trump’s running mate, vice-presidential candidate J.D. Vance is also an unequivocal supporter of cryptocurrencies.

According to Vance’s disclosed financial reports, as of 2022, he held between $100,000 and $250,000 worth of Bitcoin on Coinbase.

Vance has made multiple public statements in support of cryptocurrencies. In 2022, when the Canadian government froze the bank accounts of individuals involved in the Ottawa trucker protests, Vance posted a subtle critique, stating:

“This is why cryptocurrency is thriving. If your political views are wrong, the government will cut off your access to banking services.”

In addition, a group of Republican senators led by Vance once sent a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, expressing concerns over the SEC’s lawsuit against the crypto company DEBT Box. They accused SEC attorneys of making misleading statements during the case. The senators criticized Gensler’s handling of the cryptocurrency industry and called for stricter oversight of the SEC’s enforcement actions.

Democratic Party (Harris)

Kamala Harris (Presidential Candidate)

Democratic presidential candidate and Vice President Kamala Harris delivered a speech at the Democratic National Convention in Chicago on August 22, 2024. (Associated Press Photo/Paul Sancya)

Compared to Trump’s enthusiastic support for cryptocurrencies, Harris has recently expressed support for the industry, but her stance is far less vigorous.

In September of this year, Coinbase’s Chief Financial Officer Alesia Haas revealed that Harris is using the company’s Commerce platform to accept cryptocurrency donations. Subsequently, a Coinbase spokesperson confirmed that Future Forward, a super PAC supporting Harris, had joined Coinbase Commerce. While Coinbase clarified that Future Forward was using their platform and not Harris herself directly accepting cryptocurrency donations, this news was still widely celebrated within the crypto industry.

In a recent speech, Harris departed from her previously cautious position and pledged support for a regulatory framework for digital currencies. She highlighted that over 20% of African Americans have owned or currently own cryptocurrency assets. Her plan aims to ensure that digital asset owners and investors benefit from a clear regulatory framework, thereby protecting African American men and other groups participating in this market.

Harris’s stance on cryptocurrency policies is more favorable than Biden’s but still less so than Trump’s. She has committed to improving the regulatory environment for the U.S. crypto industry but maintains a cautious approach on issues such as taxation, Bitcoin mining, and self-custody.

Tim Walz (Vice Presidential Candidate)

(Photo of Vice Presidential Candidate Tim Walz, Source: BBC News)

Harris’s running mate, vice-presidential candidate Tim Walz, has not softened his stance on cryptocurrency as Harris has. Walz advocates for stricter regulation of the cryptocurrency industry.

According to Tim Walz’s profile on iSideWith, he believes that the U.S. government should impose stricter controls on cryptocurrency use but does not support recognizing cryptocurrency as a legal form of payment. Additionally, he does not believe that cross-border cryptocurrency transactions should be outright banned.

Furthermore, as reported by The Block, the American Association of Retired Persons (AARP) noted that Walz has not publicly discussed cryptocurrencies extensively. However, during his tenure as governor, Minnesota passed legislation to strengthen the regulation of cryptocurrency self-service terminals.

Summary

In this year’s election, both the Democratic and Republican parties have shown a generally pro-cryptocurrency stance. Trump’s Republican campaign team is fervently pro-crypto, while Harris’s Democratic Party takes a more neutral yet friendly approach.

From a long-term perspective, the U.S. presidential election is likely to have an optimistic impact on the cryptocurrency industry. However, in the short term, a Trump victory would bring more immediate benefits to the sector.

Election Progress

Trump and Harris Win Probabilities on Polymarket as of October 31

On the cryptocurrency prediction platform Polymarket, the market forecasts Trump’s probability of winning this election at 62.1%, ahead of Harris’s 37.8%. While the race between the two candidates remains tight in the real world, the difference in win probabilities reflected on Polymarket highlights a preference among cryptocurrency enthusiasts for a Trump victory. [1]

Trump and Harris Approval Ratings

According to the U.S. polling site FiveThirtyEight (538), Harris’s latest approval rating in the real world stands at 48.1%, slightly ahead of Trump’s 46.7%, with Harris leading by 1.4 percentage points. Furthermore, since August, Harris has consistently maintained an edge over Trump. [2]

Distribution of Early Voting Across the U.S.

As of 2:00 a.m. local time on October 30, over 50 million voters across the United States had cast their ballots early for the 2024 presidential election. [3]

Support Rates in the Cryptocurrency Community

According to a nationwide poll conducted by Fairleigh Dickinson University from August 17 to 20, 50% of all voters support Harris, compared to 43% for Trump. However, among voters who are potential cryptocurrency holders, Trump leads by 12 percentage points (50% vs. 38%), whereas among voters without cryptocurrency holdings, Harris holds a 12-point lead (53% vs. 41%). [4]

Conclusion

The introduction of Bitcoin ETFs has triggered a large-scale influx of traditional U.S. capital into the cryptocurrency market, further enhancing public recognition of cryptocurrencies. Additionally, cryptocurrency donations have gradually become a popular form of political contribution. As a result, both parties have placed significant emphasis on winning over cryptocurrency supporters during this election cycle. At the level of presidential candidates, almost all have, to varying degrees, expressed favorable attitudes toward cryptocurrencies.

Cryptocurrency enthusiasts favor more aggressive and permissive policies, making Trump their top choice. However, Harris currently holds an edge over Trump in approval ratings. As more voters cast their ballots, Harris’s probability of winning appears slightly higher.

In the short term, a Trump victory would likely provide a much greater boost to the cryptocurrency market than Harris’s. However, the differences between the two candidates’ impacts on the crypto space may not be significant in the medium to long term.