KEY POINTS
- The lawmakers said crypto and blockchain hold 'immense potential' for US innovation and economic growth
- They urged the DNC to adopt pro-digital asset language in the party's 2024 platform
- They also encouraged the selection of a SEC chief who is 'pro-innovation'
More and more Democratic policymakers are turning toward the digital assets industry, as a group of representatives and three 2024 candidates urged the Democratic National Committee to adopt a pro-crypto platform and take a more open-minded approach when it comes to cryptocurrencies.
The Democratic Party has taken a more cautious stance on digital assets for years, with some members even being branded by the industry as "anti-crypto" due to their actions that targeted the emerging sector.
Democrats urge crypto support
In a letter to the DNC on Saturday – the last day of the Bitcoin 2024 conference – 14 Democratic House members and three candidates urged the Committee to "take a forward-looking approach to digital assets and blockchain technology," as the said sectors hold "immense potential for American innovation, economic growth, and financial inclusion."
BREAKING: 🇺🇸 Democrats wrote to the DNC asking to shift away from the anti-#Bitcoin stance, responding to Trump speaking at the Bitcoin conference. pic.twitter.com/cgN4VhmKha
— Bitcoin Magazine (@BitcoinMagazine) July 27, 2024
The group pointed out that there is a public perception of the party having a negative stance on digital assets, which the lawmakers said was "largely due to the current SEC's approach to these transformative technologies." They said the "previous hostility" of the U.S. Securities and Exchange Commission wasn't reflective of the party's "progressive, forward-looking, and inclusive values."
Nominee can do something
The group then noted that "a refreshed leader of the [presidential] ticket" has an opportunity to change the crypto public's perception. Vice President Kamala Harris has received President Joe Biden's endorsement, and she has become the de facto nominee after clinching enough delegates for the nomination.
Numbers don't lie
The group, which includes Rep. Wiley Nickel of North Carolina and Rep. Ro Khanna of California, reiterated that "from an electoral standpoint, crypto and blockchain technologies have an outsized impact in ensuring victories up and down the ballot," with crypto being "at the top of voters' minds in swing states."
They said the existing U.S. financial system has left the American population behind, and they believe cryptocurrencies represent "a revolutionary shift that can enhance transparency, reduce fraud, and create a more inclusive financial system."
4 things to change the public's perception
The Democratic representatives and candidates noted that there are four things the Committee should start with, and the first is to include "pro-digital asset language" in the party's platform.
Next, the party should select a vice presidential candidate who is "sophisticated" in crypto policy – someone who has a history of engaging with the technology and championing pro-innovation legislation.
Third, the party should appoint a "pro-innovation SEC Chair" who will embrace a regulatory approach that focuses not just on protecting investors, but also on fostering growth in the burgeoning industry.
Finally, the group said the party should start engaging with key players and stakeholders within the crypto space. "Open dialogue with industry experts will provide valuable insights and help craft policies that encourage growth while ensuring consumer protection and financial stability," they wrote.
X users react
Crypto users on X have had mixed reactions to the change of heart among some Dems. One said the "#politicapitulation will continue," and Sen. Elizabeth Warren of Massachusetts will be left with no choice but to "fold" to what the party wants.
The #Politicapitulation will continue. Warren will fold, she has no choice.
— Adrian Morris (@Adrian_R_Morris) July 27, 2024
One user said it was good to see that some Democratic policymakers were now acknowledging "the incredible missteps their party has made in recent years in crypto," but their move of urging change was "too little, too late."
Nice to see some Dems acknowledge the incredible missteps their party has made in recent years on crypto. But this is too little, too late. They must face consequences for demonizing millions of crypto users and for crippling the American industry.
— Sal (@salwilliam) July 27, 2024
Some were more positive about the shift, saying it was good to see Democrats educating themselves about Bitcoin and crypto. One user said the party should "prove" their intentions toward the crypto industry before the November elections.
