Blockchain in the United States: From Margins to Mainstream

From margins to mainstream: this paper analyzes blockchain's role in the 2024 U.S. election, focusing on candidates' promises and its future in the U.S.

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Date
Sep 24, 2024

TL:DR; 

  1. Pro-Crypto Stances: Donald Trump has adopted a pro-blockchain stance, advocating for Bitcoin to be part of the U.S. strategic stockpile, proposing a Bitcoin advisory council, and supporting regulations favorable to the blockchain industry. In contrast, Kamala Harris has not yet made her position on blockchain explicit, although her advisors and party members have been actively engaging with industry stakeholders.
  2. Trump's Crypto Strategy: Trump has pledged to fire SEC Chairman Gary Gensler, give amnesty to Ross Ulbricht (the founder of silk road), establish a Bitcoin Advisory Council, and ensure the U.S. government retains its Bitcoin holdings as part of a strategic stockpile.
  3. Harris's Outreach: Harris is positioning the Democrats as pro-business, engaging with major crypto firms like Coinbase and Ripple Labs to reset relations and promote innovation. 
  4. Big blockchain firms and stakeholders are now spending more on US elections than any other industry. Fairshake super PAC, a pro blockchain PAC has raised more money than their counterparts. However, they remain neutral. 
  5. Early polls indicate that blockchain voters are heavily inclined to vote pro-blockchain candidates, indicating the phenomenon of single issue voting. Additionally, Polymarket and other betting platforms indicate that the odds for both candidates are currently balanced, with neither holding a distinct advantage.
  6. Blockchain's Growing Influence: The election highlights the growing influence of the crypto community, with political parties forming blockchain advisory councils and working to integrate blockchain technology into mainstream American finance and governance.

Comparing Kamala Harris and Donald Trump: Where do they Stand on Blockchain?

Blockchain Issue Kamala Harris Donald Trump Explanation
Digital Asset Ownership Does the candidate currently own Bitcoin or Ethereum? No Yes Donald Trump’s digital asset portfolio is worth $20 million, although a significant portion consists of election donations.
Kamala Harris and her family do not hold any digital assets as of now.
Has the candidate ever owned or used Non-Fungible Tokens (NFTs)? No Yes Donald Trump licensed and released his first NFT collection, featuring digital trading cards depicting him as an astronaut, race car driver, cowboy, and superhero.
Kamala Harris does not own any NFTs.
Does their campaign accept any digital asset donations? No Yes The Donald Trump campaign accepts digital asset donations through the Coinbase exchange.
Kamala Harris or her election campaign has not indicated acceptance of digital asset donations
Political Position on Blockchain In their presidential campaign, have they attended any blockchain or related events? No Yes Donald Trump attended the Bitcoin Conference in Nashville, endorsing Bitcoin and blockchain, promising to make the U.S. the capital of the blockchain ecosystem.
Kamala Harris has not attended any blockchain events, but her close advisor expressed support at the Democratic National Convention.
Has the candidate explicitly expressed support for Bitcoin as a legitimate currency or asset? No Yes Donald Trump has explicitly endorsed Bitcoin and its value as a strategic reserve.
Kamala Harris has yet to make any explicit statement on Bitcoin.
Has the candidate made any statements regarding stablecoins? No Yes Donald Trump has committed to developing a framework around stablecoins.
Kamala Harris has not made any statements on the future of stablecoins.
Have senators and representatives from their respective party made any commitments or pledges toward blockchain-friendly policymaking? Yes Yes The Republican Party has repeatedly expressed a pro-blockchain stance, pushing for digital asset-friendly bills such as repealing SAB121 and pushing FIT21. U.S. Senator Cynthia Lummis introduced the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act.
Democrats have positioned themselves as pro-innovation and supportive of blockchain. They have also shown support for FIT21 in the congress.
Regulatory Framework What are their views on developing a unified framework for digital asset classification and regulation? Yes Yes Both Donald Trump and his party have explicitly mentioned developing a unified framework for blockchain. The details of bills are not mentioned.
Kamala Harris and the Democrats have hinted at a possible crypto bill, though details are not specified.
Industry Stakeholders Engagement Does the candidate have any prominent blockchain backers or supporters? Yes Yes Both candidates have engaged with key industry stakeholders. Donald Trump has met with Tyler and Cameron Winklevoss and Elon Musk to discuss pro-blockchain reforms.
Kamala Harris’s advisors have engaged with stakeholders like Coinbase, Circle, and Ripple Labs; she is yet to meet any stakeholder directly.
Positions on Ross Utrecht and Gary Gensler What is their viewpoint on Ross Utrecht? Status Quo Wants to give amnesty Donald Trump promised at the Libertarian National Convention to commute the sentence of Ross Ulbricht, the founder of the online marketplace Silk Road.
Kamala Harris's position remains the status quo
Does the candidate support Gary Gensler’s approach to regulating the cryptocurrency market? Status Quo Remove Donald Trump has pledged to remove Gary Gensler from the SEC.
Kamala Harris has hinted at moving Gensler to the Treasury Department, though this has not been confirmed.
Energy Generation What is their viewpoint on American New Energy Generation? Ambiguous Wants to Generate Donald Trump wants to generate new energy that will allow US citizens to mine more bitcoin.
New Energy While Harris has been seen as a pro-green energy advocate, she remains ambiguous about her energy policies.
Bitcoin as Strategic Stockpile What is the candidate's viewpoint for digital assets or bitcoin as a strategic stockpile? No Yes, want to use Bitcoin as Strategic Stockpile Donald Trump plans to use Bitcoin as a strategic stockpile and hold it as a reserve.
Kamala Harris has not provided any direction on Bitcoin or digital assets as strategic reserves.
Has the candidate or their party laid out any plan for bitcoin reserve development? No Yes Donald Trump has promised to build a Bitcoin reserve for the U.S. economy over the next four years, with an initial plan to hold 1 million Bitcoins. However, no explicit mechanism has been detailed by the Republicans.
No statements have been provided by Kamala Harris or her party for strategic reserve development.
Has there been any conversation on gaining geopolitical competitive advantage on Blockchain? No Yes Donald Trump has expressed intentions to challenge China’s dominance in Bitcoin mining and promote “Made in USA” Bitcoin.
Neither Kamala Harris nor her party has discussed Bitcoin as a geopolitical advantage.
Past Party Action on Blockchain How has their party in the recent past supported or opposed digital asset and blockchain technology? Opposed, the Biden administration vetoed SAB21. Yes, Republicans have led the passing of FIT21 bill While both Democrats and Republicans engage with the blockchain industry, Republicans have historically taken a friendlier stance toward blockchain regulation, including the FIT21 bill, a landmark for the industry
Have they made any statements regarding the development of a political committee on blockchain or bitcoin? Yes Yes Donald Trump has pledged to establish a Bitcoin and crypto presidential advisory council.
Kamala Harris has engaged with stakeholders to reset relations with the industry, but no explicit signals have been given on developing a standing committee on Bitcoin or blockchain
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