Galaxy: Cryptocurrency holders will become a strong force in the US election

Source: Blockchain Knight

According to the latest market review released this week by Crypto asset financial services company Galaxy Digital (Galaxy Digital), voters holding BTC and other Crypto assets may have a decisive influence on the upcoming US presidential election.

The report noted that recent polls show that the ownership of Crypto assets is growing, especially among young voters and people of color.

And the report believes that these "Crypto asset voters" may make a choice in the fierce competition between President Biden and former President Trump.

Galaxy Digital's report pointed out: "As November approaches, investors begin to pay attention to the impact of votes on the market, and the Crypto asset industry may play a greater role than ever."

The report cited a poll by Crypto venture capital firm Paradigm in March, which found that 19% of registered voters own Crypto assets, of which more than 11 million people own Crypto assets worth more than $1,000.

The Paradigm poll also found that Crypto asset owners currently support Trump at 48% and Biden at 39%.

Unrelated to owning Crypto assets, the Paradigm poll reflects the results of other national polls, that is, 45% of registered voters support Trump and 42% support Biden, and the competition is very close.

But the Paradigm survey shows that some 2020 Biden voters who own Crypto assets are turning to Trump, possibly because of "actions taken by some agencies in the Biden administration".

While it did not specify what those actions might be, the crypto asset industry has widely slammed the SEC (Securities and Exchange Commission) under Gary Gensler, condemning it for regulating digital assets through enforcement actions rather than clear rules.

Biden's senior advisers have also called for stricter regulation of crypto assets. In contrast, congressional Republicans have sought to pass legislation to limit federal oversight of crypto assets.

Meanwhile, Trump has promised to block the creation of a central bank digital currency (CBDC) if he is re-elected, making digital assets a key issue in the campaign.

"It's clear that one of the things these (crypto asset owners) groups are concerned about is how policymakers will treat crypto assets," said Paradigm, a view echoed by Galaxy Digital's report.

Galaxy Digital’s latest report states: “Only 32% of people with voting rights own any kind of stock, further demonstrating how deeply entrenched Americans are in crypto ownership.”

Crypto-focused political action committees (PACs) are already using large sums of money to intervene in key 2024 races.

One leading PAC, Fairshake, has raised more than $85 million from major crypto players like Coinbase and Andreessen Horowitz.

The company spent more than $10 million to help defeat a crypto-skeptical Democrat in the California Senate primary.

Fairshake now plans to target four key Senate races: Ohio, Montana, Michigan, and Maryland, which could determine control of the Senate.

In Ohio and Montana, Fairshake will focus on the general election, as incumbent Democratic senators in both states have questioned the necessity of crypto assets.

The PAC has not yet announced which candidate it will support in these states.

However, Matthew Sigel, head of digital asset research at investment firm VanEck, believes that the Biden administration is hindering the wider adoption of Crypto assets, and that Trump's victory could boost the industry.

"The Biden administration doesn't want banks and brokers to touch digital assets, but if there is a change in the presidency, we would see more support for the industry," Sigel said in a previous interview with Decrypt.

The growing influence of Crypto asset holders as an electoral force coincides with a surge in popularity for BTC and other digital assets.

The largest Crypto asset hit an all-time high of more than $73,000 last month, driven by the launch of the first BTC ETFs in the United States.

Galaxy Digital's report noted: "Under continued demand pressure from the newly launched spot BTC ETF, 'digital gold' has surpassed $70,000 for the first time in history."

"BTC's mainstream adoption has received further support on several fronts this month, including growing interest in BTC from major financial advisors and pension funds."

But the report cautions that BTC's mining rewards are about to be "halved" next week, which has been a catalyst for larger gains in the past. But given that BTC has soared to new highs before this event, this cycle may not have the same effect.

Nevertheless, as the "dark cloud" of the criminal case against FTX founder Sam Bankman-Fried has dissipated, Galaxy believes that the Crypto asset industry is ready for growth as the 2024 election approaches.

The report concludes: "We hope to provide a clear path for a bright future in the digital asset space by removing bad actors."