Galaxy Digital: Crypto holders will become a key force in the U.S. election
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Galaxy Digital: Crypto holders will become a key force in the U.S. election
The role of crypto voters in the U.S. election has become increasingly prominent, and policy directions may impact the digital asset market.
Navigating Web3 tides with focused insightsSource: Decrypt
Compiled by: Blockchain Knight
According to the latest market commentary released this week by Galaxy Digital, a financial services firm focused on crypto assets, voters who hold BTC and other digital assets could play a decisive role in the upcoming U.S. presidential election.
The report highlights recent polling data showing that ownership of crypto assets is growing steadily, particularly among younger voters and people of color.
It suggests these "crypto asset voters" may influence the tight race between President Biden and former President Trump.
Galaxy Digital stated: "As November approaches, with investors increasingly focused on how ballots might impact markets, the crypto industry could play a larger role than ever before."
Citing a March survey by crypto venture firm Paradigm, the report found that 19% of registered voters own crypto assets, including over 11 million Americans holding more than $1,000 worth of digital assets.
Paradigm's poll also revealed that crypto asset owners currently support Trump at 48%, compared to 39% for Biden.
Beyond crypto ownership, Paradigm’s survey reflects broader national polls showing a close race—45% of registered voters back Trump versus 42% for Biden.
However, Paradigm's findings suggest that some crypto-owning voters who supported Biden in 2020 are now shifting toward Trump, possibly due to 'actions taken by certain agencies within the Biden administration.'
While not specifying what those actions were, the crypto industry has widely criticized the SEC under Gary Gensler for regulating digital assets through enforcement actions rather than clear rulemaking.
Senior Biden advisors have also called for tighter crypto regulations. In contrast, Republican lawmakers in Congress have sought legislation to limit federal oversight of crypto assets.
Meanwhile, Trump has pledged to block the creation of a central bank digital currency (CBDC) if re-elected, making digital assets a key campaign issue.
"Clearly, one thing these [crypto asset owners] groups care deeply about is how policymakers will treat crypto," Paradigm said—a view echoed in Galaxy Digital’s report.
Galaxy Digital noted: "Only 32% of voting-age Americans own any form of stock, further underscoring the entrenched position of crypto ownership among U.S. households."
Crypto-focused political action committees (PACs) are already spending large sums to influence key 2024 races.
A leading PAC, Fairshake, has raised over $85 million from major players like Coinbase and Andreessen Horowitz.
The group has already spent over $10 million helping defeat a skeptical Democrat in California’s Senate primary.
Fairshake now plans to target four pivotal Senate races—in Ohio, Montana, Michigan, and Maryland—that could determine control of the Senate.
In Ohio and Montana, Fairshake will focus on the general election, as both incumbent Democratic senators have questioned the necessity of crypto assets.
The PAC has not yet announced which candidates it will support in these states.
Still, Matthew Sigel, head of digital asset research at investment firm VanEck, believes the Biden administration is hindering broader crypto adoption, while a Trump victory could boost the industry.
Sigel told Decrypt previously: "The Biden administration doesn't want banks and brokers touching digital assets, but if there's a change in the presidency, we’ll see much stronger support for the industry."
The rising electoral influence of crypto holders coincides with surging popularity of BTC and other digital assets.
Fueled by the launch of the first U.S.-listed BTC ETFs, the largest crypto asset hit a record high above $73,000 last month.
Galaxy Digital noted: "Driven by sustained demand pressure from newly launched spot BTC ETFs, 'digital gold' broke past $70,000 for the first time in history."
"Mainstream adoption of BTC gained further momentum this month, including growing interest from major financial advisors and pension funds."
However, the report cautions that next week’s BTC mining reward “halving” event—historically a catalyst for bigger price gains—may not produce the same effect this cycle, given BTC has already surged to new highs ahead of the event.
Nonetheless, with the "clouds" surrounding the criminal case against FTX founder Sam Bankman-Fried beginning to lift, Galaxy believes the crypto industry is well-positioned for growth as the 2024 election nears.
The report concludes: "We hope that by removing bad actors, we can pave an unobstructed path toward a bright future for the digital asset ecosystem."
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