Washington showing unexpected rapid acceptance of crypto industry

Lawmakers on both sides of the aisle are showing interest in crypto after years of skepticism. Momentum has been building faster than expected in the industry. However, doubts remain about whether Democrats will fully embrace crypto.

It’s not just Donald Trump: Politicians from both parties are increasingly warming up to crypto.

After previously being against bitcoin, Trump rebranded himself as the crypto candidate last year and plans to launch a strategic reserve for digital assets. Republicans have followed suit.

Surprisingly, Trump’s adversaries are also reconsidering their anti-crypto stances. While many Democrats are still unsure about digital assets, crypto lobbyists in Washington believe they are less hostile towards the industry than before. Anti-crypto arguments, like the one expressed by Elizabeth Warren in January, are becoming outdated.

“Embrace is too strong a word,” said Seth Hertlein, the global head of policy at crypto firm Ledger, regarding Democrats’ view on crypto. “I think there has definitely been a thaw, though.”

Following recent developments, “thaw” may be an understatement.

On Tuesday, the US Senate overwhelmingly passed a measure blocking a Biden-era regulation that would mandate tax reporting by certain decentralized finance firms. Crypto advocates argue it would be excessive. A substantial number of Democratic senators, along with Republicans, voted in favor, indicating changing sentiments towards crypto.

Bitcoin surged 8% following the vote, showing a shift in sentiment and anticipation of positive developments ahead.

Voters gave a clear verdict on crypto, proponents say

Historians may debate the reasons behind Trump’s victory and the Democrats’ loss in 2024. Nonetheless, the crypto community believes that the president’s support for their cause made a difference.

“It was a significant issue in the last election,” said Hertlein at the Bitcoin Investor Week conference in late February. “And I don’t think that’s lost on anyone in Washington.”

Pro-crypto candidates seemed to fare well in the last fall’s elections, including a notable win by Republican Bernie Moreno over Democrat Sherrod Brown, a crypto skeptic.

Although many associate crypto with the political right due to Trump’s support, there are indications that the Democratic platform, known for skepticism towards big business, could also align with decentralized finance.

According to Federico Brokate, head of the US business at crypto investment product issuer 21Shares, “This is not a politicized asset class.”

Perhaps the most pro-crypto politician in DC is Cynthia Lummis, a first-term Republican senator from Wyoming. She was reportedly the first Senator to own bitcoin and criticized the Biden administration’s regulations that she deemed harmful to the industry.

Lummis believes attitudes towards crypto are changing, and she aims to engage in discussions with both Democrats and Republicans on how the US should navigate this growing industry.