US Elections and Crypto Assets: Differences in Attitudes between the Republican and Democratic Parties

Recently, the attitude of the U.S. political arena towards Crypto Assets has attracted widespread attention. A well-known political figure made a series of statements supporting Bitcoin at the 2024 Bitcoin Conference, sparking heated discussions among Crypto Assets enthusiasts. He promised that if elected, he would implement policies favorable to the development of Crypto Assets, such as changing the heads of regulatory agencies and retaining the government's holdings of Bitcoin. These statements elicited a warm response on-site.

As factors such as ETFs, regulatory policies, interest rate changes, and elections continue to affect the crypto market, the United States has become a key force in the pricing of crypto assets. The upcoming U.S. elections' impact on the crypto market cannot be ignored, and the crypto community has been closely monitoring the relevant developments.

However, opinions vary regarding this political figure's commitments. Some believe this is a positive signal, while others suspect it is merely a tactic to gain votes. To understand the credibility of these commitments, we need to start by discussing the ideological differences between the Republican and Democratic parties.

Why Do Republicans Favor Bitcoin?

The core values of the Republican Party include supporting free markets, economic policies that promote individual liberty, and conservative social views. They tend to support technological innovation, advocate for the protection of personal privacy and security, and oppose excessive centralized monetary control and financial regulation. These ideas are highly aligned with the core concept of Bitcoin, which empowers individuals with financial power.

Bitcoin, as an emerging technology and investment opportunity, is naturally more likely to gain the favor and support of the Republican Party. This can also be corroborated by the changing positions of certain tech entrepreneurs. For example, a well-known entrepreneur recently stated that the party he supports has shifted from the Democratic Party to the Republican Party because he believes the latter aligns more closely with his vision of American values.

Nevertheless, we should not overinterpret the statements of certain political figures at the Bitcoin conference. These commitments may be discounted during the actual governance process, as there are many interests to balance from campaigning to governing. The market's muted response to these statements also reflects the rational attitude of investors.

The Democratic Party's Attitude Towards Bitcoin

In contrast, as the leading force of the current government, the Democratic Party's attitude towards Bitcoin is relatively lukewarm. Democratic leaders, including the current president, do not seem to have a particular fondness for Bitcoin.

This difference in attitude also stems from differing values. The Democratic Party typically holds a left-leaning stance, with policy proposals that include focusing on environmental impact and sustainability, addressing financial inequality and social justice issues, as well as strengthening regulation. These ideas do not fully align with the core values of Bitcoin.

No matter who is elected, the historical trend is difficult to change.

It is worth noting that the Democratic Party's stance on Crypto Assets is not monolithic. In a vote regarding the accounting policy for Crypto Assets, a considerable number of Democratic lawmakers expressed their support. As Crypto Assets become increasingly internationalized and mainstream, there may be more progress in the future.

From a more macro perspective, America's core values play an important role in the development of Crypto Assets. Historically, the United States banned individuals from holding gold, but this policy was ultimately seen as a failure because it contradicted the principles of personal freedom and property rights. Today, Americans are well aware that prohibiting the holding of Bitcoin is far more difficult than banning gold, and such an approach may conflict with the ideals of freedom and individual rights in the United States.

Regardless of whether the Democratic Party or the Republican Party is in power, it is unlikely that the foundational principles of the United States will be fundamentally changed. Crypto Assets like Bitcoin are able to grow and develop in this environment, gradually moving towards the mainstream financial sector.