Regulation
A major advance for cryptocurrencies
Hello and welcome to the FT Cryptofinance newsletter. This week, we’re looking at JD Vance’s crypto position.
For cryptocurrency advocates already excited about the prospect of former President Donald Trump returning to the White House, his running mate could hardly have been better.
In JD Vance, bitcoiners see one of their own. Not only does the Hillbilly Elegy author own a lot of bitcoin (at least in 2022, as his latest financial filings show), he has also championed cryptocurrencies as an alternative to traditional finance. That’s music to the ears of an industry that sees itself as the victim of unfounded hostility from U.S. regulators.
“Overall, it’s a positive thing for cryptocurrencies because the current administrative and regulatory situation in the U.S. has been very challenging,” said Alexander Blume, CEO of trading firm Two Prime. “It can only get better.”
by Vance rise in US politics was aided by famed venture capitalist and cryptocurrency enthusiast Peter Thiel, for whom Vance briefly worked early in his career. Thiel later helped fund Vance’s successful Senate bid and, in addition to giving him an education in technology, has even been credited with his spiritual awakening and conversion to Christianity.
The possibility of the Ohio senator serving as vice president has been widely praised by crypto enthusiasts, who were already very excited about the prospect of a Trump presidency and a pro-crypto outlook from Washington.
THE bitcoin price has increased nearly 11 percent to more than $65,000 this week after Trump survived an assassination attempt in Pennsylvania, as traders increased their bets on his victory in November.
Among Silicon Valley’s tech billionaires, cryptocurrency has become a clear dividing line in this election, with Trump’s and now Vance’s bullish positions netting them millions of dollars in donations, some paid in cryptocurrency, as well as likely votes.
Tech and crypto investor Balaji Srinivasan has been a vocal supporter of Vance, explaining on social media platform X that the senator “understands the military, media, technology, finance and politics,” while venture capitalist David Sacks also applauded the choice.
A more crypto-friendly White House would be a stark contrast to the tough rules and crackdown of the Securities and Exchange Commission led by Joe Biden-appointed chairman Gary Gensler, who has taken the likes of Coinbase and Ripple under fire in recent years.
Many cryptocurrency advocates point to Vance’s personal cryptocurrency holdings as a sign of his credentials and interest in the asset.
According to his most recent financial disclosures, he held between $100,000 and $250,000 in cryptocurrency on Coinbase in 2022. He also invested up to $15,000 in the decentralized exchange Ethex and between $15,001 and $50,000 in the right-wing video platform Rumble, on which Trump’s Truth Social advertises.
When Canada vowed to freeze the bank accounts of those protesting Covid-19 restrictions in 2022, Vance tweeted that “this is why crypto is taking off.” He also criticized Gensler, saying his approach to crypto regulation “is the exact opposite of what it should be.”
“On an ideological and philosophical basis, he seems to see value in bitcoin,” Blume said, adding that Vance’s outlook “has been all extremely positive, pro-crypto.”
While his plans are unclear, the Ohio senator may have more tricks up his sleeve and a better understanding of the industry than Trump, given that he has worked in Silicon Valley and sits on the powerful Senate Banking Committee.
Vance is already busy, circulate a draft proposal According to Politico, this would revolutionize the way Washington’s two main regulators oversee cryptocurrencies.
Of course, this is also the man who once called Trump “America’s Hitler”among other things, though those views appear to have changed considerably. If the polls are correct, we may soon learn a lot more about his true views on cryptocurrencies.
What do you think of Vance’s stance on cryptocurrencies? Write to me at nikou.asgari@ft.com
Highlights of the week
Soundtrack of the week
Ethereum co-founder Vitalik Buterin is opposing voting based solely on your views on cryptocurrency, in a message apparently aimed at the many cryptocurrency founders and executives who are donating large sums of money to Trump’s campaign.
In a blog post On his website, he said that the freedom of money in the form of cryptocurrency payments is not the only freedom that should determine people’s vote: the privacy of thoughts and communications is also important.
“Making decisions this way carries a high risk of going against the values that brought you into cryptocurrency in the first place.”
Cryptofinance is edited by Laurence Fletcher. Your comments are welcome