Bitcoin Nashville 2024 | From Skepticism to Support: Politicians Embrace Bitcoin as a New Financial Frontier
Politics took center stage at the Bitcoin Conference held in Nashville this year. With the US Presidential election taking place only about 100 days later, candidates took the stage to make their case to the crypto crowd about their plans for the technology and why attendees would want to vote for them this November.
From the presidential race, former president and Republican presidential nominee Donald Trump and Independent candidate Robert F Kennedy Jr (RFK) both had prime speaking slots. A long list of Republicans made remarks, including senators Cynthia Lummis, Marsha Blackburn, and Bill Hagerty, Senate candidates Bill Moreno and John Deaton (who we met in Denver!), as well as former Presidential candidate Vivek Ramaswamy. Two Democratic crypto supporters from the House, Ro Khanna and Riley Nickel, spoke at the conference as well. Such a sizeable crowd highlights just how much attention this batch of politicians are paying to the space and how important it is to both parties’ agendas.
Donald Trump states his crypto case
Trump lambasted President Joe Biden and the Democrats’ stance on crypto, calling to “end their crusade” on the technology. He suggested that Republicans are the “party of crypto”, urging attendees who predominantly work in the industry to give him their vote based on this position. As recently as 2021, he referred to Bitcoin as a scam. Trump also insisted that the government should hold all Bitcoin and crypto seized, while at the same time expounding crypto as ultimate freedom from government overreach, eliciting cries of hypocrisy from libertarians who point out that the mere existence of this seized property by the state flies directly in the face of individual freedom and government overreach.
Other promises included creating a US Government strategic stockpile of BTC and advisory council, firing SEC Chairman Gary Gensler, commuting Ross Ulbricht’s sentence, and never allowing the US to develop a Central Bank Digital Currency (CBDC). Listeners did note some weird remarks, including his tiding to “Have a good time with your Bitcoin and your crypto and whatever else you’re playing with,” as well some pandering in remarks such stating the price of Bitcoin is going “to the moon,” a common meme in the crypto community.
RFK and his “orange heart”
RFK made even more bold remarks. He insisted that as president he would sign an executive order mandating the purchase of 550 bitcoin per day until the US Government held a national reserve of 4 million BTC, about 20% of Bitcoin’s total final supply. Just 450 BTC are mined per day at the current block reward rate. “Only Bitcoin can save the dollar,” he remarked, as part of his case for establishing this reserve.
He believes that Bitcoin is inevitable, and asserts that the rest of the government is finally coming around to this conclusion as well, but are behind on policy ideas. Kennedy too wishes to remove Mr. Gensler from his post. He recognizes Bitcoin as an important tool for preserving individual freedom, citing the example of trucker protests in Canada as a model example of how Bitcoin’s features could have defended liberty.
More Republicans share their take
FOMOing in, Senator Cynthia Lummis proposed a bill for the U.S. government to acquire 5% of the total Bitcoin supply over 5 years, or around 1 million Bitcoins. This is primarily to help reduce the national debt, emphasizing Bitcoin’s potential to appreciate compared to assets that annually depreciate 2%. Her speech includes plans for a secure Bitcoin reserve stored geographically in diverse vaults as part of a strategic shift from holding U.S. dollars to investing in Bitcoin to build a reserve starting with 210,000 Bitcoins with the goal of positioning the U.S. favorably in the evolving cryptocurrency landscape by leveraging Bitcoin as a strategic asset, receiving enthusiastic support from conference attendees given Lummis’ previous advocacy against a proposed 30% Bitcoin mining tax by arguing it would harm energy infrastructure, describing the plan’s significance as a “Louisiana Purchase moment” in U.S. financial history looking to the future outlook of the bill.
In recent months, Senator Marsha Blackburn has emerged as a vocal advocate for the cryptocurrency industry, making several significant statements and proposals that could shape the future of digital assets in the United States. Her initiatives reflect a growing recognition of the potential benefits of cryptocurrencies, including job creation, economic growth, and technological innovation. Senator Blackburn has consistently emphasized the need for clear and consistent regulatory frameworks for cryptocurrencies. She argues that regulatory uncertainty has hindered innovation and investment in the crypto space. By advocating for well-defined regulations, Blackburn aims to create an environment where crypto businesses and investors can thrive without fear of arbitrary enforcement actions, while at the same time ensuring that investors are operating within the law and with regulated entities, therefore enjoying protection and comfort. Another of Blackburn’s key proposals is to leverage cryptocurrencies to promote financial inclusion. She believes that digital assets can provide access to financial services for unbanked and underbanked populations, both in the U.S. and globally.
Blackburn has highlighted the importance of blockchain technology beyond cryptocurrencies. She advocates for policies that support the development and adoption of blockchain solutions in various sectors, including supply chain management, healthcare, and voting systems. By fostering a blockchain-friendly environment, Blackburn aims to position the U.S. as a leader in this transformative technology.
At the conference, Senator Blackburn advocated for a balanced regulatory approach for cryptocurrencies that encourages innovation while protecting consumers. She believes clear, consistent rules are needed to provide certainty. Blackburn also sees opportunities for crypto to promote financial inclusion by giving the unbanked access to financial services. Additionally, she argued the crypto industry can drive economic growth and job creation in the US if given the right supportive policies and incentives. While acknowledging environmental concerns of mining, Blackburn called for more sustainable practices and renewable energy use. Finally, Blackburn stressed the importance of cybersecurity, national security and collaborating between government and industry to combat illicit activities through compliance with AML/KYC regulations. Overall, her positions recognized both the opportunities and risks of cryptocurrency and the need for a balanced, collaborative regulatory response.
Senate Candidate John Deaton, who has submitted briefs and made frequent remarks on Ripple and Coinbase’s court cases, revealed that 82% of his net worth is invested in Bitcoin, as he aims to unseat Senator Elizabeth Warren in the Massachusetts Senate race.
He is advocating a position opposed to that of his rival Warren, on issues of cryptocurrency regulation, such as her support for a CBDC. Deaton has significant community backing for his legal advocacy despite trailing Warren in recent polls by over 20 points. He is also facing competition from other candidates like Ian Cain, endorsed by Senator Lummis in the upcoming Republican primary, with Deaton’s campaign receiving a $1 million donation from Ripple to support his efforts against Warren heading into the scheduled September 3rd primary and November 5th general election.
Democrats wade in
Democrats Ro Khanna, Representative from California, and Wiley Nickel, Representative from North Carolina, were the only two elected members of the party to speak at the conference. Mr. Khanna expressed support for sensible regulation of the technology, referring to it as a transformative force akin to cell phones, laptops, or AI, and rebuffed the idea that blockchain should be a partisan issue. Mr. Nickel expressed similar ideas around the need for regulation and to keep partisan politics out.
Vice President and presumptive Democratic presidential nominee Kamala Harris was in last minute talks to make an appearance as well, though this ultimately did not take place. However, her office has signaled a softening stance as compared to what Biden has been perusing, and 14 prominent Democrats (including Khanna and Nickel) who have been actively pro crypto for years have recently signed and issued a letter suggesting that Democrats need to take a more supportive position towards cryptocurrency and blockchain, outlining several policies that they favor.
Signatories of the letter begin by acknowledging the perception that the Democratic Party views digital assets negatively due to the SEC’s approach. However, the signatories believe this does not align with progressive values. They note cryptocurrency adoption rates are higher among key Democratic demographics and emphasizes crypto as an important 2024 election issue in swing states.
The letter also argues digital assets can enhance transparency, reduce fraud, and create a more inclusive financial system. It makes four requests: include pro-crypto policies, select a vice president knowledgeable in crypto, choose a pro-innovation SEC chair, and engage industry experts.
This suggests a potential significant shift in the Democratic stance on crypto and blockchain. Embracing digital assets could appeal to growing demographics and reinforce financial inclusion goals. If adopted, it may lead to favorable regulations spurring innovation, economic growth and financial access aligned with Democratic priorities.
In the past, the Democratic party has generally taken a cautious approach to cryptocurrencies, prioritizing strong consumer protections due to risks for retail investors. They have voiced concerns about the environmental impact of proof-of-work mining’s carbon footprint and have proposed legislation requiring transparency around energy use. Democrats also support strengthening AML/KYC requirements for exchanges and regulating stablecoins to ensure proper oversight. Some show interest in researching a U.S. CBDC and modernizing finance through digital dollars while maintaining government oversight. Additionally, Democrats have aimed to clarify and enhance cryptocurrency tax reporting to ensure fair share of payments. While advocating these regulatory and consumer safeguard positions, signs of evolving perspectives recognize blockchain technology’s potential benefits, such as financial inclusion and innovation. The party has placed emphasis on consumer safeguards, the environment, and oversight for illicit activity prevention and taxes, but some see opportunities in financial technological advancement.
One special non-politician
Not all political speakers were politicians. Privacy advocate Edward Snowden warned of Bitcoin’s privacy vulnerabilities in light of advancing AI and emerging regulatory pressures, explaining that while Bitcoin is often thought of as anonymous, transactions can actually be traced back to individuals, and regulated exchanges can reveal extensive transaction histories, compromising personal privacy by potentially exposing sensitive personal information and revealing insights into users’ life histories including habits, purchases and political affiliations.
He called out politicians using the event as a platform for their political ambitions in a thinly-veiled statement, “Cast a vote, but don’t join a cult… they are not our tribe. They are not your personality. They have their own interests, their own values, their own things they’re chasing. Try to get what you need from them, but don’t give yourself to them, even if you have to vote for them.” In a word: DYOR.
This all takes place in the context of an eventful history of regulatory and judicial action regarding the industry. Over the past six months, significant regulatory developments and landmark court cases have shaped the legal landscape for cryptocurrencies in the US, including the pivotal SEC v. Ripple ruling distinguishing securities from commodities, approval of the first spot Bitcoin ETFs after years of rejections, passage of a comprehensive stablecoin regulation bill, the CFTC receiving expanded authority over spot markets, a precedent-setting settlement between the SEC and crypto exchange Kraken, FinCEN beginning strict enforcement of the travel rule for crypto transactions, proposals for regulatory frameworks concerning DeFi and environmental regulations requiring disclosure of mining’s energy use, as well as ongoing crackdowns prosecuting insider trading — collectively these events have set precedents that will heavily influence future crypto regulation in the US.
Takeaways
Republicans (and RFK) generally aligned on the need for a strategic Bitcoin reserve and a cessation of any government selling of the asset. Their contempt for SEC Chain Gensler is on clear display, certainly instilling some fear and trepidation given their blatant threats: the end of his tenure is all but certain if Trump or RFK win in November. While Senator Blackburn touched on the need for sensible regulation and incentives, others in her party remained silent or alluded simply to a hands-off approach based on individual freedom. This could suggest her taking the lead on Republican led proposals for crypto policy, making her statements and platform the one to watch in the event of a red-tide. Democrats’ positions on the other hand are less of a sure thing, as the party remains divided despite apparent persuasion by many elected members of the party following Khanna’s, Nickel’s and other’s vocal support. The 14-person letter may be their playbook in the event of a Harris victory.
But no matter what, it’s clear that crypto is on the political agenda, and it’s there to stay. Policymakers have taken notes and taken stances, and that will be an enduring legacy. One more step towards complete and total acceptance. One thing RFK may be right about for sure: Bitcoin is inevitable.
About Zulu Network
Zulu Network is a new class of Bitcoin Layer 2 to move the Bitcoin economy forward, empowering the Bitcoin ecosystem through exciting innovations. Zulu is the first Bitcoin Layer 2 to achieve Bitcoin-level security using BitVM2, enabling developers to seamlessly deploy dApps on both EVM & UTXO layers.
Zulu is a recognized key contributor to BitVM, poised to launch the first trust-minimized Bitcoin bridge. Join their 755k+ users and start earning and shaping the future on Bitcoin with Zulu.
