Ex-Coinbase CTO Explains Why Democrats Are Against Crypto
Crypto is now a partisan issue in the United States, and there’s a clear reason as to why, according to a former Coinbase executive.
Author and entrepreneur Balaji Srinivasan argued this weekend that digital assets appeal to “American conservatives” and “Chinese Liberals” – demographics that generally aren’t represented by the Democratic party.
Crypto Versus Rich Democrats
In a tweet this Sunday, Balaji said that crypto is for “small countries and dispossessed minorities,” providing a new form of power to those who lack the influence of the state.
“Democrats and Communists control powerful states, so they don’t benefit from crypto,” Balaji wrote. “But everyone else does.”
The entrepreneur highlighted how employees of the nation’s top employers – including Microsoft, Amazon, Google, and the U.S. government – primarily donated to the Democrats over Republicans.
What’s more, the richest counties across the United States producing most of the nation’s GDP are blue counties, suggesting that Democrats have the most money.
“Crypto is to the right of American Democrats and the left of Chinese Communists,” Balaji added. He provided a diagram depicting the current governments of both China and Russia as “culturally right” with the current US establishment as “culturally left.”
Both factions have proven deeply hostile to the crypto industry. On one hand, governments of both Eastern superpowers have banned crypto as a means of payment for citizens, claiming such assets would cause economic instability.
Meanwhile, the Biden administration is renowned for standing against pro-crypto legislation at almost every opportunity. Last week, the White House promised to veto a Republican-led resolution to axe SEC guidance preventing banks from offering crypto custody services.
Accepting Crypto’s Partisan Nature
Balaji’s post was a response to Castle Island Ventures partner Nic Carter, who wrote a tweet on Sunday dismissing notions that crypto was not inherently political.
“To the extent leftism relies on the politicization of finance, crypto will be a rightist technology, definitionally,” he said. “It is delusional to meekly intone that crypto is nonpartisan and hope for the best.”
That’s not to say left-minded Dems can’t see any appeal in crypto, however. Carter pointed out how letting banks custody crypto could bring the industry into the regulated fold, and how stablecoins could boost demand for US government debt.
Unlike the Democrats, former President Donald Trump has reversed course on his former anti-crypto stance, embracing the industry ahead of his election rematch with Biden later this year.
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