The Scoop: Anti-crypto bias may have cost Democrats the election

This column was co-written by Frank Chaparro, director of special projects at The Block, and Laura Vidiella of MNNC Group. The views expressed in this column are their own and do not reflect the opinions of their employers.

Bitcoin has broken all-time highs following President-elect Donald Trump’s decisive victory, a surge many expected. Trump has pledged to be the first pro-crypto president, with a new SEC regime likely to roll back the regulatory crackdown that targeted legitimate players like Coinbase and Kraken, neglected critical issues underlying the FTX collapse, and painted the entire crypto industry as irrelevant to American capital markets.

This anti-crypto stance isn’t isolated to the SEC but pervades much of the Democratic Party. It’s no surprise that this bias may have influenced Trump’s victory over Harris, as a growing base of single-issue crypto voters have become frustrated by Democrats’ general opposition to the industry.

Many Democrats, viewing crypto as the domain of “fraudsters and bros,” have alienated a significant segment of voters by resisting engagement with the industry. Not all within the party share this perspective, though: we saw internal divisions emerge in August when pro-crypto Democrats lobbied the campaign to soften its stance, only to be overridden by figures like Elizabeth Warren and Sherrod Brown (who ultimately lost his campaign).

The Democrats now face a period of introspection. As they assess why their economic messages are not resonating and explore ways to reconnect with key demographics, they may have to reckon with the fact that millions of voters — estimated at around 5% — are single-issue crypto voters. As Paradigm’s Justin Slaughter recently noted on The Scoop, allowing voices like Gensler and Warren to dominate the party’s stance on crypto has come at a high cost.

In a close election, alienating even a small voter base can tip the scales. Democrats would do well to take the industry more seriously — a miscalculation that cost them dearly this cycle.

The Block’s Frank Chaparro serves up the latest headlines, charts, trends, and views on crypto and DeFi from around The Block, Twitter, and The Scoop pod. Subscribe to The Scoop newsletter, which hits inboxes on Tuesday and Friday mornings.