Former Coinbase CTO Explains Why Democrats Are Against Crypto

Crypto is now a partisan issue in the United States, and there’s a clear reason 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,” a demographic generally underrepresented by the Democratic party.

Crypto vs. 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 without the influence of the state.

“Democrats and communists control powerful states, so they don’t benefit from cryptography,” Balaji wrote. “But everyone else does.”

The businessman highlighted how employees of the nation’s top employers – including Microsoft, Amazon, Google and the US government – donated primarily to Democrats over Republicans.

Also, the wealthiest counties in the U.S. that produce most of the nation’s GDP are blue counties, suggesting that Democrats have more money.

“Crypto is to the right of the American Democrats and to the left of the Chinese Communists,” Balaji added. He provided a diagram depicting the current governments of China and Russia as “culturally correct” and the current American establishment as “culturally left.”

Both factions have proven to be deeply hostile to the crypto industry. On the one hand, the governments of both Eastern superpowers have banned crypto as a means of payment for citizens, claiming that such assets would cause economic instability.

Meanwhile, the Biden administration is known for opposing pro-crypto legislation at almost every opportunity. Last week, the White House vowed to veto a Republican-led resolution to remove SEC guidance barring banks from offering crypto custody services.

Accepting the partisan nature of Crypto

Balaji’s post was a response to Castle Island Ventures partner Nic Carter, who wrote a tweet on Sunday dismissing ideas that crypto was not inherently political.

“To the extent that the left relies on the politicization of finance, crypto will definitely be a right-wing technology,” he said. “It’s wishful thinking to meekly intone that crypto is non-partisan and hopes for the best.”

That doesn’t mean, however, that leftist Dems can’t see any appeal in crypto. Carter pointed out how letting banks hold custody of crypto could bring the industry into the regulated pen, and how stablecoins could increase demand for US government debt.

Unlike Democrats, former President Donald Trump has reversed course from his former anti-crypto stance, embracing the industry ahead of his election rematch with Biden later this year.

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