Bitwise CIO: Political Stance on Cryptocurrency Is Irrelevant

Upon returning from the Bitcoin 2024 conference, Bitwise’s Chief Investment Officer Matt Hougan concluded that the crypto industry is “not optimistic enough.” 

Several recent promises made by American politicians at the event prompted him to “rethink the possibilities” of Bitcoin.

Hougan highlighted several key points from the conference: 

• Presidential candidate Donald Trump announced plans to create a national Bitcoin reserve and expressed his desire to make the US the “crypto capital of the world”; 
• Senator Cynthia Lummis introduced a bill proposing the government purchase 1 million BTC;
• Representative Ro Khanna (Democrat from California) stated the need to “reject the hostile policies of the past” and embrace the first cryptocurrency as a “key part of the country’s financial future”;
• Independent candidate Robert Kennedy Jr. urged the US Treasury to acquire 4 million BTC. According to Bitwise’s CIO, this “sounded crazy” until he explained: the US currently holds 19% of the world’s gold reserves, and the proposed amount of Bitcoin would represent a similar share;
• Senator Roy Haggerty (Republican from Tennessee) declared that a love for the first cryptocurrency is “in his DNA,” equating the asset to freedom and independence, while his colleague Marsha Blackburn “drove trucks around the conference zone,” promoting support for digital gold;
• Vice President Kamala Harris did not attend the conference but “felt enough political pressure” to reveal plans for a Democratic “reset” for crypto companies.

“It’s madness. Less than two years ago, FTX collapsed in a historic fraud, Bitcoin was trading at $17,000, and skeptics were dancing on the grave of the crypto industry. Now politicians are openly talking about building a ‘Bitcoin Fort Knox,'” Hougan marveled. 

He believes it is easy to view Washington’s acceptance of cryptocurrency as “shameless opportunism.” However, digital assets are a significant political force: over 80 million Americans own cryptocurrency, and the industry has “one of the largest” political action super committees in the US.  

“Most politicians don’t actually like Bitcoin; they just bow to its growing popularity. But I’m not sure it matters. When you say ‘opportunism,’ I say: ‘That’s how politics works.’ Politicians embrace cryptocurrency because Americans embrace cryptocurrency,” added the top executive.

Nevertheless, according to Hougan, “the fact remains” that the government’s attitude towards the industry has significantly changed. He noted that there are now “equal risks” for both market growth and decline. 

Support for Crypto Candidates

Lightspark CEO David Marcus expressed support for the Republican administration and Trump ahead of the upcoming US elections.

I am crossing the Rubicon and backing the Republican Party and President Trump.

Many — including a former version of myself — get trapped in a mental framework that becomes their identity and prevents them from radically evolving their thinking with new facts and information. I…

— David Marcus (@davidmarcus) July 31, 2024

He stated that over several years he made a “gradual 180-degree political turn”:

“At the time, I still believed in the conventional idea that Democrats should serve the people. However, I was shocked to learn that Republicans care more about their constituents, while Democrats, in my experience, are more concerned with state power and control.” 

Active support for crypto candidates is also provided by MicroStrategy founder Michael Saylor, who also spoke at Bitcoin 2024. He recently published a quote from Senator Bill Hagerty, urging to “clarify” the situation with digital assets in the US. 

“We need to make certain that it happens here in America.” — @SenatorHagerty on #Bitcoinpic.twitter.com/HEIEro4V6S

— Michael Saylor⚡️ (@saylor) July 30, 2024

Previously, the author of the bestseller “Rich Dad, Poor Dad” and entrepreneur Robert Kiyosaki expressed a positive attitude towards the former president. According to the businessman, if he wins, the first cryptocurrency will rise to $105,000. 

In July, Bloomberg journalists reported that Bitcoin miners and crypto companies, which were hindered from going public in the US, would benefit from a second Trump presidency.