Key Takeaways
- The crypto industry surges as institutional investment, ETFs, and legislative support grow.
- Vitalik Buterin warned the crypto community against unquestioningly supporting politicians based on pro-crypto stances.
- Buterin stressed the international nature of crypto and the need for politicians to support immigration and global collaboration to foster the industry’s growth.
In his latest blog post , Ethereum creator Vitalik Buterin urged the crypto community to be cautious about supporting politicians solely based on their pro-crypto stance.
Buterin’s comments come at a time when the crypto industry is becoming increasingly relevant in global politics, marked by its growing institutional adoption and influence on national elections and economic policies.
Just this year, the US political landscape has actively engaged with the crypto industry, even passing pro-crypto bills like FIT21, signaling a growing recognition of crypto as a critical, nonpartisan issue that commands attention from voters, investors, and lawmakers alike.
Buterin Warns Against Crypto Political Bias
Buterin critiqued the increasing pressure within the cryptocurrency community to engage politically, primarily supporting parties and candidates based on their willingness to adopt lenient and favorable positions towards “crypto.”
The Ethereum founder pointed at ‘pro-crypto’ initiatives such as the Markets in Crypto Assets regulation (MiCA) in the EU, efforts to regulate stablecoins in the UK, and a complex blend of legislative moves and regulation-by-enforcement tactics from the SEC in the United States.
He expressed concerns over the crypto space becoming overly political, particularly in reaction to regulatory pressures in the EU and US. He noted the growing tendency to back candidates who adopt lenient views on crypto, warning that such actions could betray the core principles that originally drew people to cryptocurrency.
Buterin emphasized the importance of understanding politicians’ deeper motivations and historical policy positions before offering support, advising the community to ensure that these politicians support broader, constructive goals, not just partisan success.
He wrote :
“If a politician is in favor of your freedom to trade coins, but they have said nothing about the topics above, then the underlying thought process that causes them to support the freedom to trade coins is very different from mine (and possibly yours). This in turn implies a high risk that they will likely have different conclusions from you on issues that you will care about in the future.”
Politicians Ignoring Crypto Industry’s Global Status?
Vitalik Buterin has emphasized the importance of internationalism within the cryptocurrency industry, highlighting its global nature.
He pointed out that internationalism is a significant oversight in statist egalitarian politics, which often implements restrictive economic policies under the guise of “protecting workers” domestically. However, these policies largely ignore that two-thirds of global inequality exists between countries rather than within them.
Buterin also stressed how restrictive visa policies have already affected participation in industry events and underscored the need for greater focus on such issues.
He mentioned the transformative potential of widespread internet access in fostering a more equitable and globalized digital society. Buterin highlighted how cryptocurrency, by extending these ideals into the realm of financial transactions, could play a crucial role in leveling the economic playing field globally. He also noted that he has witnessed numerous instances where cryptocurrency has made significant strides toward this goal.
Buterin also asserted that if his support for cryptocurrency stems from its benefits for internationalism, it is also essential to evaluate politicians’ attention to global concerns. Without naming specific individuals, he observed that many politicians fall short of demonstrating a genuine commitment to the broader international community, a crucial factor in his assessment of their suitability.
He concluded :
“If a politician is pro-crypto, the key question to ask is: are they in it for the right reasons? Do they have a vision of how technology and politics and the economy should go in the 21st century that aligns with yours? Do they have a good positive vision, that goes beyond near-term concerns like “smash the bad other tribe”? If they do, then great: you should support them, and make clear that that’s why you are supporting them. If not, then either stay out entirely, or find better forces to align with.”
Overly Restrictive Crypto Regulation Harms Decentralization
Buterin also critiqued the current state of cryptocurrency regulation, pointing out that it often hampers the acceleration and decentralization essential to the industry’s growth, inadvertently centralizing power instead.
He discussed how these trends of acceleration and divergence are playing out globally, particularly referencing Russia’s approach to cryptocurrency. Buterin also argued that while Russia appears to support crypto to circumvent international sanctions, it simultaneously restricts its use domestically, reflecting a broader trend of using crypto policies for power consolidation rather than genuine support for the technology.
Buterin further connected these observations to the broader behavior of politicians who may initially promote pro-crypto policies. He cautioned that such politicians might pursue power for themselves or align with other power-seekers, leading to policies that ultimately concentrate rather than distribute power. The Ethereum Founder highlighted the importance of scrutinizing the long-term implications of their policies to understand their true impact on the crypto sector.
He concluded :
“If a politician is pro-crypto, the key question to ask is: are they in it for the right reasons? Do they have a vision of how technology and, politics, and the economy should go in the 21st century that aligns with yours? Do they have a good positive vision that goes beyond near-term concerns like “smash the bad other tribe”? If they do, then great: you should support them and make clear that that’s why you are supporting them. If not, then either stay out entirely or find better forces to align with.”
Crypto Policies Crucial in the 2024 U.S. Presidential Election
Unlike Ethereum’s Vitalik Buterin, billionaire Mark Cuban believes cryptocurrency policies will be a pivotal issue in this year’s US presidential election. Cuban has repeatedly warned that President Joe Biden’s stance on crypto, influenced by SEC Chair Gary Gensler, could jeopardize his re-election efforts. Highlighting the significance of crypto among younger and independent voters, Cuban emphasized, “Crypto voters will be heard this election.”
https://twitter.com/mcuban/status/1799614027792081213
Adding to the discourse, Cardano founder Charles Hoskinson has challenged Buterin’s views on politics and crypto, advocating for the crypto community to act as a single-issue voting bloc to support pro-crypto candidates.
Hoskinson argues that politicians will reconsider their positions if they realize that opposing crypto could lead to electoral defeat, urging a strategic vote to protect the industry and promote favorable regulations.
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