Republicans under President Trump are at the forefront of US code adoptions, but many companies are actively courting Democrats. This bipartisan approach aims to solidify long-term benefits in the event of political change.
There’s a reason why both the industry and the Democrats are reaching out to the other. But progressive opposition to Trump’s crypto scandal could create a crack in this coalition.
The need for bipartisan support is important
Cryptocurrency is a hot topic in the United States, especially as President Trump has become the cornerstone of his agenda. Before the 2024 election, Kamala Harris showed lukewarm support for the industry, but Trump was clearly a code candidate.
Still, some reports argue that the crypto industry is strengthening its ties with Democrats.
Coinbase, for example, was named Obama Aide and Harris Senior Advisor David Proof, and appeared on the Global Advisory Council last week despite the company’s support of Trump in the election.
Needless to say, the crypto community and politicians were significantly upset by the appointment.
Ripple, which supports the president’s agenda, has registered its new lobbyist, Lilette Advisors. It was founded by former staff members of President Biden. Can you explain this?
From a crypto industry perspective, supporting the Democrats is a useful way to hedge that bet. If Trump’s actions are not politically popular, the industry could lose its long-term profits.
“In the long term, Democrats are likely to take power in at least one of these rooms or in the presidency. So if you explicitly partisan the industry, you’re in trouble,” argued Austin Campbell, an associate professor at New York University’s Stern School of Schools and head of the stubcoin company WSPN USA.
What about the other way around? Why does the party want to reconcile with the industry?
The struggle to pass Stablecoin regulations is a useful window into Democrats’ familiarity with Crypto.
After the act of genius failed the big vote, several custody groups Dems worked to build a bipartisan appeal, an initiative that proved successful.
And yet, Democrats have to deal with the fierce criticism of the crypto industry of their progressive members. This can result in some complications and debt. This also highlights the argument of geniuses.
For example, Sen. Kirsten Gillibrand is a code advocate, but his recent speech in favor of genius bemoaned Trump’s industry connections.
Ultimately, crypto companies are relying on massive political donations to win Democratic support, particularly in the mid-term 2026.
The industry spent more on Republicans, but the pro-cryptic Dems won several important seats. As leaked signal chat shows, Democratic insiders and strategists are keen to help the industry secure future funding.
“If Democrats are bailed out by this (genius law), they’ll get $0 in the future. It’s political suicide for them to not support it,” Avichal Garg, managing partner at VC Firm Electric Capital, told the chat. Lever reported that several influential strategists agreed to the assessment.
In short, Democrats have many incentives to take money from the code, and the relationships are mutual. The industry needs to withstand potentially dangerous elections, and the party wants to maximize its revenue stream to win it.
This strategy does not guarantee success, particularly with potential rifts in the coalition. Nevertheless, both actors are seeking the help of the other person.
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