Regardless of who wins in the presidential election, or in any of the congressional races, it's become very clear. Crypto wins regardless.
Daily, hosted by me, Jenn Sanassi. On this show, we navigate the currents shaping the crypto markets, providing insights against the broader financial landscape. So, whether you're actively trading or simply fascinated by the volatility that is the crypto markets, this show is your compass to understanding all of that: where we were, where we are, and where we are going. Good day, everyone. It is election day in the United States. Bitcoin broke above 70,000 this morning, but dipped just below at time of recording. Crypto has played a major part in the narrative leading up to the election, which some are saying could be the closest U.S. election in modern history. Many are pondering today, could crypto voters decide the outcome? Joining the show is Coinbase Chief Legal Officer Paul Grewal to weigh in. Welcome.
Thank you, Jen. Good to see you.
Good to see you too. Now, we're talking all about the election and I just want to start here. Are there any fears you have about the outcome of the upcoming election as it relates to crypto? How are you feeling? What are you thinking about today as Americans go to the polls?
I don't have any fears at all, and I'm actually feeling quite good about this election, even though a lot remains to be seen over the next 24 hours and perhaps beyond. And the reason, Jen, is that regardless of who wins in the presidential election, or in any of the congressional races, it's become very clear. Crypto wins regardless. And I say that because 52 million Americans now own digital assets. And in this campaign and in this election season, 1.8 million Americans have signed up as crypto advocates at Stand with Crypto, and more than 500,000, nearly 600,000, have actually taken steps to register to vote crypto candidates through their particular engagement with Stand with Crypto. So we're seeing the crypto voter emerge as an important voice in the conversation, and Democrats and Republicans alike have come to understand that if they want to continue to serve in office, if they want to continue to meet their voters and constituents' needs, they need to be thinking about how they can provide legislation and regulation that provides certainty and stability for crypto. And we're very excited about that.
You're not the first person who's come on this show and said that crypto's already won the election. You brought up a stat there, 52 million Americans own crypto. This is something that's come up again and again in the narrative leading up to the election and even the broader narrative when we talk about the crypto ecosystem. Just for our audience, talk to me about where that number comes from.
Well, there has been a whole lot of polling in crypto, just as there's been a whole lot of polling regarding the candidates in the election. Morning Consult has developed this particular figure as part of their survey and research into who owns digital assets. But if you look at other sources, for example, the Federal Reserve of Philadelphia has done important work in this area, and other third parties. The numbers are clear: tens of millions of Americans, whether it's 50 million, 60 million, 40 million, it's clear tens of millions of Americans have owned digital assets, and they all want to see crypto in their financial future and in the broader economic future. And that's why we think the crypto voter is so important to the results that we're going to see after today and in the months and years ahead.
Well, Paul, that leads me to my next question. Could crypto voters really impact this election? I know that's a question you've been asked from other outlets, but it's election day. Talk to me about the crypto voter. Are they really going to have an impact? Are there really single issue voters out there?
Well, it's absolutely clear that if you consider that the 1.8 million Americans have signed up as crypto advocates, that crypto is on the minds of many American voters. And while not all of them may view crypto as their sole issue, it's clear that it is one important issue as they weigh which candidate to vote for in any particular race. I think what's critically important is that in several battleground states, states which could be decided by a few thousand votes going to one candidate or another, there are tens of thousands of people who have signed up as one of these crypto advocates and made it very clear that they will be considering the candidates' views on market structure legislation, legislation concerning stablecoins, the way that the SEC has gone about regulating this market by enforcement rather than by rulemaking. All of that tells us that crypto will play an important part in the outcome of these various races. And that even if no single person is only focused on crypto in each and every race, collectively, we're going to see crypto emerge as an important consideration for these results.
Talk to me about the key races that you're watching.
Well, obviously everyone is focused on the presidential race and for good reason. Our new president will have a significant impact on the state of crypto, whether it's appointments to chair the Securities Exchange Commission, the Commodity Futures Trading Commission, and other important federal agencies, whether it's signing legislation that will ultimately make its way through the House, and more generally setting the tone for crypto and making it clear that crypto will be welcome in the United States. I think the presidential race is certainly at the top of the list for good reason, but we shouldn't ignore that important races are taking place all over the country for the House, for the Senate. And the reason why those races matter is that the party which will control the House and the Senate will be determined as a result of each of these individual races. And so it's important to pay attention for that reason. And whichever party controls, for example, the House or the Senate will also have a say in who serves as the chair of the House Financial Services Committee, the Senate Banking Committee. These are important institutions within the Congress that are going to have an outsized role in setting crypto policy in the years ahead.
Let's talk about the presidential race. The first one you brought up for good reason. I know that Coinbase has met with folks from both the Trump and Harris camp. Can you give us some insight into the conversations that were had? And let's start with the Trump camp.
President Trump, I think it's no exaggeration, has bear hugged crypto in a way that very few of us could have imagined even six months ago, let alone a year ago. The former president has made it very clear that he sees crypto as an important national security issue for the United States. He sees tremendous economic opportunity in the development of crypto products and services here in the US. And he personally has taken a great interest in crypto by virtue of his personal involvement in crypto projects and his insistence that pro-crypto stances be included in the Republican National Convention platform, for example. For her part, Vice President Harris I think has been more measured in how she has approached crypto. She has been very clear that she sees crypto as a part of a pro-innovation agenda and has made several statements that recognize that protecting the innovation of crypto is just as important as protecting investors and protecting consumers who may be involved in these markets. And so in their own way, with their own style, each of the candidates, I think, has recognized that again, the 52 million Americans who own digital assets are expecting them to take the responsibility of protecting these markets seriously and to support legislation which will bring clarity to these markets. How they go about that, which personnel they will put in these important appointed positions remains to be seen. But we're optimistic that regardless of who wins, as I said earlier, crypto is going to win either way.
You know, some folks who have come on this show have questioned the authenticity of some of the comments that have come out about crypto from the Trump camp, having been involved with discussions with folks who are thinking about what crypto policy could look like under a Trump presidency. Did those discussions have substance? Did they feel real? Did they feel like more than just lip service?
Well, I've had the privilege of speaking with the former president on several occasions about crypto policy, and I am absolutely certain that crypto is going to receive fair consideration if former President Trump is returned to office. If you stood in the crowd at the Bitcoin conference in Nashville, if you heard the president speak directly of the need to protect self-custody, it's very clear that he and his campaign and his advisors understand that we need a reset in crypto from the last three and a half years. That said, I'm just as confident that we're going to get a fair consideration by Vice President Harris. Again, her language has been much more measured, but she's only had, I think it's fair to say, a very limited period of time within which to develop economic policies on a whole range of issues. And so it's quite natural that her embrace of crypto would be more limited. Either way, I think it's clear that the approach of the current administration and the approach led by SEC Chair Gensler will be rejected. This notion that somehow lawsuits are the way to bring certainty and clarity to the market clearly has not worked, and the courts have pushed back on that. And the markets themselves, I think, have made it clear that rulemaking legislation is the long-term durable solution to providing certainty and clarity, not lawsuits.
Yeah, let's talk about the SEC. I mean, many are wondering how the results of the election will impact the SEC. Talk us through each scenario. We talked about, we started with Trump last time. So let's start with Harris. I keep referencing other people who have come on the show, but you know, a lot of people think that if Harris does take the presidency, we will see some change in the SEC, but maybe not as quickly as if Trump were to take the seat. What do you think? What's your stance there?
