Do Democrats Really Hate Crypto? Rep. Ro Khanna
Bringing Crypto into the Democratic Fold: A Conversation with Rep. Ro Khanna
In a recent episode of the Bankless podcast, we had the privilege of speaking with Representative Ro Khanna, a Congressman from California and a prominent voice advocating for the crypto industry within the Democratic Party. As the political landscape around crypto regulation continues to evolve, Rep. Khanna has emerged as a key figure brokering meetings between the White House, the Kamala Harris campaign, and major crypto players in an effort to carve out a path for crypto in the Democratic Party’s platform.
Why Crypto is Absent from Democratic Platforms
One of the more perplexing trends we discussed with Rep. Khanna was the absence of crypto in major Democratic platforms. Whether it was the first presidential debate between Kamala Harris and Donald Trump or the DNC’s official policy documents, there’s been little to no mention of crypto. Despite the growing relevance of digital assets in the global economy, Democrats have been largely silent on the topic.
We asked Rep. Khanna directly: Why isn’t crypto a bigger part of the Democratic platform?
He acknowledged that there’s been a noticeable gap and mentioned that although crypto advocates within the party are growing in number, they haven’t yet had enough influence to shape official policy documents like the DNC’s. However, he expressed hope that with ongoing meetings and discussions between the White House and key crypto figures, we could see a shift in how the Democratic Party engages with the industry.
Brokering High-Level Meetings
Rep. Khanna shared insight into some of these meetings, which have included major figures from the crypto world like Mark Cuban, along with key decision-makers within the Biden administration and the Kamala Harris campaign. According to Khanna, the goal of these conversations is to lay the groundwork for a more comprehensive approach to crypto regulation—one that’s not only reasonable but also fosters innovation and growth within the U.S.
“I’m hopeful that as a consequence of these meetings, the Administration will issue a positive statement in the coming weeks with a roadmap signaling the path toward reasonable regulation,” Khanna said during the interview.
What’s on the Table for Democrats?
While the Democratic Party might not have officially embraced crypto, Khanna believes there’s room to win them over. He outlined a tiered approach to how different aspects of the crypto industry could be handled under a Kamala Harris presidency, should she win in 2024:
- Easier Issues: Stablecoins and centralized exchanges are areas where he sees common ground, with Democrats likely to push for clear rules on these fronts.
- Moderate Challenges: Decentralized finance (DeFi) presents more complexities but remains within the realm of possibility if reasonable safeguards are proposed.
- Toughest Battles: Privacy coins and privacy-focused protocols, which are likely to encounter the strongest resistance due to concerns over financial transparency and regulation.
Khanna suggested that a Harris presidency could potentially offer a more favorable environment for crypto than the current Biden administration, though much would depend on the advisors she brings on board and the extent to which she listens to pro-crypto voices.
Why Aren’t More Democrats Pro-Crypto?
One of the burning questions we posed was: Why haven’t more Democrats embraced crypto, especially given its potential to win votes and financial support? Khanna explained that much of the resistance stems from a lack of understanding and a perception that crypto could undermine traditional financial systems. Figures like Elizabeth Warren and Gary Gensler, both outspoken critics of crypto, have had considerable influence in shaping Democratic attitudes.
Still, Khanna assured us that there are more pro-crypto Democrats than it seems, including some unexpected names like Chuck Schumer and Nancy Pelosi, who have reportedly become more open to pro-crypto legislation in recent months. However, these figures haven’t yet mobilized enough support to shift the broader party consensus.
Convincing the Undecideds
For Khanna, the key to winning more Democrats over to the crypto side lies in education and demonstrating how crypto aligns with broader Democratic values, such as financial inclusion and empowering individuals. He encouraged the crypto community to continue engaging with policymakers and to focus on building bridges with undecided members of Congress.
The Road Ahead
As we wrapped up our conversation, we asked Rep. Khanna for his final thoughts on how the crypto community can continue to influence policy under a potential Kamala Harris presidency. His advice was clear: the community needs to keep pushing for a seat at the table, engaging in dialogue with policymakers, and advocating for clear, reasonable regulations that foster innovation while addressing legitimate concerns.
There’s no question that the crypto world will be watching closely as the 2024 presidential race heats up. As Khanna works behind the scenes to bring crypto into the Democratic fold, it will be fascinating to see whether the party seizes the opportunity to embrace digital assets—and, with it, a new generation of voters and innovators.