Although the Republican Party under President Trump is spearheading US crypto adoption, many firms are actively courting the Democrats. This bipartisan approach aims to cement long-term gains in the event of political changes.
Both the industry and the Democratic Party have reasons to reach out to the other. However, progressive opposition to Trump’s crypto scandals could create cracks in this coalition.
The Need for Bipartisan Support is Critical
Crypto regulation is a hot topic in the US, especially as President Trump has made it a cornerstone of his agenda. Before the 2024 election, Kamala Harris showed tepid support for the industry, but Trump was clearly the crypto candidate.
Still, several reports claim that the crypto industry is strengthening its ties with the Democrats.
Coinbase, for example, named Obama aide and Harris’ Senior Advisor David Plouffe to its global advisory council last week, even though the firm backed Trump in the election.
Needless to say, the crypto community and political figures were significantly upset over this appointment.
Ripple, which also supports the President’s agenda, registered a new lobbyist: Lilette Advisors, which was founded by President Biden’s former staffers. What can explain this?
From the crypto industry’s perspective, supporting the Democrats is a useful way to hedge its bets. If Trump’s actions make the pro-crypto project politically unpopular, the industry could lose out on long-term gains.
“In the long run, Democrats are likely to take power back in at least one of these Chambers or the Presidency. So, if you made this industry explicitly partisan, you have a problem,” claimed Austin Campbell, an adjunct professor at New York University’s Stern School of Business and the head of the stablecoin company WSPN USA.
What about the reverse? Why does the party want rapprochement with the industry?
The struggle to pass stablecoin regulation is a useful window into the Democrats’ growing friendliness to crypto.
After the GENIUS Act failed a major vote, several pro-crypto Dems worked to build its bipartisan appeal, an initiative that proved successful.
Still, even then, Democrats have to deal with progressive members’ intense criticism of the crypto industry. This can create a few complications and liabilities, which the GENIUS debate also highlights.
For example, even though Senator Kirsten Gillibrand is a crypto advocate, her recent speech supporting the GENIUS Act lamented Trump’s industry connections.
Ultimately, crypto companies are counting on massive political donations to win Democrats’ support, especially in the 2026 midterms.
Although the industry spent more on Republicans, pro-crypto Dems won several critical seats. As a leaked Signal chat shows, Democratic insiders and strategists are eager to support the industry to secure future funding:
“If Democrats bail on this [the GENIUS Act], they will get 0 dollars going forward. It would be political suicide for them not to support it,” Avichal Garg, a managing partner at the VC firm Electric Capital, told this chat. The Lever reported that several influential strategists agreed with this assessment.
In short, Democrats have a lot of incentive to take money from crypto, and the relationship is mutual. The industry needs to survive a potentially risky election, and the party wants to maximize its revenue streams to win it.
This strategy does not guarantee success, especially with potential cracks in the coalition. Nonetheless, both actors want the other’s help.