When President Biden announced a plan to initiate new regulations on cryptocurrency, many did not expect crypto executives to turn around and lobby for Democrats' support. But that is exactly what has happened, per The Washington Post.

From supporting pro-crypto candidates to fundraising for Senate Majority Leader Chuck Schumer, D-N.Y., crypto executives are becoming increasingly politically active, with an eye on the midterms.  

Elementary school teacher Arika Rhodes is one of the Democrats that the crypto industry is watching. Running for Congress against incumbent Rep. Brad Sherman, D-Calif., Rhodes has made headlines in the crypto community for her embrace of Bitcoin.

Crypto ‘Currency’

“If it wasn’t for Bitcoin, a grassroots campaign like ours wouldn’t have made it this far,” Rhodes has said. “It [Bitcoin] has made us viable in our effort to unseat a 20+ year incumbent.” Rhodes said.

Progressive supporters of cryptocurrency are also seen in the House of Representatives, where Rep. Ritchie Torres, D-N.Y., has argued crypto can help create opportunity in his impoverished district.

However, Sherman called for crypto to be banned in 2019, and Sen. Elizabeth Warren, D- Mass., who has repeatedly supported tough regulations against the cryptocurrencies, just as she has the entire financial services industry.

Likewise, Senate Majority Leader Chuck Schumer (D, N.Y.) has supported regulations on crypto in the past, but that has not stopped crypto execs from wooing the powerful Senator. Over a Zoom call in mid March, executives from Coinbase, the largest American crypto exchange, privately held a fundraiser for the Congressman.

Schumer has remained less outspoken than Rhodes or Warren on the subject but encouraged executives to connect with the Biden Administration as President Biden considers new regulations, The Post reports.

In response, crypto executives have donated to the Web3 Forward super PAC, an organization backing pro-crypto Democrats, and have spent over $2 million to support Jasmine Crockett, a Texas Democrat running for Congress, per Politico.   

Dan Matuszewski, co-founder of the crypto investment group CMS Holdings, tells The Washington Post, “There are a lot of Democratic candidates who are pro-crypto that we want to foster in their trajectory.” For starters, Matuszewski says crypto enthusiasts are just thankful when a politician does not put cryptocurrencies down.

Donating to candidates in cryptocurrency has emerged as a trend as well, with chairman of the Senate Finance Committee Ron Wyden accepting almost $30,000 in Ethereum, the second most popular coin, in campaign contributions last December.

Meanwhile on Capitol Hill, the work continues to influence Democrats both skeptical and optimistic about the technology. “There’s been a lot of progress over the past year, and this is no longer a situation where the only champions out there are Republicans,” executive director of the Blockchain Association Kristin Smith tells The New York Post.

New York Senate Republican candidate Joe Pinion tells Newsmax Finance he believes it is hypocritical for crypto executives to fundraise for Schumer, since New York has burdensome regulations on the industry. “You have someone like Chuck Schumer, who sits at the fulcrum point of these conversations, and he is making it harder for people to do crypto business,” Pinion says. “How is it that we have not addressed this with the fierce urgency it deserves?

“New York Mayor Eric Adams wants the city to be more welcoming to the crypto community, but the state legislators make it harder for business to occur in the crypto space,” Pinion continues, noting the significant amount of power elected Democrats hold across New York State and New York City.

‘Crypto Freedom’

Another candidate for office, Tim Baxter, a Republican running for Congress in the 1^st District of New Hampshire, says he is encouraged by cryptocurrency becoming more of a bipartisan issue, even if it takes time.

“It is good that people who care about ‘crypto freedom’ are trying to make it a bipartisan issue, because I think that increases the likelihood for better laws to allow for crypto freedom are passed,” Baxter says. “I, for one, as a small government conservative, am skeptical that you’ll see socialists get on board with crypto. It is why you see Warren say bitcoin works best for the rich, but in reality, it works better for the poor. It is a good thing that crypto executives are reaching out and educating Democratic lawmakers and, hopefully, some of them come on board.”