Analyst explains how Democrats can regain crypto support following Biden exit

Jake Chervinsky, the chief legal officer of Variant Fund, said President Joe Biden’s withdrawal from the November presidential race could allow the Democrats to capture some crypto votes. In a July 21 thread on X (formerly Twitter), Chervinsky described the withdrawal as an opportunity for a reset.

Also Read: “Now what?” – Crypto community reacts to Biden ditching Trump in presidential race

His comments come in light of the strong support that former President Donald Trump has enjoyed from the crypto community. Trump, who has adopted a pro-crypto stance, has positioned himself as the ideal alternative to Biden, whom many in the industry believe is anti-crypto and stifling the sector’s growth with his policies.

How can Democrats recapture crypto votes?

Chervinsky explained that whoever is nominated by the Democrats must seize the chance to rewrite the party’s crypto approach. This is because crypto will play a crucial role in the election, particularly in the swing states where a recent poll shows that 1 in 5 registered voters see crypto as a major issue.

“A new Democratic nominee can flip the script and win back a meaningful number of crypto voters. To be sure, a good portion were Republicans from the start, and after years of Biden, many more are lost to the Democrats for good.” – Jake Chervinsky

According to the crypto executive, the Democratic presidential nominee must reassure crypto supporters that it is safe to support the party. He recommended how the party can do this through a five-pronged approach. These include recognizing the crypto industry’s and blockchain technology’s importance to the US economic and political strength and acknowledging the shortcomings of the SEC’s enforcement-based approach to regulation.

Additionally, the Democratic candidate should define their crypto policy to demonstrate that they will promote crypto innovation while ensuring consumer protection. He also recommended that they engage with stakeholders in the industry and consider publishing the list of potential appointees to the Securities and Exchange Commission and the Commodities Futures Trading Commission.

Also Read: Crypto community speculates on Biden replacements with new memecoins

However, Chervinsky acknowledged that the new democrat nominee must seize the opportunity and work hard to stand a chance. The crypto executive admitted that the four years Biden has done a lot of damage to the party within the crypto community, but he disagrees that the Republican Party is the only option.

The crypto community might vote out Democrats for revenge

Chervinsky’s post has already generated several reactions from the crypto community, with many criticizing him for suggesting that crypto voters should support the Democrats. Many described it as impossible, with some equating it to voting SEC chair Gary Gensler for US president.

Crypto attorney Gabriel Shapiro best captured the voice of dissent. According to him, it is unlikely that crypto will endorse or vote for a party that has been persecuting the industry for the last four years.

I think we need to punish the Dems, esp. if their ticket includes Kamala who was VP during this entire disastrous 4 years and who was just endorsed by the head of the "anti-crypto army" They need to do something extraordinary to win back the trust of crypto–maybe in 4 years

— _gabrielShapir0 (@lex_node) July 22, 2024

He added that the chances of that happening are even lower if current vice president Kamala Harris emerges as the presidential nominee.

According to Polymarket data, Harris currently stands the best chance of being picked as the nominee. President Biden and staunch anti-crypto senator Elizabeth Warren have already endorsed her.