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Ethereum co-creator Vitalik Buterin has issued a warning against choosing political candidates solely based on their pro-crypto stance. In a blog post on Wednesday, Buterin highlighted the complexities of political dynamics, noting that even Russian President Vladimir Putin has shown openness to cryptocurrency.
Buterin’s caution comes as Donald Trump, positioning himself as a pro-crypto presidential candidate, rallies the Republican National Convention in Milwaukee. This follows a significant announcement from venture capitalists Marc Andreessen and Ben Horowitz of Andreessen Horowitz (a16z), who revealed plans to donate substantial sums to political action committees supporting Trump.
In an episode of “The Ben & Marc Show,” Horowitz criticized the Biden administration for what he described as nefarious tactics by the SEC and FDIC, which he claimed have targeted over 30 of their companies. “They’re losing almost all these lawsuits, but the problem is that when you’re a startup you don’t have the money to fight the U.S. government and so they’re kind of nuking the industry in that way,” Horowitz stated.
Fairshake, a super PAC backed by top crypto companies, has emerged as one of the top-spending PACs this election cycle, with 94% of its $160 million contributions coming from Ripple, Andreessen Horowitz, Coinbase, and Jump Crypto.
Buterin pointed out that a “crypto-friendly” stance can be characteristic of authoritarian governments, citing modern Russia as an example. He emphasized the risks of supporting candidates based purely on their crypto stance, creating an incentive where politicians may exploit this support without genuine commitment to broader democratic values.
Prominent figures in the tech and crypto industries, such as Elon Musk, Peter Thiel, and the Winklevoss twins, have also endorsed Trump. A recent Trump fundraiser in San Francisco, attended by technologists and crypto executives, raised over $12 million.
Trump has actively courted the crypto community, accepting digital currency donations and pledging to defend the rights of self-custody coin holders. At the Libertarian National Convention in Washington, Trump vowed to keep Sen. Elizabeth Warren and her allies away from bitcoin holders and, following a meeting with bitcoin mining executives at Mar-a-Lago, declared that future bitcoin would be minted in the U.S. if he returns to the White House.
On Monday, Trump announced Ohio Senator JD Vance as his vice-presidential running mate. Vance, known for advocating looser crypto regulations, is seen as a win for the crypto sector. This contrasts with the Biden administration, which has been perceived as tough on crypto, with increased SEC enforcement actions against the industry.
The perception of Biden as anti-crypto and Trump as pro-crypto has led to concerns among Biden allies, who are seeking to address this directly with senior White House officials. Trump is scheduled to headline the Bitcoin 2024 conference in Nashville, Tennessee, on July 27.