Crypto-aligned political action committees (PACs) and donors flooded over $14 million into the fiercely contested 2022 midterm elections. This is a huge signal of success for the growing political clout of the crypto space. While some politicians are wary of crypto, others are embracing it, with figures like former US President Donald Trump calling for America to become "the crypto capital of the planet." The industry is making efforts to address environmental concerns and promote innovative governance models, aiming to broaden its appeal across the political spectrum.
Crypto's Environmental Push
One of the biggest attacks to be hurled at cryptocurrencies—especially Bitcoin—has been their energy usage. Other cryptocurrencies, like Solana, provide a more long-term, sustainable option. Solana currently uses a small percentage of Bitcoin’s energy, and on average, each Solana transaction uses less energy than a pair of Google searches. This new commitment to energy efficiency may be just what the industry needs to win over eco-friendly politicians and voters and clean up crypto’s reputation.
The industry is eager to promote these green replacement products to fight bad PR and show the industry is serious about sustainability. By highlighting these developments, the cryptocurrency industry hopes to gain wider acceptance and ease fears about its environmental footprint.
Legislative and Governance Innovations
For instance, Wyoming took a pioneering step in the United States when it passed legislation to allow for recognition of decentralized autonomous organization (DAOs). This legislation is a big step toward creating a robust legal framework for DAOs. These organizations run on rules written as computer code, allowing greater creativity, flexibility and innovation and attracting crypto-related businesses to the state.
Projects like Gitcoin have funneled more than $50 million through the digital public goods. This funding goes to the teams building open-source software and other key resources that strengthen the crypto ecosystem. DisCO is deeply invested in researching inclusive, collaborative models of governance and shared accountability. They are providing different ways to organize themselves that match with progressive values.
Meanwhile, US Senator Cynthia Lummis, who has been very active on crypto legislation, has a goal of getting two comprehensive crypto bills passed by 2026. These legislative initiatives are intended to offer clarity of regulation to the industry and encourage innovation in a responsible way.
Bridging the Political Divide
Unquestionably, interest in crypto is skyrocketing. A political fault line runs through these waters, with the technology’s early adopters mostly found on the right. Historically, unions resisted tech adoption in the early web era, highlighting a potential challenge in gaining support from labor-aligned politicians.
The crypto industry is making a tremendous push for bipartisan support. They’re tackling the future of energy consumption, championing new models of governance and civic tech, and advancing digital public goods. The broader crypto community is dedicated to making our industry more sustainable and socially responsible. Their goal is to transcend the partisan divide and build a more equitable, inclusive, and collaborative space.
