Crypto needs to get Democrats on board to advance US policy

Crypto industry members and lobbyists need to remember who they are talking to when trying to appeal to Democrats, lobbyist says

article-image

diy13/Shutterstock modified by Blockworks

share

As legal battles heat up and crypto enforcement shows no signs of slowing, industry members and lobbyists are ramping up efforts to appeal to lawmakers, particularly Democrats. 

John Rizzo, senior vice president for public affairs at Clyde Group, told Blockworks “the leading progressives,” including Sen. Elizabeth Warren, “now hold a position on crypto that is indistinguishable from some of the largest banking lobbies in the country.”

“It has become partisan, and it’s dangerous for the industry, because if you’re a partisan issue, the livelihood…of your industry is subject to the whims of an election,” Rizzo said. 

Party lines have deepened this session as lawmakers struggle to get on the same page. 

“We really don’t believe blockchain is a partisan issue,” Perianne Boring, founder and CEO of the Chamber of Digital Commerce, said. “We just think politics have gotten in the way of smart legislation.” 

Democrats have been reluctant to support the Digital Asset Market Structure Bill, a draft penned by Republican chairs Patrick McHenry and Glenn Thompson, of the House Financial Services and Agriculture Committees, respectively. 

Even with support from key committees, Republicans need Democrats to get on board if the bill is to have a realistic chance of advancing. 

“There’s skepticism right now on both sides of the aisle, especially in this post-FTX world of crypto,” Kristin Smith, CEO of the Blockchain Association, said. “[There is] probably more skepticism on the Democratic side than the Republican side, but it’s not universal, and I think that if there is a divide, it tends to be more along age lines than party lines.” 

During a House hearing in June to discuss the draft, Democrats were opposed. Financial Services Committee Ranking Member Maxine Waters, D-Cali., said the legislation had too many loopholes for crypto companies, likening it to a “get out of jail free” card. 

Rep. Brad Sherman, D-Cali., argued during the hearing that the bill would only make it easier for bad actors like now-indicted Sam Bankman-Fried to get away with their crimes. 

Democrats generally do not appear to be moving off script, though, making the bill’s lobbyists and supporters jobs that much harder. 

“The drafters of the bill really want this to be a bipartisan effort, and they are working really hard to do this in a bipartisan process,” Boring said. “But I think they’ve run into a lot of challenges because the Democratic Party has really just taken this political stance of being kind of anti-crypto.” 

When speaking with lawmakers and trying to get crypto policy through, the strategy is to remember who you’re talking to, Boring added. 

“Republicans usually love anything about economic growth, or creating jobs, building the economy, that resonates with them very well,” she said. “On the Democratic side…it’s anything social; financial inclusion, anything about protecting and empowering the retail investor and consumer, those are things that resonate.” 

The narrative that Republicans are pro-crypto and Democrats are anti-crypto is relatively new, Boring said. Historically, the parties have been able to find common ground, she added, pointing to the bipartisan Congressional Blockchain Caucus. 

The Caucus was founded in 2016 by Democrat and current Colorado Governor Jared Polis and former Republican representative and Trump staffer Mick Mulvaney. The goal is to investigate the potential benefits of crypto technology.

“Protecting investors and providing clarity for innovators is not a partisan issue,” Brett Quick, head of government affairs at the Crypto Council for Innovation, said. “Lawmakers on both sides of the aisle recognize the potential for blockchain technology to revolutionize many of our legacy systems.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

tg trading bot report graphic.png

Research

Telegram trading bots have found their primary niche in highly speculative token launches and retail-dominated memecoin markets, with many features specifically tailored to token sniping and copy-trading strategies.

article-image

Ethereum is hoping that increased DA will grow user demand — and its profits through DA fees

article-image

11 years ago, Bitcoin contributors prevented a supply crisis… two centuries from now

article-image

Both samczsun and ZachXBT have issued warnings after the Bybit hack last month

article-image

The investor criticized Michael Saylor’s plan to render his personal bitcoin holdings inaccessible to anyone else forever

article-image

The exchange has structural defenses and protocols to limit manipulations

article-image

Upshift is being spun out of August, which raised $10 million earlier this month