Why US Crypto Giants Are Betting Big on Democrats in 2025

Crypto''s political playbook gets a blue makeover as industry heavyweights pivot left. Here''s why the smart money''s shifting—and what it means for your portfolio.

The Regulatory Tug-of-War

Democrats are crafting crypto rules with a velvet glove where Republicans swing hammers. Startups can''t afford another ''move fast and break things'' era—not with SEC fines now reaching phone-number digits.

Tax Breaks That Actually Break Even

Biden''s 2024 digital asset framework quietly slipped in R&D credits that make mining operations blush. Meanwhile, GOP tax plans still treat crypto like your weird cousin''s Beanie Baby collection.

The ESG End-Run

Proof-of-stake chains found their unlikely champion in climate-conscious Dems. Funny how ''energy efficiency'' suddenly matters when it saves VCs from carbon-tax headaches.

Wall Street''s already placing bets—because nothing unites capitalists like favorable regulation. Just don''t call it lobbying when the checks clear.

The Need for Bipartisan Support is Critical

Crypto regulation is a hot topic in the US, especially as President TRUMP has made it a cornerstone of his agenda. Before the 2024 election, Kamala Harris showed tepid support for the industry, but Trump was clearly the crypto candidate.

Still, several reports claim that the crypto industry is strengthening its ties with the Democrats.

Coinbase, for example, named Obama aide and Harris’ Senior Advisor David Plouffe to its global advisory council last week, even though the firm backed Trump in the election.

Needless to say, the crypto community and political figures were significantly upset over this appointment.

.@coinbase just hired David Plouffe @davidplouffe to work with Chris Lehane.

Just goes to show you that Coinbase has no interest in actually working with conservatives but instead they want to hire and work with the most radical Democrats and Trump haters.

David Plouffe was… pic.twitter.com/TrVtj9XgkP

Ripple, which also supports the President’s agenda, registered a new lobbyist: Lilette Advisors, which was founded by President Biden’s former staffers. What can explain this?

From the crypto industry’s perspective, supporting the Democrats is a useful way to hedge its bets. If Trump’s actions make the pro-crypto project politically unpopular, the industry could lose out on long-term gains.

“In the long run, Democrats are likely to take power back in at least one of these Chambers or the Presidency. So, if you made this industry explicitly partisan, you have a problem,” claimed Austin Campbell, an adjunct professor at New York University’s Stern School of Business and the head of the stablecoin company WSPN USA.

What about the reverse? Why does the party want rapprochement with the industry?

The struggle to pass stablecoin regulation is a useful window into the Democrats’ growing friendliness to crypto.

After the GENIUS Act failed a major vote, several pro-crypto Dems worked to build its bipartisan appeal, an initiative that proved successful.

Still, even then, Democrats have to deal with progressive members’ intense criticism of the crypto industry. This can create a few complications and liabilities, which the GENIUS debate also highlights.

For example, even though Senator Kirsten Gillibrand is a crypto advocate, her recent speech supporting the GENIUS Act lamented Trump’s industry connections.

Ultimately, crypto companies are counting on massive political donations to win Democrats’ support, especially in the 2026 midterms.

Although the industry spent more on Republicans, pro-crypto Dems won several critical seats. As a leaked Signal chat shows, Democratic insiders and strategists are eager to support the industry to secure future funding:

“If Democrats bail on this [the GENIUS Act], they will get 0 dollars going forward. It WOULD be political suicide for them not to support it,” Avichal Garg, a managing partner at the VC firm Electric Capital, told this chat. The Lever reported that several influential strategists agreed with this assessment.

In short, Democrats have a lot of incentive to take money from crypto, and the relationship is mutual. The industry needs to survive a potentially risky election, and the party wants to maximize its revenue streams to win it.

This strategy does not guarantee success, especially with potential cracks in the coalition. Nonetheless, both actors want the other’s help.