Ethereum's creator, Vitalik Buterin, called for crypto advocates to think beyond the pro-crypto campaign slogans peddled by politicians, voicing strong concerns about aligning politics and the crypto-friendliness nature of a politician.
In other words, he warns against deciding political views solely based on a politician's stance toward "crypto".
The Core Values That Inspired the Crypto Movement
In a thought-provoking blog post titled "Against choosing your political allegiances based on who is 'pro-crypto,'" Ethereum co-founder Vitalik Buterin presents a compelling argument for users to view cryptocurrency as more than just a financial and technological phenomenon.
He cautions against prioritising crypto-friendliness in political decisions, warning that it may erode the core values that originally inspired the crypto movement.
Buterin addresses the increasing trend among members of the crypto community to become more politically active, particularly in response to regulatory concerns in the European Union (EU) and United States (US).
He notes the pressure to support politicians and parties based on their willingness to adopt lenient and favourable positions toward crypto.
However, he warns that such support could ultimately compromise the fundamental principles that initially attracted individuals to the crypto space.
Buterin acknowledges that some legislative measures, such as the EU’s Markets in Crypto Assets (MiCA) regulation and the UK's efforts to regulate stablecoins, are reasonable.
Yet, he expresses concern about the possibility of governments taking more extreme measures, like classifying most cryptocurrencies as securities or banning self-hosted wallets.
In his blog, Buterin asserts that:
“Crypto enthusiasts should not determine their political allegiances solely based on a politician's crypto-friendly stance."
He stresses that basing decisions solely on a politician's stance on crypto risks conflicting with the very values that drew people to the cryptocurrency space.
Crypto is Beyond Financial Freedom
Buterin emphasizes the significance of the broader techno-libertarian ideals that ignited the crypto movement, transcending mere financial freedom.
He highlights the cypherpunk movement, which laid the groundwork for modern cryptocurrency, focusing on free and open technology to bolster individual freedoms.
This movement was not confined to financial liberty but also encompassed the fight against restrictive copyright laws and the promotion of decentralisation.
Buterin recalls:
“The initial spirit of the cypherpunk movement was to promote decentralization and freedom in various spheres, not just financial.”
He stresses that while financial freedom is essential, it is only one facet of a larger battle for technological and personal liberties.
Buterin underscores the importance of decentralisation among crypto pioneers, such as Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
He recalls Nakamoto's response to sceptics of cryptography's ability to address political issues as a rare and formative statement that shaped crypto's core values.
Satoshi wrote of peer-to-peer networks:
“We can win a major battle in the arms race and gain a new territory of freedom. Governments are good at cutting off the heads of centrally controlled networks like Napster, but pure [peer-to-peer] networks like Gnutella and Tor seem to be holding their own.”
Moreover, Buterin points out that politicians can easily garner support by permitting the trading of their tokens, but he urges consideration of other technological freedoms, including privacy of communication, privacy-friendly digital identities, and access to unbiased information.
He argues that these freedoms are as fundamental as financial freedom and must be safeguarded in tandem with crypto interests.
Concurrently, Buterin warns against uncritically backing politicians who claim to be pro-crypto without scrutinising their broader values and policies.
He cautions that supporting a politician based solely on their crypto stance could lead to unforeseen consequences if their overall values do not harmonise with the principles of the crypto community.
Internationalism is a Key Issue for the Crypto Industry
Buterin emphasized internationalism, or cross-border access and involvement, as a crucial issue for the crypto industry.
He criticised many politicians for their lack of concern for global matters and insufficient support for immigration.
Highlighting how visa access difficulties have already affected attendance at industry events, Buterin called for more focus on this issue.
According to Buterin:
“The crypto industry is uniquely international, and so immigration law is crypto law. Which politicians, and which countries, recognize this?”
He cautioned that endorsing politicians solely for their pro-crypto stance could lead to neglect of their broader positions on critical matters.
He wrote:
“If they are a power-seeking narcissist, or if they push for bills that make it even harder for your Chinese or Indian friend to attend the next crypto conference — all that politicians have to do is make sure it’s easy for you to trade coins.”
Current Regulations More Harmful Than Helpful
Buterin argued that current regulations often stifle both innovation and decentralisation in the crypto industry, hindering development while centralising power.
He noted that these trends could eventually diverge.
Using Russia as an example, Buterin highlighted the country’s strategic use of crypto to circumvent external restrictions, despite its opposition to individual crypto usage domestically.
He cautioned that politicians with short-term pro-crypto stances might either be power-seeking or overly accommodating to those who are.
This approach, he warned, could ultimately lead to further concentration of power in the industry.
Through the Looking Glass at Politicians' Record on Their Crypto Stance
Buterin underscored the importance of examining a politician's historical stance on crypto when considering their support.
Without naming specific politicians, Buterin suggested that a politician's past views on crypto can serve as a useful indicator of their future positions.
He also noted that a politician's behaviour when their support for freedom conflicts with their support for corporations can be revealing.
He pointed out that being pro-crypto today does not guarantee the same stance in the future and encouraged readers to monitor shifts in positions regarding the support of freedoms versus corporations.
He wrote:
“This can be a good guide on what kinds of changes to their views might happen five years in the future.”
These observations are particularly prescient, given the recent dramatic shifts in stance by both Biden and Trump.
Biden has evolved from a staunch opponent to an overall acceptance of cryptocurrency, while Trump has explicitly embraced the crypto space.
Indeed, the former president, who once dismissed Bitcoin as "seeming like a scam" in 2021, has now begun accepting crypto donations and is set to be a keynote speaker at the upcoming Bitcoin conference in Nashville, Tennessee.
Using Authoritarians' Approach on Crypto
Buterin delved deeper, illuminating the foundational principles that undergird much of the crypto industry.
Born in Russia, Buterin has occasionally blogged about the global state of crypto regulation and the political ideologies surrounding the technology, drawing from his experiences with authoritarian regimes.
Holding Montenegrin citizenship since 2022, while reportedly maintaining Canadian and Russian passports, Buterin employs Russia as a case study to demonstrate how pro-crypto policies can be manipulated to serve government interests while curtailing individual liberties.
He cautioned that certain governments with authoritarian tendencies adopt a "rules for thee, not for me" stance on crypto, supporting the technology to circumvent economic sanctions but opposing it when it complicates surveillance of citizens and adversaries.
Consequently, Buterin advises the community to stay alert and avoid endorsing politicians who might exploit crypto advocacy to advance authoritarian objectives.
Buterin posed a critical question: when a politician is pro-crypto, individuals should reflect on whether the politician's motives are genuine and whether their long-term aims extend beyond mere opposition to a perceived enemy.
He welcomed genuine support but underscored the necessity of clearly articulating the reasons behind such support.
Presidential Candidates Lining Up to Tout Their Pro-Crypto Stance Prior to Elections
While the Ethereum co-founder did not directly reference the 2024 US Elections, his post coincided with lawmakers convening at the Republican National Convention to nominate Donald Trump as the party's presidential candidate.
Trump, who once dismissed Bitcoin as a "scam" in 2021, has since pivoted to support BTC miners and accept crypto donations, a move seen by many political analysts as a strategy to court pro-crypto voters in anticipation of a closely contested election against the potential Democratic candidate, US President Joe Biden.
Buterin's commentary arrives as US political candidates adjust their positions on crypto in the lead-up to the November elections.
The presumptive next US president, Donald Trump, has been vocal in his pro-crypto stance on the campaign trail, but he is not alone.
Across the political spectrum, Biden has also softened his stance on cryptocurrencies, and his administration has shown signs of embracing the industry.
The global trend of governments grappling with the permanence of crypto as a technology, industry, and set of values is evident.
Notably, Buterin's remarks come at a time when a pro-crypto sentiment is on the rise in the context of the upcoming US Presidential Election in 2024.
A significant number of crypto market enthusiasts are throwing their support behind Donald Trump due to his recent endorsement of the crypto market, highlighting the growing influence of crypto in the upcoming US presidential election, as evidenced by substantial contributions to pro-crypto political efforts.
Buterin's Blog Post Largely Criticisms
Buterin's perspective is especially noteworthy, as it contrasts with the majority of industry leaders who have expressed support for pro-crypto political candidates.
For example, Charles Hoskinson, another Ethereum co-founder and the founder of Cardano (ADA), encouraged the community to vote for crypto in the upcoming November election.
Buterin's blog post sparked a variety of responses from prominent figures in the crypto industry.
It was met with disapproval from some of the industry's more conservative voices, particularly Messari CEO Ryan Selkis, a vocal supporter of former President Donald Trump.
Selkis, who co-founded the crypto market intelligence firm Messari in 2017, has become a political influencer within the crypto sector.
He has led efforts to fund a crypto-friendly political action committee and has been critical of the Securities and Exchange Commission (SEC) on social media for what is perceived as a regulatory assault on crypto.
Selkis has described the upcoming November election, featuring President Joe Biden and Trump, as an existential moment for crypto.
He has based his political allegiances on who he believes is mentally competent to be commander-in-chief.
After Buterin's blog post, Selkis speculated that Buterin would not debate him, implying that it would expose Buterin's limited understanding of practical politics.
However, Selkis pondered whether Buterin could eventually present himself as a worthy debate opponent.
Jake Chervinsky, chief legal officer at venture capital firm Variant Fund, acknowledged on X that Buterin's post raised valid points, though he noted that some readers might infer conclusions not explicitly stated by Buterin.
Peter Van Valkenburgh, director of research at Coin Center, a non-profit focused on crypto policy, suggested an alternative headline for Buterin's post.
Nic Carter, a partner at Castle Island Ventures, argued that crypto aligns with his libertarian/conservative values and that it is logical for Republicans to embrace it.
He also noted that Trump has surrounded himself with politicians who are authentically pro-crypto, such as his vice presidential pick Sen. J.D. Vance (R-OH) and the one-time presidential candidate Vivek Ramaswamy.
Ki Young Ju, CEO of the on-chain analytic platform CryptoQuant, questioned the pragmatism of Buterin's stance, arguing that political reality often compels support for pro-crypto candidates.
Coinbase, a major US-based crypto exchange, has become a significant player in political donations through its Fairshake PAC, reflecting the industry's growing financial influence on elections.
On the contrary, Linda Xie, co-founder of Bountycaster, a bounty service for the decentralised social media network Farcaster, expressed gratitude for Buterin's post on X.
She has previously stated that she is not a single-issue voter on crypto and will not support someone solely because they are pro-crypto.
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