A major debate has erupted between two of the most influential figures in the cryptocurrency world, Vitalik Buterin, co-founder of Ethereum, and Charles Hoskinson, founder of Cardano. The clash centers around their differing views on the involvement of pro-crypto politics in the upcoming elections.
On Wednesday, Buterin released an essay titled “Against choosing your political allegiances based on who is ‘pro-crypto’”, where he expressed his concerns about the increasing politicization of crypto. This comes at a time when former President Donald Trump, a leading candidate in the next presidential election, has embraced a pro-crypto stance, receiving endorsements and contributions from major industry players like Jesse Powell (co-founder of Kraken) and the Winklevoss twins (founders of Gemini).
Pro-Crypto Politics: Buterin’s Argument On Political Allegiances And Crypto
In his essay published on July 17, Buterin warned against the simplistic approach of supporting political candidates solely based on their crypto policies. He stressed that politics is complex and involves more than just one issue, cautioning against relying too heavily on pro-crypto politics as the sole criterion for candidate support.
“The game of politics is much more complicated than just ‘who wins the next election’, and there are a lot of levers that your words and actions affect,” Buterin wrote. He cautioned that prioritizing cryptocurrency policy above all else might lead the community to promote a political culture where mere pro-crypto rhetoric is enough to garner support, ignoring other critical policy areas.
Buterin suggested that such a narrow focus could lead politicians to believe that supporting crypto alone can secure electoral success, potentially neglecting significant issues like privacy rights, governance ethics, and international cooperation.
He criticized the idea of using crypto support as a litmus test for political backing. “By publicly giving the impression that you support ‘pro-crypto’ candidates just because they are ‘pro-crypto’, you are helping to create an incentive gradient where politicians come to understand that all they need to get your support is to support ‘crypto’,” Buterin argued.
He challenged the community to adopt a more holistic approach to political engagement. “If a politician is pro-crypto, the key question to ask is: are they in it for the right reasons? Do they have a vision of how technology, politics, and the economy should go in the 21st century that aligns with yours?”
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Pro-Crypto Politics: Cardano Founder Hoskinson Responds
Reacting swiftly, Charles Hoskinson, founder of Cardano, presented a strong counter-argument. He emphasized the urgency of political support for crypto-friendly policies, especially given the adversarial regulatory environment and the need for pro-crypto politics.
Hoskinson took to social media to voice his views. “My first goal has always been to keep government out of crypto completely. In the places where that’s not possible, the choice is pretty clear,” he posted. Hoskinson argued that in situations where government intervention is unavoidable, supporting pro-crypto politicians is crucial to protecting the industry from unfavourable regulations.
“Politics is a game of cause and effect. If politicians understand that bullying and harassing our industry translates to lost elections, then suddenly, they avoid doing that. It’s not complex nor should invent massive cognitive hierarchies to excuse one’s personal distaste of particular people,” Hoskinson wrote.
He expressed strong opposition to policies that threaten the operational integrity and freedom of the crypto industry, listing several adversarial actions like the potential development of Central Bank Digital Currencies (CBDCs), lawsuits against non-custodial wallets, and the systematic criminalization of crypto leaders, emphasizing the need for robust pro-crypto politics to counter these threats.
“If they want a CBDC, sue non-custodial wallets, systematically jail the leaders of Crypto, call everyone a security, and bully and harass exchanges, then we don’t vote for them,” Hoskinson emphasized.
Pro-Crypto Politics: The Political Battle Heats Up
Hoskinson directly contrasted Trump’s and Biden’s attitudes towards crypto. He claimed, “A vote for Biden is a vote for the death of the American crypto industry.” He pointed to Trump’s readiness to commute Ross Ulbricht’s sentence and his general pro-crypto rhetoric as reasons for his endorsement.
“Biden will leave him in prison for life. There are very real policy differences between Biden, who wants to destroy our industry, and Trump/Kennedy, who are embracing it, […] These statements are based upon their actual behaviour in court, policy, and vetoes – not personal preference,” Hoskinson stated.
He concluded with a powerful message to the crypto community: “We’ve all endured terrible things this crypto winter. I’ve watched friends like Roger and CZ geprot arrested. Good businesses are demonized and sued. It has to stop, and it won’t if there aren’t political consequences. So in 2024, #VoteCrypto.”
The BIT Journal reports that the debate between these two crypto giants underscores the growing tension within the industry regarding political strategies and alliances, particularly the impact of pro-crypto politics. As the 2024 election approaches, the cryptocurrency community will be watching closely to see how these differing views influence the political landscape.
