How Crypto Is Flexing Its New Political Power

A senior adviser to Kamala Harris’ 2024 presidential campaign has joined Coinbase’s global advisory council, expanding the cryptocurrency exchange’s bipartisan political connections. The new member joins a council that already includes several former U.S. senators and a former campaign manager for Donald Trump, underscoring how the industry has become a significant force in Washington.

David Plouffe, the Democratic strategist best known for helping architect Barack Obama’s 2008 presidential campaign, is the latest high-profile addition. His role comes as lawmakers accelerate efforts to craft a comprehensive regulatory framework for digital assets and as crypto policy emerges as a fast-moving priority on Capitol Hill.

That both Democrats and Republicans are engaging with the crypto sector reflects its growing political importance. Parties view crypto holders as a rising bloc of potential swing voters, and industry leaders are investing heavily in influence and policy advocacy. The result is a new degree of political prominence for crypto firms, with advisers from across the political spectrum meeting with companies to discuss regulation and strategy.

The crypto industry spent millions on the 2024 election

Crypto interests were major political spenders during the 2024 cycle. A super political action committee focused on cryptocurrency contributed more than $130 million to congressional races, and Coinbase was one of the largest donors backing those efforts.

Those investments are already influencing policy. Congress is moving faster than usual to develop rules for cryptocurrencies, driven in part by the industry’s lobbying and its growing importance to voters. The change in Washington has coincided with promises from Republican leadership to foster a more welcoming environment for digital assets. President Trump has pledged to make the U.S. a global hub for crypto, contrasting with what many in the industry described as a more restrictive approach under the previous administration.

One policy shift that could significantly boost the market is the potential easing of rules on retirement accounts. The Department of Labor under the current administration has rolled back guidance that discouraged including crypto in 401(k)s and IRAs, reopening the possibility that Americans could hold digital assets in retirement funds—an outcome that could channel substantial capital into the sector if even a small portion of roughly $44 trillion in retirement assets flows into crypto products.

Trump’s backing of the crypto industry

Members of the Trump family have also engaged directly with the crypto ecosystem, pursuing efforts such as raising funds for bitcoin purchases, developing a stablecoin concept, and promoting a Trump-branded meme coin. At Coinbase’s policy conference in New York, Trump addressed attendees by video, accepting the label some supporters used of him as the “first crypto president” and congratulating the industry on its moment of growth.

Coinbase added Chris LaCivita, a former co-campaign manager for Trump’s 2024 election effort, to its advisory council in January. LaCivita and Plouffe both spoke at Coinbase’s New York event about how campaigns courted crypto investors during the election, describing that group as a potentially decisive and growing constituency.

LaCivita said the Trump campaign quickly came to embrace crypto after initial skepticism, in part due to conversations with family members and close advisers. He also noted the political opportunity: engaging voters who may not have been traditional participants in partisan politics, including younger and Black voters, offered potential electoral upside.

“It gave us an opportunity to establish common ground with an area and a demographic that we need to expand in order to be successful,” LaCivita said, calling the outreach “one of those great growth opportunities in politics.”

The growing crypto voter base

Plouffe echoed that assessment, describing crypto holders as a largely competitive group of voters who tend to lean younger and are not reliably aligned with either major party. “The folks who own crypto are pretty politically competitive,” he said. “These are not MAGA voters. They are swing voters.”

Both advisers expressed optimism about their parties’ prospects in upcoming elections. Plouffe noted the typical advantage enjoyed by the party out of power in midterm cycles while acknowledging Democrats need to improve their standing and messaging to regain momentum.

Plouffe previously served on the global advisory board for another major exchange, Binance, and now joins Coinbase’s council alongside figures such as former Arizona Senator Kyrsten Sinema. Faryar Shirzad, Coinbase’s chief policy officer, described the council as a sounding board that helps the company shape policy thinking and business strategy.

Congress is taking action on regulating stablecoins

Legislation to regulate stablecoins and broader crypto market structure is advancing through Congress at an accelerated pace. Lawmakers from both parties have begun to coalesce around bills addressing stablecoins—digital tokens typically pegged to the U.S. dollar—and a more comprehensive market-structure bill has started moving through House committees.

Observers say the speed of these developments reflects both intense industry lobbying and a bipartisan desire to provide clarity and consumer protections while supporting innovation. A stablecoin measure has gained cross-party support in the Senate and could see final action soon, while additional proposals aim to define regulatory roles and trading rules for the broader crypto market.

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