United States of Crypto: States Across the Union Call for Crypto Legislation in the US

As more of our day to day is digitized, it's becoming clear that our aging financial system is in need of an update. Crypto and blockchain technology represent that update. Unfortunately, full-scale development and adoption of this new technology face several headwinds. A lack of regulatory clarity in the US stunts new innovation and products, and discourages consumer adoption. A continued approach to regulation by enforcement, most recently in the form of the SEC’s lawsuit against Coinbase, undermines congressional efforts to develop a fair and clear regulatory framework for crypto through the legislative process. Clear rules will enable continued innovation while protecting consumers in the US. While several countries around the globe move forward with strategies to become “crypto hubs,” the US is at risk of falling behind, with implications for economic and financial leadership, national security, and local jobs and growth.

Fortunately, new research conducted by Impact Research on behalf of Coinbase, confirms that there is a growing constituency of Americans who want to make their voices heard and are calling for clear rules that enable crypto to improve our financial system for everyone.  Despite headwinds, a consistent 1 in 5 Americans (or ~22%) own digital assets according to Morning Consult, and the latest data from Impact Research shows sentiment toward crypto and blockchain in key states like Georgia, Montana, New Hampshire, Nevada, and Ohio is overwhelmingly positive. The data indicates that these technologies are not just shaping the financial landscape, but are driving the priorities of a large voting bloc in critical states, suggesting a rising need for crypto-friendly legislation and the importance of the crypto constituency.

State Data Shows Demand for Crypto-Friendly Policies 

Americans have made clear that it's time to update our financial system. Past polling showed that 80% of Americans think the financial system unfairly favors powerful interests, 67% agree it needs a major update, and 76% of crypto owners believe crypto and blockchain are the future. New state-based data again shows that crypto owners believe that the technology is the future of finance. In Georgia, a substantial 73% of crypto owners polled believe that cryptocurrency and blockchain technology is an essential economic tool for the future of finance, and 72% agree that policymakers should support innovative technologies that are reshaping the world today. 73% of crypto owners polled in Montana and 70% in Nevada believe crypto and blockchain can increase economic opportunities for Americans in a way that traditional finance cannot. Taken together, the data suggests that adopting crypto-friendly legislation could be instrumental in supporting economic growth and innovation in the US.

The data also highlights the perceived role of cryptocurrency and blockchain technology in job creation. 66% of respondents in Georgia and 65% in Nevada believe that blockchain technology will create the jobs of the future. 64% of Georgia and Nevada crypto owners polled also believe cryptocurrency and blockchain represents the future of finance. According to a recent study by Electric Capital, crypto and blockchain will create an estimated 1 million new open source software engineering jobs globally by 2030. Unfortunately, the report also highlights that the US has been steadily losing market share of these jobs to foreign competitors. Jobs of the future are on the line and voters in critical states like Georgia and Nevada are sure to pay attention to proposals to reverse this troubling trend. 

Looking at the broader political landscape, we can see the development of a growing voting bloc focused on crypto and blockchain-related issues. In the 2022 midterm elections, crypto voters backed 19 pro-crypto and pro-innovation candidates to seats in the Senate and House of Representatives. Crypto owners polled across key states favor candidates who support crypto-friendly policies. In New Hampshire, for instance, about 44% of crypto owners say they would actively seek information on a candidate's stance on crypto, and 31% would vote for a pro-crypto candidate. 30% reported they would actively oppose a candidate supporting anti-crypto policies and regulation. In Montana, another 35% of crypto owners say they would seek out information on where candidates stand on crypto and 33% would vote for a candidate because they are pro-crypto. 

The crypto constituency cuts across the political spectrum. According to Morning Consult data, in 2020, 61% of crypto owners voted for President Biden, and in all, 31% of 18-34 year old voters, 27% of registered Democrats, and 23% of registered Republicans said candidates’ views on Web3 would impact their 2022 vote. As we saw happen in 2022, and as we can see in our state-based data, a young, diverse voting bloc of crypto owners is shaping up to make their voices heard in the next election cycle.

Despite the growing interest from voters in pro-crypto policies, a majority of respondents in our poll say there’s still significant uncertainty around regulation from political leaders. In New Hampshire, 60% of crypto owners say that current regulations are unclear and 53% think that there is not much or no current regulation of the crypto industry at all. Similarly, one in two Ohio crypto owners are of the view that current regulations are limited or do not exist. 

Overall, our research suggests that approximately 56% of US adults agree that there is a lack of standalone regulation for the crypto industry, while 60% feel that any regulation that does exist is unclear. This underscores the urgent need and national interest in clearer, more defined crypto policies that will foster growth and innovation. We’re pleased that bipartisan proposals have been introduced or announced in both the House and the Senate. Adopting such legislation will help secure a future where innovation thrives, the economy grows, and the nation remains globally competitive. The outcome of the 2024 elections will shape crypto legislation, and crypto voters are prepared to play a major role. 

The state and national data suggests that US leaders should pay more attention to the growing importance of crypto. Embracing cryptocurrency and blockchain technology isn't just about staying ahead in the digital age, it's also about economic growth, innovation, job creation, and giving the American people a financial system that serves them better than the current one. It's time we fostered a legislative environment that supports these technologies and keeps America on the cutting edge of the future of finance.

Disclosure: The surveys referenced in this blog were developed on behalf of and paid for by Coinbase, Inc. in consultation with market research provider Impact Research, which collectively interviewed a representative sample size of 2900+ adults (age 18 or older) from GA, NH, NV, MT, OH & nationwide. As well as Morning Consult who surveyed respondents of varying race/ethnicity, gender, educational attainment and region. Findings have been extrapolated to represent the views of the adult general populations.