Democrats embracing crypto, Trump bills to win back voters

Less than a year after President Trump won over the cryptocurrency crowd, some Democrats are trying to reclaim those voters — and the hundreds of millions they pour into elections — ahead of the midterm elections.

They believe backing crypto-friendly Republican-led bills — namely the Genius Act, which passed earlier this month, and the Clarity Act, which is still awaiting final passage — as a critical step to rebuild trust with the digital asset community.

“I’ve watched optimistically as American Democrats begin to tiptoe toward crypto,” Alex Konanykhin, founder and CEO of Unicoin, an equity-backed cryptocurrency, told me. He noted, however, that the change may be “motivated less by ideological conversion and more by political necessity.”

Mark Cuban, the billionaire Democrat who advised Kamala Harris’s presidential campaign on crypto policy, told me he views the bipartisan support for the Genius Act and Clarity Act in the House, along with some Democratic support in the Senate, as “a step in the right direction.”

Mike Novogratz, CEO of Galaxy Investment Partners, called passing the two bills “the smartest move” Democrats could make ahead of the midterms.

“Crypto doesn’t have to be a partisan fight. It never should’ve been,” he told me.

He believes both parties should focus on keeping the U.S. “at the forefront of financial and technological innovation.”

Other crypto sources are skeptical that Dems can do much to win back anyone in the digital asset space. They say they need to wage a far more aggressive charm offensive to actually woo voters, since “Democrats waged the initial war on crypto,” as Konanykhin put it.

This comes as Democrats, particularly those working in Silicon Valley, fear crypto-focused voters and donors — who rallied behind Trump in 2024, contributing an estimated $245 million to his campaign — could come out in drove in the midterms.

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“We can’t win back Congress if we keep alienating anyone with interests in crypto [an estimated 1 in 6 Americans],” one Silicon Valley-based founder told me.

Rep. Ritchie Torres (D-NY) told me his support for crypto, and the Genius Act and Clarity Act specifically, is driven by “good policy” rather than political strategy. Other sources, with close relationships to big donors, argue this move is simply a political necessity ahead of the midterms.

Torres acknowledged that the “Gary Gensler-era did irreparable damage” — a reference to the former SEC chair who targeted cryptocurrency companies — to the relationship between Democrats and the digital asset community but sees his departure as the end of the contentious relationships between the two.

“We’re making progress… this is like couples therapy,” he joked. But Torres also noted that the crypto industry, for its part, failed to engage elected officials or explain the value of its technology.

“Congress is far more educated about these issues now … the answer [for cryptocurrency companies] is not to complain but to educate.”

The Genius Act and Clarity Act are Republican-led bills aimed at creating a more favorable regulatory framework for cryptocurrencies.

The Genius Act, signed into law on July 18, 2025, regulates stablecoins by setting standards for issuance, reserves and consumer protection.

The Clarity Act, which has passed in the House but awaits Senate approval, provides broader guidelines for non-stablecoin digital assets and clarifies regulatory roles for agencies like the SEC and CFTC.

Although prominent Democrats, such as Speaker Emirata Nancy Pelosi (D-Calif.) and Rep. Ro Khanna (D-Calif.), voted in favor of both bills, they’ve faced criticism in their own party.

During a press conference earlier this month, Rep. Maxine Waters (R-Calif.) said the new cryptocurrency bills were “dangerous pieces of legislation” and added they “are a gift-wrapped invitation for Trump to continue his full-scale crypto con.”

In a tweet, Rep. Rashia Tlaib (D-Mich.) slammed the bills and noted, “nearly HALF of corporate $$$ in federal elections came from crypto companies.”

Instead of considering how important the industry has become and why it needs guard rails, she said she voted against the legislation in part because it “fails to address President Trump’s staggering crypto corruption.”

Nonetheless, Torres contends it is “important for the Democratic Party to be the party of tech innovation — and embrace all emerging tech.”

Whether his view will prevail remains to be seen.

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