On the main stage Bitcoin 2024Rep. Wiley Nickels (D-North Carolina) has revealed that he is working to shift the Democratic Party to a pro-Bitcoin and cryptocurrency position.
He told the audience at the event that he recently penned a letter to the Democratic National Committee signed by 28 Democrats, 14 of whom are House members, in which he argued for a new approach to digital asset policy from the party and its presidential candidates.
Nickels explained that a new approach should include “including pro-digital asset language in the party platform, selecting a vice presidential candidate with experience in digital asset policy, selecting a pro-innovation SEC chairman, and meaningfully engaging with the industry.”
We spoke to Rep. Nickels to find out more about how he plans to get the Democratic Party on board with the Bitcoin movement.
Below is a transcript of the conversation, edited for length and clarity.
Frank Corva: What lessons did you learn from the Bitcoin Conference?
Congressman Wiley Nickels: I had a great time, I enjoyed talking to people who are involved in this issue at all levels, and most of all, I enjoyed making the progressive case for cryptocurrency and explaining why the work that we Democrats are doing in Congress is so important.
Keeping this in a bipartisan realm has been my main focus in Nashville and what I’ve been working on in Congress. If this becomes a partisan political issue — and Donald Trump wants to politicize this more than anyone — Congress will set our industry back a decade.
DeFi and Bitcoin will survive no matter who is in power, but it’s critical that we have clear rules and proper regulation of the industry to protect consumers, preserve jobs, and spur innovation. This has been a priority for me in Congress, and I’m pleased to reaffirm it in Nashville.
Colva: I think it’s important for more centrist Democrats like yourself to speak out. Do you think there are more Democrats like you who want to say that they want to keep bitcoin and cryptocurrency jobs in the United States and keep the United States at the forefront of financial innovation?
Senator Nickel: Frankly, I think so, because we have the right ideas on this issue. It is very important to talk about financial inclusion. The current financial system is not working for everyone, but there is a very promising solution, cryptocurrency and Bitcoin, that will greatly help the people that I represent.
I think we’re seeing a new perspective emerge in the Democratic Party on digital asset regulation. Whether you love crypto or hate it, it’s here to stay. So we have to protect consumers, we have to foster innovation, and we have to make America more competitive. These are big issues that are important from a public policy perspective.
We are working hard to build a coalition of like-minded Democrats across our party, I have successfully encouraged the Harris team to engage with industry, and I will continue to advocate for a reset.
The progress in the House of Representatives is undeniable: 71 Democrats joined with Republicans to Fit 21the Digital Asset Market Structure Act. Actions speak louder than words, and having Speaker Nancy Pelosi and members of the House Democratic Leadership back this bill is a good thing as it keeps Bitcoin’s future in bipartisan territory.
Colva: This is a significant enough reason for issue-specific voters and crypto proponents to consider voting Democrat if that’s where the Democrats stand in the upcoming election. Is there anything else you’d like to say to Bitcoin proponents and crypto proponents to let them know that the Democrats don’t want to be the party that stifles this innovation? Can these voters believe that things will be different than what’s happened over the past three and a half years?
Senator Nickel: Absolutely. I thought it was important to write a letter to the DNC and the Harris campaign, and I announced it from the stage in Nashville. The letter urged the DNC to include pro-digital asset language in the party platform, to appoint a pro-progressive SEC chair, and for the campaign to engage with industry experts. These were the key points of the letter:
Thirteen House Democrats joined the letter, with many more on the way. I wanted to make this public so people know this issue is important. 20% of registered voters own cryptocurrency, and there are over a million issue-specific voters, so we need to continue to take appropriate public policy positions on this issue. I think you’ll see that from the Harris team in the coming weeks.
Colva: Looking back at the most practical level, what do you think Democrats could have done differently or better under Biden?
Senator Nickel: On the positive side, there are SEC-approved Bitcoin and Ethereum ETFs. So I can’t be against this. I’ve lobbied hard in Congress on a bipartisan basis in the House Financial Services Committee to get the SEC to do this. I also sit on the Digital Assets Subcommittee. We deal with this issue a lot in the House.
However, the enforcement approach to regulation by Gary Gensler at the SEC has not served Kamala Harris or Joe Biden well. Gary Gensler has the wrong approach, but he is not the only one with a voice in the Biden administration. There are many other senior leaders who think very differently. Many other regulators, like Rostin Benham at the CFTC, also have different approaches. So, there is one regulator who is going in the wrong direction, but it is important for people to know that he does not represent all Democrats.
Colva: Are your Democratic Senators and Representatives educated about the beneficial use cases for Bitcoin, which include financial inclusion, providing financial services to the unbanked in the U.S. and around the world, and cheaper remittances? Do you think politicians are becoming more educated?
Senator Nickel: First of all, this is about education: the people who supported FIT21 on the Democratic side were people who were willing to attend meetings, listen, understand, and learn about this very new technology.
This is not the situation 4 years ago, 8 years ago, or 12 years ago. You are 100% correct. There are 1.4 billion unbanked people in the world, most of whom belong to marginalized communities. This prevents them from managing their finances, deepening poverty and inequality. There is a very strong, progressive case that cryptocurrencies can revolutionize financial inclusion, economic empowerment, and provide new ways to build wealth outside of the traditional financial system.
Colva: Thinking beyond the borders of the United States, Bitcoin gives people property rights (something protected by strong laws in the United States) by default. This is powerful in places where people don’t have such rights. Will more progressives acknowledge that this is important?
Senator Nickel: I hope so. That’s my focus in Congress. We need to embrace new technology. When you look back at the Internet, to think that in the ’90s there were people within one political party who were against the Internet, it’s crazy to think about.
Looking back in 10 years, the positions of those in Congress who opposed the adoption of Web3 will not be outdated: Those opposed to cryptocurrency on the Democratic side are completely wrong and have not given serious thought to how to strengthen the industry and protect consumers.
I’ve spent the better part of the last year and a half talking about how Congressional bills will block the next FTX, and this is an important piece for the American people to pay attention to.
I was on CODEL with Rep. Patrick McHenry (R-NC), the Chairman of the House Financial Services Committee. We went to Singapore, Abu Dhabi, Tokyo, and we toured mature cryptocurrency regulations, regulators, and markets. The one thing they all said was that the U.S. needs to be involved in solving this. The U.S. needs to lead the rest of the world.
This is really about democratizing finance. It will improve people’s lives because it will allow people all over the United States to save and send money. It will be a lot faster and less cumbersome. And that’s a really good thing when you think about how Bitcoin and other Web3 and blockchain technologies will improve people’s lives in the United States and around the world.
Colva: One of the biggest concerns of Bitcoin proponents, as directly mentioned by presidential candidates Trump and Kennedy, is the idea of being able to hold one’s own private key without any AML/KYC requirements. Are Democrats in favor of anyone being able to hold their own keys in a non-custodial manner?
Senator Nickel: Congress has been focused on a few things before moving forward: regulation of the industry, FIT21, the Digital Asset Market Structure Act, and stablecoins. Sub 121 For custodian banks.
These are the issues that we need to address first and then move on to the next steps, and I am really hopeful that we can resolve these issues this session of Congress.
Colva: Two days after the Bitcoin Conference, some of the Bitcoin held by the US government moved addresses. Do you know where the government moved it? Is the US government selling it? Have you heard anything about what’s going on?
Senator Nickel: No, not yet.
Colva: Any final thoughts you’d like to share?
Senator Nickel: “We are simply urging a realignment with the Harris campaign on this issue. Trump has certainly made his position clear.”
I am simply encouraging people who own cryptocurrencies (who are evenly split across both parties) to know that this is an important issue for Democrats in the U.S. Congress.
