On the bitcoin 2024 main stage, Rep. Wiley Nickel (D-NC) shared that he is working to shift Democrats to a more pro-bitcoin and pro-cryptocurrency stance.
He told the audience at the event that he had recently written a letter to the DNC signed by 28 Democrats, 14 of whom are in Congress, advocating for a new approach to digital asset policy by the party and its presidential candidate.
Rep. Nickel explained that the new approach should include “pro-digital asset language in the party platform, selecting a vice presidential candidate with expertise in digital asset policy, selecting an SEC chair who is pro-innovation, and engaging with the industry in a meaningful way.”
We remain in touch with Rep. Nickel to try to learn more about how he plans to get Democrats on board with bitcoin.
Below is a transcript of our conversation, edited for brevity and clarity.
Frank Corva: What conclusions did you draw from the bitcoin conference?
Representative Wiley Nickel: I had a great time. I enjoyed talking to people involved in this issue at all levels and, most importantly, making the progressive case for crypto and explaining why the work we are doing as Democrats in Congress is so important.
My main goal in Nashville was to keep this issue in the bipartisan space, and that's what I've been working on in Congress. If this becomes a partisan political issue (and Donald Trump, more than anyone, wants to politicize this issue), the industry will be set back a decade in Congress.
DeFi and bitcoin will continue to exist regardless of who is in power, but it is very important that we have clear rules, that we have good regulation for the industry to protect consumers and keep those jobs here and encourage innovation. That has been my goal in Congress and I was happy to be able to reiterate that in Nashville.
Corva: I think it's important for more moderate Democrats like you to have a voice. Do you think there are more Democrats like you who do want to speak out like that, who want to say that they will keep bitcoin and cryptocurrency jobs in the United States and want the country to be at the forefront of financial innovation?
Representative Nickel: I do this because, frankly, we are right on this issue. Talking about financial inclusion is incredibly important. The current financial system simply doesn't work for everyone, and we have an incredibly promising solution with cryptocurrencies and bitcoin that will help the people I represent in a big way.
I think we're seeing a new perspective on digital asset regulation emerging in the Democratic Party. Whether you love crypto or hate it, it's here to stay. So we need to protect consumers, encourage innovation, and bolster U.S. competitiveness. Those are the big issues that matter in terms of public policy.
We are working hard to build a coalition of like-minded Democrats across our party. We have successfully encouraged the Harris campaign to engage with the industry, and I continue to advocate for the need for a reset.
The progress we made in the House of Representatives is undeniable: 71 Democrats joined Republicans in FIT21the Digital Asset Market Structure Bill. Actions speak louder than words. The fact that he was able to get Nancy Pelosi and members of the House Democratic leadership to support this bill says good things for keeping bitcoin’s future in that bipartisan space.
Corva: That's a big, good reason for single-issue or pro-crypto voters to consider voting more Democrat if that's their stance in the upcoming election. Is there anything else you'd like to say to pro-bitcoin or pro-crypto voters so they know that Democrats don't want to be the party that stifles this innovation? Can these voters believe that things will be different than they have been over the course of the last three and a half years?
Representative Nickel: Absolutely, and I thought it was important to write a letter to the DNC and the Harris campaign, which I announced in Nashville from the stage. It's a letter encouraging the DNC to include pro-digital asset language in the party platform, to appoint a pro-innovation SEC chair, and for the campaign to engage with industry experts. Those were some of the main points of the letter.
We have 13 other House Democrats who have signed on to the letter, and many more are supporting it. I wanted people to know that this is an important issue. 20% of registered voters own cryptocurrency, and there are over a million voters who care about a single issue, so we need to continue to offer good policy positions on the issue. I think we'll see that from the Harris campaign in the coming weeks.
Corva: Looking back, on a more practical level, what do you think Democrats could have done differently or better during the Biden administration?
Representative Nickel: On the plus side, we have bitcoin and ether ETFs that the SEC approved, so I can't disagree with that. We worked hard in Congress to get the SEC to do this in a bipartisan way in the House Financial Services Committee, where I serve. I'm also on the Digital Assets Subcommittee. We dealt with this issue a lot in the House.
But the regulation by enforcement that Gary Gensler has embraced at the SEC has not served the interests of Kamala Harris or Joe Biden. Gary Gensler has taken the wrong approach, but he is not the only voice in the Biden administration. There are many other senior leaders who think very differently. Many other regulators, like Rostin Behnam at the CFTC, have a different approach. So, we have a regulator who is moving in the wrong direction, but it is important for people to know that he does not represent all Democrats.
Corva: Are Democratic Senators and Congressmen learning about the positive uses of bitcoin? These include financial inclusion; providing financial services to the unbanked, not just in the United States, but around the world; cheap remittances; etc. Do you think politicians are becoming more knowledgeable?
Representative Nickel: First, it's about education. The people who supported FIT21 on the Democratic side were the ones who were engaged, who were willing to sit in on meetings and listen, understand, and learn about this new technology.
We are not in the same situation as we were four, eight or twelve years ago. As for what you say, you are absolutely right. There are 1.4 billion unbanked people around the world, and most of them are part of marginalized communities. This makes it difficult for them to manage their finances and deepens poverty and inequality. There are very strong progressive arguments about how cryptocurrencies can revolutionize financial inclusion, economic empowerment and offer new ways to generate wealth outside the traditional financial system.
Corva: Beyond the borders of the United States, bitcoin grants property rights (something we in the United States protect with strict laws) by default to people. This is very powerful in places where people don't have those rights. Will more progressives come out to recognize that this is important?
Representative Nickel: I certainly hope so. That's been my goal in Congress. We need to embrace new technologies. If you look back at the Internet, to think that in the 1990s there were people from one political party who were opposed to the Internet is crazy.
When we look back a decade from now and see the opposition to adopting Web3 in Congress, that stance will not age well. The people who oppose cryptocurrencies on the Democratic side are completely misguided and are not really considering how we can strengthen this industry and protect consumers.
I spent the better part of the last year and a half talking about how our legislation in Congress will prevent the next FTX. That's an important part that Americans need to focus on.
I was part of a congressional delegation with Patrick McHenry (R-NC), the chairman of the House Financial Services Committee. We went to Singapore, Abu Dhabi, and Tokyo to see how cryptocurrency regulation, regulators, and markets are developing. One of the things they all said is that they need the United States to be part of the solution. They need the United States to lead the rest of the world.
It's really about democratizing finance. When we do that, we'll be able to help people all over the United States save money and transfer it. They'll be able to do it much faster and with less red tape. These are really good things when it comes to helping people in the United States and around the world with bitcoin and other Web3 or blockchain technologies.
Corva: One of the big concerns for Bitcoiners (and something that both presidential candidates Trump and Kennedy have directly discussed) is the idea of being able to hold their own private keys without any AML/KYC requirements. Are Democrats in favor of everyone being able to hold their own keys without custody?
Representative Nickel: In Congress, we've really been focused on getting a few things done before we move on to the next level of things. That's regulating the industry, FIT21, the digital asset market structure bill, and stablecoins. We've gotten sidetracked with SAB121 for custody banking.
Those are the things I think we need to address first, and then we'll move on to the next layer of things, and I'm very hopeful that we can accomplish those things in this Congress.
Corva: Two days after the bitcoin conference, some of the bitcoins that were in the custody of the US government changed addresses. Do you know where the government moved them? Is the US government selling them? Have you heard anything about what is going on?
Representative Nickel: No, I haven't.
Corva: Do you have any final thoughts you would like to share?
Representative Nickel: We're just pushing hard for the Harris campaign to restart the process on this issue. Trump has certainly made his position clear.
I'm simply pushing to make sure that people who own cryptocurrencies, evenly split between parties, know that this is an issue that matters to Democrats in the US Congress.
