Twice rejected by American voters in favor of Donald Trump, the Democratic party now faces its most severe crisis of identity in four decades. Nowhere is the party’s search for relevance in Trump’s America more desperate than in its embrace of cryptocurrency, a sector whose existence depends upon its ability to circumvent the financial regulatory state the Democrats spent a century constructing. How else to explain the Democratic representative Ritchie Torres – whose South Bronx district is the poorest in the United States – joining forces with the Republican Tom Emmer to champion cryptocurrency through their newly formed congressional Crypto caucus.
Congressional Republicans have always been uniform in their support for cryptocurrency: in May 2024, just three Republican House members voted against a bill to significantly relax regulations on digital tokens. But since 2016, the cryptocurrency industry has made steady inroads into the Democratic party. That convergence, if it continues, will represent a return to the pre-New Deal financial politics that the party spent a century rejecting.
