Crypto has broken into the national discourse this election cycle.So we measured swing states’ relative levels of crypto interest. Two battlegrounds expected to be among the tightest races in November — Pennsylvania and Wisconsin — have seen the fourth- and fifth-biggest jumps in crypto search interest since the last election in 2020, measured as a proportion of total searches using Google Trends.Michigan saw the eighth-biggest jump in crypto search interest, while Georgia stayed put. Meanwhile, Arizona and Nevada experienced moderate drops in interest since 2020.VIDEO One factor that could have raised people’s crypto interest this year was the listing of Bitcoin and Ethereum exchange-traded products (ETPs). The number of Americans who hold crypto could grow as ETPs such as these broaden investor access. Together, the Bitcoin and Ethereum ETPs already contain $65 billion in onchain holdings. (Note: Though commonly called ETFs, these products are actually registered as ETPs using SEC Form S-1, indicating the underlying portfolios are not comprised of securities.)The SEC’s ETP approvals represent major crypto policy milestones. Regardless of which party wins office in November, many politicians expect momentum to build with the passage of bipartisan crypto legislation. An increasing number of policymakers and politicians are speaking positively about crypto on both sides of the aisle.The industry has inspired other significant movements on the policy front this year as well. At the federal level, the House of Representatives approved the Financial Innovation and Technology for the 21st Century (FIT21) Act with bipartisan support, including 208 Republicans and 71 Democrats voting in favor. Pending Senate proceedings and approval, the bill could provide much-needed regulatory clarity to crypto entrepreneurs.No less meaningfully, at the state level, Wyoming passed the Decentralized Unincorporated Nonprofit Association (DUNA) Act, a law that gives decentralized autonomous organizations (DAOs) legal recognition and enables blockchain networks to operate lawfully without compromising on decentralization.The EU and the United Kingdom have been the most proactive in engaging the public on questions of crypto policy and regulation. Various European agencies have put out many more calls for input than, for example, the U.S. Securities and Exchange Commission. Meanwhile, the European Union’s Markets in Crypto Act (MiCA) is the first comprehensive crypto-related policy regime to pass into law and it is set to come into full effect by the end of the year.Stablecoins — which have become one of the most popular crypto products — are one of the biggest topics for policy discussion, with several bills already floating around Congress. One of the tailwinds, at least in the U.S., is the realization that stablecoins can fortify the U.S. dollar’s position abroad even as the dollar’s global reserve currency status slips. Today, more than 99% of stablecoins are denominated in USD, which dwarfs the next largest denomination: 0.20% in Euro.In addition to projecting the power of the American dollar around the world, stablecoins are potentially strengthening the country’s financial footing at home. Despite being only a decade old, stablecoins have risen to become a top 20 holder of U.S. debt, putting them ahead of countries like Germany.While some countries are exploring central bank digital currencies (CBDCs), the stablecoin opportunity sitting right in front of the U.S. is ripe for the taking. Between these discussions and the number of prominent political figures now weighing in about crypto generally, we expect more countries will start to flesh out their crypto policies and strategies in earnest.This post is an excerpt from our 2024 State of Crypto Report.Sign up for a16z crypto’s biweekly newsletter here. And for more regular data updates, keep an eye on our State of Crypto Index, an interactive tool, updated monthly, that tracks the health of the crypto industry from a technological, rather than financial, perspective through measures of industry rates of innovation and adoption. Also be sure to explore our new Builder Energy dashboard, which tracks where we’re seeing the most “builder energy” across crypto.The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the current or enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; a16z has not reviewed such advertisements and does not endorse any advertising content contained therein.This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investment-list/.Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures/ for additional important information.
