Crypto and politics – how younger generations are shaping the landscape

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(Kitco News) – Cryptocurrencies are still viewed with great suspicion by many in the more established financial worlds, but the younger generations have taken a much more exploratory attitude towards the nascent asset class, and it is beginning to reshape the political landscape.

According to a recent poll conducted by the Crypto Council for Innovation (CCI), a candidate’s stance on crypto is starting to play a factor in how they are received by their voters, and that could influence election results — starting with the upcoming midterm elections in the United States .

“Many elections are likely to be decided by narrow margins, and new numbers indicate that the crypto community has a chance to make its voice heard in statehouses and the halls of Congress,” CCI said. “1 in 7 hold crypto and say they are ready to vote for pro-crypto candidates.”

And the results weren’t limited to just red states or blue states, as voters from across the political spectrum believe that cryptos have more to offer society.

“Almost 1 in 2 people on both sides of the aisle say crypto is a long-term part of the economy,” the report said. “An outright majority reflects what the industry has been calling for: driving rules that protect consumers while encouraging innovation.”

CCI added that nearly 3 out of 4 people who currently own crypto see it as the future of finance. More than 50% of African-American and Hispanic respondents “have a more favorable view of crypto and credit unions than banks.”

A total of 1,208 people participated in the CCI survey from October 8 to 10 about their views on crypto and the upcoming election. Independents (17%), Hispanic Americans (18%), African Americans (18%), and young voters (20%) owned crypto at higher than average rates.

The share of respondents who own cryptocurrency (13%) was comparable to other asset classes, including stocks (16%) and mutual funds (12%), and they are significantly more popular than bonds (5%). Cryptos are the leading investment for under-45 voters.

Further evidence of the changing trends between generations was found in the responses to the question of where respondents preferred to get their financial information from – with 36% of respondents showing a preference for social media versus 31% for traditional news outlets.

Cryptos continue to see an increase in the number of individuals who want them properly regulated, with 45% of respondents indicating that they “want lawmakers to treat crypto as a serious and valid part of the economy,” and 52% suggesting that crypto needs more regulation.

Changes in savings for pensions

A separate study by Charles Schwab found that young investors in the US are increasingly choosing crypto over traditional 401(k)s to save for retirement. The survey found that 37% of Gen Z workers and 54% of millennials got their first investment experience through a 401(k) compared to 61% for both Gen X and baby boomers.

Younger investors were more likely to invest in crypto, real estate, annuities and small businesses than their older counterparts, with 11% of Gen Z workers indicating their first investment was in crypto. This group also represents a growing percentage (22%) of people who became involved in investing through a mobile application.

32 percent of respondents said they wish they could invest in crypto via their 401(k), including 46% of Gen Z and 45% of millennials.

As the popularity of cryptocurrencies continues to rise, especially among the younger generations, politicians would do well to take note of the changing landscape and establish inroads into a voting base that has the potential to be a force for change for decades to come.