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Move Fast and Break Everything: Crypto, Democrats and Deregulation

Author

Listed:
  • Thomas Ferguson

    (University of Massachusetts, Boston)

  • Jie Chen

    (University of Massachusetts, Boston)

  • Matthias Lalisse

    (Johns Hopkins University)

  • Paul Jorgensen

    (University of Texas Rio Grande Valley)

Abstract

In November, 2022, the giant cryptocurrency exchange FTX filed for bankruptcy. The financial fallout from that event, including two bank failures, made crypto politically radioactive. Yet less than three years later, crypto, like Donald Trump himself, staged a triumphant Second Coming, as the President signed into law the so-called "GENIUS Act" - short for Guiding and Establishing National Innovation for U.S. Stablecoins. Analysts have traced the industry's phoenix-like resurrection, showing how key crypto billionaires and companies aligned with Trump early in the 2024 campaign, transforming him from a skeptic into a political champion. But the flip side of the story is much less discussed: how support for crypto has grown among Democrats. This paper analyzes voting by House Democrats on the GENIUS and Clarity Acts, in the context of the campaign for sweeping financial deregulation mounted by both crypto and traditional finance. The implications of a growing race to the bottom in financial regulation and emerging challenges in cybersecurity receive attention.

Suggested Citation

  • Thomas Ferguson & Jie Chen & Matthias Lalisse & Paul Jorgensen, 2026. "Move Fast and Break Everything: Crypto, Democrats and Deregulation," Working Papers Series inetwp245, Institute for New Economic Thinking.
    • Handle: RePEc:thk:wpaper:inetwp245
    DOI: 10.36687/inetwp245
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    File URL: https://doi.org/10.36687/inetwp245
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    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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