Are Democrats Against Crypto? Rep. Ritchie Torres Answers

Bankless Nation, we have a special episode for you today, a bonus episode. The question on my mind is are Democrats for or against crypto? We have Representative Richie Torres, who happens to be a Democrat, helping to answer that question. I'm taking this episode solo today, but it is jam-packed. This is our first Democratic member of Congress on Banklist. So you know we had to ask him, what does he think about crypto? Is it a partisan issue? What does he think of Gary Gensler and CDBCs? Will crypto become a 2024 election campaign issue? And how about his party? How about the Democrats? How do we get more support for crypto among progressives and among Democrats? That was the question today. So, yes, we are having a politician on the podcast today. And I want to begin by saying this: Bankless is not a political podcast. We're not red, we're not team blue, we don't have a party affiliation to the US or in any country. What we do care about are values like decentralization, autonomy, and power to the people that underlie crypto technology. You've heard us talk about this before on the Bankless podcast. And to the extent these values are political, so are we. This is not a clean party lines distinction. We'll have anyone on the podcast from Team Red, Cynthia Lemmis, Ted Cruz, they're all welcome here. So is AOC and Elizabeth Warren. We just want to have the conversation. For my own part, as I've said before, I see massive value for both conservatives and true progressives in the crypto movement. And I think that'll come out here today. I'll be back to have this conversation with Representative Richie Torres right after we hear from the fantastic sponsors who made this episode possible. And Bankless Nation, I'm super excited to introduce you to Representative Richie Torres. He's a member of the U.S. House of Representatives from New York's 15th Condestinal District. This is basically the Bronx. Uh, Representative Torres was elected to Congress in the 2020 elections and is one of the few members of the Democrat Party who is pro crypto. And that is great to hear. Representative Torres, welcome to Bankless. How are you doing today?

It's a pleasure to be here.

Can you tell us? Uh, firstly, we've been looking for some Democrats to come on Banklist to talk a bit more about crypto. Um, and you are a name that has come to mind um more than a few times.

Tell us about your position on crypto. Why are you supportive? Why are you pro crypto?

Uh, sure. Uh, and I and I should start with a disclaimer. You know, I've I've never been a user of crypto, I've never been an investor in crypto.

So I have no personal skin in the game.

Uh, but I do have an intellectual curiosity

about the innovative possibilities of crypto and blockchain. Like I'm drawn to

the potential of blockchain

to radically decentralize the internet, creating a new layer, commonly known as Web3.

Or radically decentralized finance, creating a better, cheaper, and a and faster payment system, particularly for the lowest income families.

You know, I'm excited about the possibility of creating

a decentralized economy, a progressive ownership society

in which workers and creators

can keep a greater share of their own income,

can

enjoy and own the fruits

of their own labor.

I'll use an analogy. So I represent a neighborhood known as Arthur Avenue, which historically

Was actually controlled by the mafia.

And if you owned a business on Arthur Avenue, you would have to pay a toll or taxes to the mafia.

And there's a sense in which big tech

is the mafia

of Web2.

You know, Apple has a take rate

of about 30%,

YouTube 50%, Facebook 100%.

In fact, big tech has a much higher take rate than the mafia.

And so what I find most appealing about crypto and blockchain

is that it will enable workers and creators.

To liberate themselves from the excessive and often extortionary rent-seeking

of the legacy financial system and the legacy internet.

These are many of the benefits that we see a representative Torres, but I want to ask you the question if you could do some political analysis, how come you think this topic of crypto is so polarizing in Capitol Hill?

Well, I think the starting point is a lack of education.

Like everyone seems to have an opinion on crypto, everyone has heard of crypto,

but few people can define it. I mean, I would venture to guess that most members of Congress

could not define crypto, blockchain, and web 3,

and yet everyone is rushing to offer an opinion on the subject.

So the the

You know, I said earlier at a congressional hearing

that there seems to be an anti-crypto

derangement syndrome

that has clouded clear and rational thinking

about the subject of crypto, and much of

it is rooted in ignorance. What you will find is that the pro crypto

members of Congress are much more knowledgeable about the technology

than the opposition.

Would you think there was a time, I would say, in the not too um distant past where I would have said crypto was kind of a bipartisan issue and there was kind of some bipartisan support, uh, but not a lot. A lot of bipartisan apathy, I would say, or neutrality, let's say. But increasingly it's it's seemed to have split among party lines. And I'm wondering if you see that. And it I'm I'm wondering if um you're like

What could you say on behalf of the Democratic Party? Like what how would you sell members of the Democratic Party on this technology? And why do you think it has split across partisan lines?

Well, my perception is that the divide on crypto

is not so much

partisan or ideological.

As it is generational,

you will find that younger Democrats like myself and Wiley Nickel, who sits on financial services,

are much more open to the innovative possibilities of crypto and blockchain.

And I want to be crystal clear

whatever one's personal view

of crypto is irrelevant.

Like for me as a policymaker,

my role is not to evaluate the utility of crypto and blockchain.