Crypto Must Bridge the Political Divide to Secure Its Future, Says Centrifuge’s Eli Cohen
With the latest U.S. elections signaling a shift in political momentum, Eli Cohen, Chief Legal Officer at Centrifuge, argues that the cryptocurrency industry must reassess its political strategy. Historically aligned with Republicans, the crypto sector now faces a stark reality: without bipartisan cooperation, legislative progress could stall — or worse, be undone by future administrations.
Cohen points to Democratic Socialist Zohran Mamdani’s win in New York’s mayoral race as a sign of growing progressive influence. Combined with Democratic victories in key gubernatorial races like New Jersey and New York, this surge underscores the need for the crypto industry to actively engage with Democratic lawmakers, rather than relying solely on Republican allies.
“The industry has to wake up to the fact that Democrats are not going away,” Cohen said. “If we want sustainable regulation that survives changes in leadership, then we need input and support from both sides of the aisle.”
Cohen emphasizes that long-term regulatory clarity and legal stability will only come through bipartisan cooperation. He warns that a partisan approach could backfire, especially if a Democratic administration in the future decides to reverse any crypto-friendly legislation passed under a Republican majority.
“We don’t want to find ourselves back in the Biden-Gensler era,” Cohen noted, referencing the SEC’s more aggressive stance on crypto under Chairman Gary Gensler. “And the worst thing we could do is alienate Democrats to the point where they’re motivated to roll back everything we’ve built.”
Current Legislative Landscape: Gridlock and Opportunity
Despite a government shutdown, Cohen says the crypto legislative process remains largely unaffected — at least for now. The House has already passed its version of the Financial Innovation and Technology for the 21st Century Act, commonly referred to as the Clarity Act. That bill now awaits further action in the Senate, where the real battle for consensus is taking place.
“The Senate is where the real action is happening,” Cohen explained. “There are ongoing conversations with both Democratic and Republican lawmakers. But we’re not going to see movement unless both parties come to the table.”
In the Senate, two competing versions of the market structure bill are being considered. Due to the filibuster rule, any legislation requires at least 60 votes to proceed — making bipartisan support not just beneficial, but essential.
“The math is simple,” Cohen said. “Unless Republicans somehow remove the filibuster — which they won’t — we need Democrats on board. And that means the industry needs to do a better job at engaging with them.”
Crypto’s Uneasy Response to Democratic Proposals
Some of the friction stems from leaked Democratic proposals that have sparked backlash from the industry. One such draft, reportedly circulated by Democrats but leaked by Republican lawmakers, included a contentious provision: insider trading restrictions specific to public officials and their families, particularly targeting those with ties to the Trump administration.
While the proposal was never officially released, and Democratic Senator Gallego later clarified that it was an internal draft rather than formal legislation, the industry’s reaction was swift and negative.
Cohen believes this response was shortsighted. “Most people in the space don’t actually oppose insider trading rules. The problem is politics — including that provision guarantees that Trump wouldn’t sign the bill if he’s re-elected. And everyone knows that.”
Republicans echoed this concern, not necessarily rejecting the content of the rule but acknowledging its political implications. Including it could be a deal-breaker for any bipartisan legislation.
A Call for Strategic Political Engagement
Cohen stresses that the crypto sector must mature politically. Instead of reacting emotionally to proposals from one party, the industry must build working relationships across the political spectrum and help shape legislation from the inside.
“There’s a difference between advocacy and obstruction,” Cohen said. “We need to be in the room when these laws are written. That means showing up, being reasonable, and understanding the policy concerns of both sides.”
He adds that many in the crypto world still view regulation as a threat rather than an opportunity. That mindset, he warns, is outdated and dangerous.
How Crypto Can Appeal to Democrats
To make inroads with Democrats, crypto advocates must align their messaging with progressive priorities. That includes emphasizing financial inclusion, promoting innovation-driven economic growth, and ensuring transparency and consumer protection.
Cohen suggests highlighting how blockchain technology can support underbanked communities, reduce remittance costs, and increase access to capital for small businesses. “These are issues that matter to progressive lawmakers. If we can demonstrate that crypto serves those goals, we’ll find more allies.”
The Importance of Long-Term Thinking
Cohen urges the industry to think beyond short-term wins. “Passing a bill is only half the battle. The real test is whether that framework remains in place a decade from now.”
Without cross-party support, regulatory structures risk being dismantled with every change in administration. That kind of instability discourages investment and stifles innovation.
“Businesses need certainty,” Cohen said. “They won’t build if they think the rules will change every four years.”
Building a Broader Coalition
To gain traction, the crypto sector must broaden its coalition. That includes engaging with civil rights groups, technology advocates, and financial reform organizations — many of whom have the ear of progressive lawmakers.
By demonstrating shared values and finding common ground, the industry can shift perceptions and gain credibility in circles where skepticism currently dominates.
Education as a Key Strategy
Misinformation and lack of understanding remain major hurdles. Many lawmakers lack a deep understanding of how blockchain technology works or what its real-world applications are. Cohen believes that educational initiatives — including private briefings, policy papers, and public hearings — are essential.
“The more informed lawmakers are, the more likely we are to get balanced regulation,” Cohen said. “We can’t expect them to support us if they don’t understand us.”
Conclusion: A Time for Political Maturity
The crypto industry stands at a crossroads. With political winds shifting and regulatory frameworks still in flux, the path forward requires pragmatism, diplomacy, and a willingness to engage with all sides.
For Cohen, the message is clear: “Crypto can’t afford to play partisan games. If we want to be part of the financial future, we need to act like it — and that means building bridges, not burning them.”