“AI poses a number of safety concerns and I fully admit that there are a number of issues I worry about as AI continues to develop. In particular, you could imagine a scenario where AI makes these chatbots much more efficient, much more believable, allows
predators to prey on children more easily online. That is a real concern and something that I think that we in this committee should be very concerned about. And I know that's a bipartisan worry.
“On the flip side of it, I also worry that that legitimate concern is justifying some overregulation or some preemptive overregulation attempts that would frankly entrench the tech incumbents that we already have and make it actually harder for new entrants
to create the innovation that's going to sort of power the next generation of American growth and American job creation.”
This is what J.D. Vance, Ohio Senator, said on 11 July 2024 at the US Senate Committee on Commerce, Science, and Transportation committee hearing on
‘The Need to Protect Americans’ Privacy and the AI Accelerant.’
Vance continued: “very often CEOs, especially of larger technology companies that I think already have advantageous positions in AI will come and talk about the terrible safety dangers of this new technology and how Congress needs to jump up and regulate
as quickly as possible. And I can't help but worry that if we do something under duress from the current incumbents, it's going to be to the advantage of those incumbents and not to the advantage of the American consumer.”
Days later, on 15 July 2024, Donald Trump
named the former ‘never Trumper’ Republican as his vice-presidential nominee. Republican National Convention (RNC) delegates formally selected Vance the next day. But who is J.D. Vance and what impact will he have on the US fintech ecosystem?
Who is J.D. Vance?
Known for his memoir-turned-film Hillbilly Elegy, Vance is a former venture capitalist with ties to Silicon Valley, is pro open-source AI, pro-crypto, and has brought tech savvy to the 2024 US presidential race.
According to
The Tech Buzz, the current Senator could “significantly influence policies affecting the startup and VC ecosystem if the Trump-Vance ticket is elected.” Having previously worked at Peter Thiel-founded company Mithril Capital, Vance has continued support
from the former CEO of PayPal. After this, Vance co-founded Narya Capital, an early-stage venture capital firm focused on using technology and science to serve startups in underserved regions of the US.
Further, as the quote above suggests, Vance is not against AI and takes a measured approach to the technology, questioning the best way in which it can be regulated. While former President Trump has denied association with the ideas presented in
Project 2025, with more than 100 conservative organisations being involved in its creation, if Republicans take back the White House in November, a number of these policies could be implemented.
One such ideology is that the US is unknowingly feeding data to and improving AI datasets of companies that are beholden to China’s CCP. It remains to be seen if Vance, who in favour of open source AI, will drive changes in attitude within the Republican
Party.
Project 2025’s publisher, Heritage, is also staunchly against a CBDC, claiming that “a CBDC would provide unprecedented surveillance and potential control
of financial transactions without providing added benefits available through existing technologies.” Alongside this, there is a belief that both the SEC and the CFTC have
been “irresponsible actors in the digital asset area. They have had more than a decade to promulgate rules governing digital assets, yet the SEC has utterly failed to do so, and the CFTC has provided only minimal guidance.”
In late June 2024, Vance
started circulating draft legislation that would revamp how the US regulates digital assets and improves Republican-led legislation that the House passed with support from 71 Democrats. The plan would overhaul how the SEC and the CFTC oversee the crypto
market, and in turn, Vance could become a popular choice among crypto industry leaders.
The last VC on a ticket was Mitt Romney, and it remains to be seen whether policies from 2012 will emerge in 2024. At the time, Governor Mitt Romney
prioritised tax reform and on top of this, made a number of public statements encouraging skilled immigrants to remain in the US, pushing for more STEM graduates too.
What does the finance and fintech industry think of J.D. Vance?
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
“US indices look set to hang onto a wave of positivity that has washed over the market. With hopes for multiple interest rate cuts in the US rising, and a triumphant Trump at the Republican Convention easing immediate volatility concerns, Wall Street stocks
have been making further gains.
“There are sprinkles of more optimism about the timing of interest rate cuts from the Federal Reserve with two to three reductions this year now being priced in by financial markets. It comes after an interview with Fed Reserve chair Jerome Powell at the
Economic Club of Washington. He said the Bank had moved closer to cutting interest rates, given the economy was in much better balance and crucially that the 2% target did not have to be reached before borrowing costs could come down.
“Rapturous applause greeted Donald Trump at the Republican Convention, as he selected JD Vance to on the ticket as his vice-presidential pick for the elections. Vance has morphed from fierce critic of Trump to frenemy and now running mate. He’ll be popular
among grass roots Republicans, particularly given his back story, detailed in his memoir ‘Hillbilly Elegy” about his family's struggles with poverty and addiction. But questions remain over how successful he’ll be in winning over wavering voters, particularly
given his anti-abortion stance.
“Nevertheless, Trump’s triumphant return to the stage, appears to have lifted further lifted expectations that he will win in November. His company Trump Media and Technology Group Corp jumped 31%. Oil majors like Exxon Mobil also gained ground, despite
the dip in crude prices, given the expectation another Trump Presidency is likely to place emphasis on energy independence and continue the increased pace of drilling permits, which has taken place under the Biden administration.
“Trump has vowed to accelerate the production of fossil fuels and roll back some of Biden’s greener policies in the inflation reduction act. Private prison operators Geo Group and CoreCivic have also made big strides, given the expansion the sector underwent
during his first administration.”
Nigel Green, CEO, deVere Group
“Vance, an outspoken supporter of Bitcoin and other digital currencies, represents a significant and strategic move in the evolving political landscape where crypto has become a major issue. This decision is not only smart but also a potentially transformative
masterstroke. This shift has also made crypto a hot-button issue in political discourse. Younger generations, in particular, are deeply invested in the promise of decentralized finance, seeing it as a way to democratize access to financial tools and economic
opportunities.
“By choosing Vance, Trump taps directly into this zeitgeist, aligning his campaign with the future-oriented aspirations of a significant voter base. Vance’s support for crypto signals to these voters that the Trump campaign is forward-thinking and committed
to embracing innovation. This is a sharp contrast to President Biden, whose age and perceived reluctance to fully endorse the crypto revolution is likely to alienate younger voters. The Trump campaign is gaining deep-pocketed support from the crypto industry’s
wealth execs.”
“With over $100 million already pledged, the campaign will have the resources to mount an aggressive and far-reaching campaign. This influx of funds will enable targeted advertising, extensive grassroots mobilization, and sophisticated digital outreach,
all of which are crucial in a competitive election. Trump’s promise to fight against what he frames as Biden’s restrictive policies on cryptocurrencies has struck a chord with these deep-pocketed executives. The financial contributions from the crypto industry
could prove to be a game-changer in the election. By choosing Vance, a pro-Bitcoiner, Trump further enhances this proposition.
“Vance’s support for crypto also places him on the right side of history regarding innovation and economic freedom. Crypto represents a radical shift away from traditional, centralized financial systems. They offer the promise of greater financial inclusion,
lower transaction costs, and enhanced privacy. Vance’s alignment with these values positions him as a champion of the future, advocating for policies that promote technological advancement and economic liberty. This stance is likely to resonate with voters
who feel disenfranchised by the current financial system and are looking for alternatives that offer more control and opportunity.
“Vance’s pro-crypto stance not only highlights his youth but also his willingness to engage with and promote innovative solutions to contemporary problems. This youthful vigor could be a decisive factor for voters looking for a candidate who represents the
future rather than the past. Choosing JD Vance as his running mate is a savvy move by Donald Trump, positioning his campaign to capitalize on the growing importance of crypto in American society, business and financial system. Vance’s pro-crypto stance appeals
to younger voters, attracts influential donors, and positions the Trump campaign on the right side of history regarding innovation and economic freedom. In a political landscape increasingly shaped by technological advancements and the search for economic
alternatives, it would seem that Vance’s selection is stroke of genius.”