“AI raises a number of security concerns, and I fully admit that there are a number of issues that concern me 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’s a real concern and something that I think we on this committee should be very concerned about. And I know it’s a bipartisan concern.

“On the other hand, I also worry that this legitimate concern justifies some overregulation or some attempts at preemptive overregulation that would, frankly, entrench the technology incumbents that we already have and actually make it harder for new entrants to create the innovation that will kind of fuel the next generation of American growth and American job creation.”

This is what JD Vance, Senator from Ohio, said on July 11, 2024 at the Committee on Commerce, Science, and Transportation of the United States Senate hearing on “The Need to Protect Americans’ Privacy and the Acceleration of Artificial Intelligence.”

Vance continued: “Very often, CEOs, particularly of big tech companies that I think are already in a strong position in AI, come in and talk about the terrible security dangers of this new technology and how Congress needs to step in and regulate as quickly as possible. And I can’t help but worry that if we do something under pressure from the incumbents, it will be for the benefit of those incumbents and not for the benefit of the American consumer.”

Days later, on July 15, 2024, Donald Trump named the former Republican “never Trumper” as his vice presidential nominee. Delegates to the Republican National Convention (RNC) formally chose Vance the next day. But who is JD Vance and what impact will he have on the U.S. fintech ecosystem?

Who is JD Vance?

Best known for his memoir-turned-film Hillbilly Elegy, Vance is a former venture capitalist with ties to Silicon Valley, an advocate for open-source artificial intelligence and cryptocurrency, and has brought his tech savvy to the 2024 U.S. presidential race.

Second The buzz of technologythe current senator could “significantly influence policies affecting the startup and VC ecosystem if the Trump-Vance duo is elected.” Having previously worked at Peter Thiel’s firm, Mithril Capital, Vance continued to receive support from the former PayPal CEO. After that, 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 United States.

Furthermore, as the quote above suggests, Vance is not anti-AI and takes a measured approach to the technology, questioning how it can best be regulated. While former President Trump has denied association with the ideas presented in
Project 2025With more than 100 conservative organizations involved in its creation, some of these policies could be implemented if Republicans retake the White House in November.

One such ideology is that the U.S. is unwittingly feeding data and improving AI datasets to companies beholden to the Chinese CCP. It remains to be seen whether Vance, who favors open-source AI, will lead the shift in attitudes within the Republican Party.

Even the publisher of Project 2025, Heritage, is firmly opposed to a CBDCarguing that “a CBDC would provide unprecedented oversight and potential control of financial transactions without providing additional benefits available through existing technologies.” Alongside this, there is the belief that it is the SEC and the Transparency Commission have been “irresponsible actors in the digital asset space. 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.”

At the end of June 2024, Vance started A draft bill is circulating that would revamp the way the U.S. regulates digital assets and improve on Republican-led legislation that the House passed with the support of 71 Democrats. The plan would reorganize how the SEC and CFTC oversee the cryptocurrency 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 the policies of 2012 will emerge in 2024. At the time, Gov. Mitt Romney
priority tax reform and, in addition, has made a series of public statements encouraging skilled immigrants to remain in the United States, while also pushing for more STEM graduates.

What do the financial and fintech industries think of JD Vance?

Susannah Streeter, Head of Finance and Markets, Hargreaves Lansdown:

“US indices look set to hold on to a wave of positivity that has swept the market. With hopes of multiple US interest rate cuts rising and a triumphant Trump at the Republican National Convention easing immediate concerns about volatility, Wall Street stocks posted further gains.

“There are glimpses of further optimism about the timing of the Federal Reserve’s interest rate cuts, with two or three cuts this year now priced in by financial markets. It comes after an interview with Fed Reserve Chairman Jerome Powell at the Economic Club of Washington. He said the Bank had come closer to cutting interest rates because 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.

“Rising applause greeted Donald Trump at the Republican National Convention when he picked J.D. Vance as his running mate. Vance has gone from a fierce Trump critic to a friend-enemy and now a running mate. He will be popular among rank-and-file Republicans, especially given his backstory, chronicled in his memoir “Hillbilly Elegy,” about his family’s struggles with poverty and addiction. But questions remain about how much he will win over swing voters, especially given his anti-abortion stance.

“However, Trump’s triumphant return to the stage appears to have further raised expectations of a November victory. His company Trump Media and Technology Group Corp jumped 31%. Oil majors such as Exxon Mobil also gained ground, despite the drop in crude prices, given expectations that another Trump presidency would likely emphasize energy independence and continue the increasing pace of drilling permits that took place under the Biden administration.

“Trump has promised to ramp up fossil fuel production 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 moves, given the expansion the industry underwent during his first administration.”

Nigel Green, Chief Executive Officer, deVere Group

“Vance, an outspoken advocate of Bitcoin and other digital currencies, represents a significant and strategic move in the evolving political landscape where cryptocurrencies have become a major issue. This decision is not only smart, but also a potentially transformative masterstroke. This shift has also made cryptocurrencies a hot topic 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 opportunity.

“In selecting Vance, Trump is tapping directly into this zeitgeist, aligning his campaign with the forward-looking 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 in stark contrast to President Biden, whose age and perceived reluctance to fully support the crypto revolution will likely alienate younger voters. The Trump campaign is drawing deep support from crypto industry executives.”

“With over $100 million already pledged, the campaign will have the resources to mount an aggressive, far-reaching campaign. This influx of funds will enable targeted advertising, broad grassroots outreach, and sophisticated digital outreach, all of which are crucial in a competitive election. Trump’s promise to fight what he calls Biden’s restrictive cryptocurrency policies has struck a chord with these deep-pocketed executives. The crypto industry’s financial contributions could prove to be a turning point in the election. By choosing the pro-Bitcoin Vance, Trump is further strengthening that proposition.

“Vance’s support for cryptocurrency also puts him on the right side of history when it comes to innovation and economic freedom. Cryptocurrency represents a radical shift from traditional, centralized financial systems. It offers the promise of greater financial inclusion, lower transaction costs, and greater privacy. Vance’s alignment with these values ​​positions him as a champion of the future, supporting policies that promote technological progress and economic freedom. 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 and promote innovative solutions to contemporary problems. This youthful vigor could be a deciding factor for voters looking for a candidate who represents the future rather than the past. Selecting J.D. Vance as his running mate is a shrewd move by Donald Trump, who is positioning his campaign to capitalize on the growing importance of cryptocurrencies in American society, business, and the financial system. Vance’s pro-crypto stance appeals to younger voters, attracts influential donors, and positions Trump’s campaign on the right side of history when it comes to innovation and economic freedom. In a political landscape increasingly shaped by technological advances and the search for economic alternatives, it would appear that the selection of Vance is a stroke of genius.”

Source