Crypto Advocates Warn of New Digital Divide as Regulators Begin Inquiries

Investing in cryptocurrencies can offer equal opportunities to groups of people who historically have experienced discrimination in their efforts to access legacy banking systems. Banks and regulators must launch more digital asset outreach and education to avoid creating a new digital divide between those who can access the cryptocurrency market — estimated by the White House at $3 trillion — and those who cannot, advocates say.

"They can't claim to want to be inclusive if they're not talking to inclusive groups of people," said Cleve Mesidor, a former Obama-era official in the Commerce Department and a policy adviser with The Blockchain Association. "Why pretend that crypto can be revolutionary if we're not going to be revolutionary as we're building this new economy?"

Sealey and Mesidor are part of a growing number of people of color who are turning away from legacy investment tools to embrace cryptocurrencies, non-fungible tokens and other decentralized entities. One-quarter of Black Americans, or 25%, own cryptocurrency, according to the 2022 Ariel-Schwab Black Investor Survey from asset manager Ariel Investments LLC and financial services giant Charles Schwab. This compares to 15% of white investors who own cryptocurrency.

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