People flocked to the 54th Congressional Black Caucus Foundation (CBCF) Annual Legislative Conference (ALC) from Sept. 24-28 at the Walter E. Washington Convention Center in Northwest D.C., to not only talk policy but also business.
From forums to panels and the vendors in the exhibit hall, there was much at the ALC uplifting Black businesses, and highlighting two popular topics: cryptocurrency and entrepreneurship.
“We are here to demystify a lot of this,” said Kevin Harris, the owner of Crypto.com, who participated in the panel “Beyond the Bank: Digital Assets in Black America” on Sept. 24. “There is a lot of interest in cryptocurrency in the Black community. We are here to educate you on how to respond and engage with the Black community on this digital currency.”
Harris is a proponent of cryptocurrency, a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography rather than by a centralized authority. An Ariel Investments and Charles Schwab survey in 2022 revealed that 25% of Black people owned cryptocurrency, compared to 15% of white Americans.
Many speakers emphasized entrepreneurship as a means of economic mobility for the Black community, promoting passing on generational wealth and financial independence.
John Hope Bryant, founder, chair and CEO of Operation HOPE, told a brain trust at the “Closing the Wealth Gap Working Group” on Sept. 26 that a controversial figure in the Black community may be a model for business.
“Drug dealers understand the gamut of business,” Bryant said to some who raised their eyebrows. “As a gang leader, they are a frustrated union organizer. They understand marketing, distribution, finance, organizational structure, and legal issues.”
While he noted drug dealers and gangs are a misguided example of entrepreneurship, Bryant said they are an example of “I can’t go get a job so I will create one.”
Cryptocurrency Steps Into Black Financial Conversations
Cleve Mesidor, a former congressional staffer who serves as the executive director of the Blockchain Foundation, a nonprofit dedicated to promoting cryptocurrency, joined Harris at the “Beyond the Bank Forum.”
Mesidor said Black people are not strangers to cryptocurrency.
“I think if you would talk to a number of your relatives and friends, you will find out they are engaged in crypto,” she said.
Mesidor said it was time for Black people to look aside the normal financing system for their needs, and cryptocurrency can do that.
“Traditional financing consists of borrowing, lending and trading,” she said. “What cryptocurrency does is streamlines the process for people. To get your money, you have fewer intermediaries to deal with.”
Mesidor is an advocate for stablecoins, a cryptocurrency backed by U.S. dollars. She said stablecoin has been in the planning stages in the finance industry for quite some time.
“The U.S. has looked at the digital dollar for a long time,” Mesidor said. “It really became known during the pandemic, when people could not physically go to their financial institution to cash their check and had to utilize direct deposit. That is not the case with stablecoin, the money goes into a digital wallet. Stablecoins are the pathway to the future.”
Harris said stablecoins are good “because you get paid (as a vendor) immediately instead of waiting 3-4 days for payment.” However, he said it is not good enough for Black people to be consumers of cryptocurrency.
“We want to be owners in this space,” he said. “This is the time for Blacks to get involved and not be left behind, like it has been with other industries in the past.”
Celebrating Entrepreneurship at the Annual Legislative Conference
Many people came to the annual conference with heavy concerns on their mind due to the Trump administration laying off federal workers and some of the largest corporations backing away from diversity, equity and inclusion (DEI) initiatives.
Bryant said the best strategy for Black Americans is not to become despondent and consider entrepreneurship.
He said the Black community’s economic stance would change with one adjustment.
“If we could raise the credit score of Black Americans who are at 620 or below by 100 points, we could change the community,” Bryant said. “You can’t get a decent auto loan at 620, you won’t get a home loan at 620 and a small business loan at 620 is not good. You need at least a 700-credit score.”
Similarly to Bryant, Marshawn Wolley, CEO of Black Onyx Management, a management consulting firm in Indianapolis, Indiana, said that a credible credit score is needed to build a business, but emphasized that a good understanding of the underwriting process of getting a loan is also key.
“I tell my clients to build business credit and keep it separate from your personal credit,” he said. “If you want to open a business, find a problem and solve it. Make sure your business matters, such as taxes, organizational structures are solid and taken care of.”
