Crypto Policies Key battleground in Upcoming Biden-Trump Election Showdown
Summary:
As election season nears in the U.S., the crypto policies and positions of President Joe Biden and former President Donald Trump are under scrutiny from the ever-growing crypto community. While Biden initially received criticism due to perceived anti-crypto decisions, recent actions suggest a softening stance. Conversely, Trump's fluctuating views on crypto have been put in the spotlight after he announced his re-election bid and acceptance of crypto donations. Crypto policy appears set to become a significant factor in the forthcoming election, with both candidates keen to capture the votes of the substantial crypto-investor demographic.
Even before the election period began in the United States, numerous crypto enthusiasts were raising concerns about President Joe Biden, Democratic Party lawmakers, and his choice of officials to serve as regulatory watch-dogs under his administration. However, his aloof stance on crypto might soon change as the election season closes in. Whether it's beneficial or harmful, President Biden has inadvertently pushed the importance of crypto into the bright lights of mainstream presidential politics. Shortly after his assumption of office, he proposed Gary Gensler as the chairperson for the U.S. Securities and Exchange Commission (SEC). It was under his administration that an executive order for the development of a regulatory framework for digital assets was established in March 2022. Similarly, he protected an SEC accounting rule related to banks and crypto from being set aside in 2024.
Many crypto users within the United States, however, seem to hold President Biden accountable for his party members voting against legislation and policies they deem beneficial to digital assets. Known for her vocal opposition against crypto, Democratic Senator Elizabeth Warren often associates digital currencies with illegal activities and terrorism. The SEC, under Gensler, has increased its enforcement actions on crypto firms, leading to ongoing lawsuits against companies such as Ripple, Coinbase, Kraken, among others. Gensler has suggested that crypto projects should communicate directly with them to offer their services and products legally within the U.S., but others have criticised this approach for the inconsistent enforcement of securities laws. Controversially, the SEC considered deciphering Ether as a security.
Unlike Biden, Trump jumped from urging his Treasury Secretary, Steve Mnuchin, to target Bitcoin in 2018 to dismissing cryptocurrencies as fraudulent and baseless in 2019. However, in December 2022, after stepping down from office, his attitude towards digital assets softened as he released a series of non-fungible tokens (NFTs) weeks before announcing his intention to run for president again. As a candidate again in 2023 and 2024, he acknowledged crypto donations and emphasized the importance of mining Bitcoin locally.
Trump's inconsistent stance on digital assets has raised questions about the impact this may have on the crypto industry. Reports suggest that President Biden might be changing his initial stance on crypto regulations to accommodate more crypto users by accepting Bitcoin donations and amending policies at the SEC under his administration.
While Biden stated that he would turn down an SEC rule on banks managing crypto, the White House hinted that he might not do the same with the FIT21 Act. Biden has expressed his desire to collaborate with Congress to develop an alternate bill that provides a regulatory framework for the crypto market. Seventy-one Democratic members gravitated towards the majority of Republicans to pass FIT21.
Analysts at Pantera Capital stated that the Biden administration may be changing its earlier stand on the digital assets sector. Biden's re-election campaign has reportedly begun seeking out blockchain industry players to assist with formulating new crypto policies.
According to former advisor to Vice President Biden, Moe Vela, it's important than both Republican and Democratic candidates adopt a clear stance on the future of the regulatory landscape for crypto investments under their administrations. Vela indicated that both candidates couldn't ignore the influences of the crypto industry and should consider accepting campaign donations in digital asset formats.
With less than a week remaining, Trump and Biden are scheduled to square off in their first in-person debate since 2020. It is scheduled for June 27, and a second one will be on Sept. 10. Numerous industry leaders, including the co-founders of Gemini, Cameron and Tyler Winklevoss, and major mining executives, seem to already be rooting for Trump. However, Biden supporters tout crypto’s nonpartisan nature or bring up Trump’s legal troubles as reasons to support the present president.
The U.S. Elections will be held on November 5. Shortly before the Republican National Convention selects its presidential candidate, Trump will stand trial in New York for charges related to sexual assault and business fraud on July 11. The outcome of the 2024 election could alter the trajectory of crypto investments and blockchain technology.
Published At
6/21/2024 10:24:30 PM
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