This November, the United States will elect its president for the next four years. While crypto assets were not mentioned at all in the last election cycle, the most popular candidates Trump and Biden are now campaigning for this voter base.
The regulatory status of crypto assets has long been controversial in the US. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are fighting over who has oversight. Many in the industry point to former MIT professor Gary Gensler, whom the Biden administration has nominated to chair the SEC in 2021, as the chief initiator of this regulatory uncertainty. However, other Democratic Party initiatives have also caused discontent among crypto advocates. In recent weeks, rival presidential candidate Donald Trump has cleverly used this for his own campaign. Trump has put enough pressure on the Biden administration to radically rethink its position on the crypto industry. The issue is now a top priority.
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Trump rallies crypto supporters behind him
Four years ago, Trump declared that only the US dollar was real money and that he did not trust bitcoin. Today, the Republican candidate sees things differently. As president, he would protect crypto self-governance and stop Biden's crusade to destroy crypto companies, Trump said in a speech at the Libertarian Party convention. He also promised to ban the introduction of a central bank digital currency (CBDC), which many crypto enthusiasts see as a dystopian step toward total surveillance.
"I will also stop Joe Biden's crusade to destroy crypto. We will stop him. I will make sure that the future of cryptocurrency and the future of bitcoin happens in the United States, not overseas. I will support self-custody. To the 50 million crypto owners in the nation, I say: With your vote, I will keep Elizabeth Warren and her cronies away from your bitcoins, and I will never allow the creation of a central bank digital currency." - Donald Trump, Republican presidential candidate
The motivation behind the crypto push is obvious. Estimates suggest that between 10-20% of the U.S. population has already had some exposure to cryptocurrencies and blockchain technology. Of these people, a significant number are likely to hold a significant portion of their wealth in cryptocurrencies. Winning over these influential single-issue voters is a smart move.
Biden administration must respond
The dissatisfaction with the current administration's stance has become overwhelming in recent weeks, even recognized by members of its own party. The House of Representatives passed a crypto bill by a bipartisan margin of 279 to 136, stripping the SEC of its authority. For the first time, party lines were broken on a crypto proposal. Continuing in the same direction would have alienated too many potential voters. This signal was ultimately so decisive that the SEC decided to approve spot Ether ETFs within days. Rumor has it that the order came from the very top of the Biden administration.
Another indication of the radical shift within the Democratic Party comes from the current president's campaign organization. Several crypto companies have reportedly been contacted by the Biden re-election campaign for advice, insiders told crypto portal The Block. The president needs guidance on the crypto community and future policies for the industry. The first contacts came directly after a Trump speech in which he called for changes in crypto regulation.
