Prior to the election season in the United States, President Joe Biden, Democratic Party lawmakers, and administration officials were criticized by many cryptocurrency holders. With the approach of Election Day, the U.S. President, who has rarely made public statements on crypto, may be shifting his stance.
Since taking office, President Biden has played a role in bringing cryptocurrency into the mainstream political conversation. Following his inauguration, he nominated Gary Gensler as chair of the U.S. Securities and Exchange Commission (SEC). In March 2022, he signed an executive order to establish a regulatory framework for digital assets. In 2024, he vetoed a resolution to overturn an SEC accounting rule on banks and crypto.
Many U.S.-based cryptocurrency users have held President Biden accountable for Democratic lawmakers voting against legislation and policies that were seen as beneficial for digital assets. Democratic Senator Elizabeth Warren has been a prominent voice in Congress opposing cryptocurrency, often associating digital assets with the financing of terrorism and illicit activities.
Under Gensler’s leadership, the SEC has intensified enforcement actions against cryptocurrency firms, with cases pending against Ripple, Coinbase, Kraken, and others. The SEC chair has publicly stated that the best approach for cryptocurrency projects to legally offer their products and services in the United States is to “come in and talk to us.” However, many companies have criticized the regulator for inconsistent enforcement of securities laws.
In contrast, former President Donald Trump’s stance on cryptocurrency has been mercurial. He initially instructed his Treasury Secretary to “go after” Bitcoin in 2018, then called cryptocurrencies “not money” and “based on thin air” in 2019. After leaving office, Trump expressed negative views about Bitcoin and cryptocurrencies, but in December 2022, he seemed more open to embracing digital assets. He launched a non-fungible token (NFT) collection after announcing his reelection bid in 2022.
There are reports suggesting that President Biden may soften his position on digital asset legislation, accept campaign donations in Bitcoin, and influence related policy at the SEC in an effort to appeal to cryptocurrency voters. The Biden Administration has hinted at this shift in tone and expressed eagerness to work with Congress to establish a regulatory framework for crypto.
The upcoming presidential election in the United States has prompted many in the cryptocurrency industry to consider the impact of the candidates’ regulatory environment on digital assets. Some believe that both candidates must acknowledge the influence of the crypto industry and accept donations in digital assets to appeal to potential voters in the space.
With less than seven days to prepare for a presidential debate, President Biden and Trump are gearing up to face each other in person for the first time since 2020. Trump has garnered support from many in the crypto industry, while some supporters of President Biden emphasize the nonpartisan nature of cryptocurrency. There are also concerns about the future of the ecosystem in the United States from those outside the country.
Election Day in the United States is set for November 5, with Trump’s sentencing in New York scheduled for July 11, just days before the Republican National Convention nominates the party’s presidential candidate. The former U.S. President has faced legal troubles, which have become a point of contention in the election.