In the United States, politicians often exploit trending issues to divert attention from unfavorable media coverage, especially during election years. Cryptocurrency has emerged as one such tool, with some U.S. lawmakers using it to shift focus from potentially damaging information as election day approaches.
For many Republicans, this might involve publicly opposing a central bank digital currency (CBDC) or equating cryptocurrencies like Bitcoin (BTC) with financial liberty. Conversely, some Democrats may link crypto transactions to terrorism financing or, in a break from party norms, voice support for digital assets.
### Matt Gaetz
On June 18, the U.S. House of Representatives Committee on Ethics announced an investigation into Florida Representative Matt Gaetz for alleged obstruction related to claims of sexual misconduct and illicit drug use. Gaetz, who has supported crypto regulation legislation like the Financial Innovation and Technology for the 21st Century (FIT21) Act, has seldom made digital assets a central public issue in his political stance.
However, on June 25, Gaetz introduced a bill that would require the Internal Revenue Service (IRS) to accept Bitcoin payments for federal income taxes. He stated that his visit to the inauguration of El Salvador President Nayib Bukele inspired this legislation, aiming to modernize the U.S. tax system.
Gaetz is running for reelection in 2024, facing Republican Aaron Dimmock in an August primary and potentially Democrat Gay Valimont in the general election. Neither Dimmock nor Valimont had taken strong stances on cryptocurrency at the time of publication.
### Donald Trump
In 2022, former President Donald Trump began to soften his stance on cryptocurrencies and blockchain, which he had previously criticized while in office. Following the announcement of his reelection campaign, Trump launched a non-fungible token (NFT) collection. In 2023, as he contended with various criminal and civil lawsuits, Trump increasingly incorporated cryptocurrency into his campaign narrative.
Facing legal challenges, including a jury convicting him on 34 felony counts related to falsifying business records, Trump announced his campaign would accept crypto contributions. After his conviction, Trump further emphasized his pro-crypto stance, pledging to have all BTC mined in the U.S. if reelected, criticizing President Joe Biden’s crypto policies, and considering speaking at the Bitcoin 2024 conference in Nashville.
### Joe Biden
Current U.S. President Joe Biden may also be employing cryptocurrency to manage public perception. Although it was unclear at the time whether his reelection campaign would accept crypto donations, Biden reportedly attended a roundtable discussion with congressional leaders on digital assets and may be reevaluating his strategy in response to Trump’s crypto-centric moves.
Biden has faced scrutiny over his support for Israel, actions in Gaza, U.S. involvement in Ukraine, and domestic issues like abortion rights, fair elections, inflation, and immigration. Publicly endorsing digital assets would mark a significant shift for Biden, who has previously vetoed a resolution overturning an SEC rule on crypto in banking and criticized the environmental impact of digital assets.
Much of the criticism directed at Biden’s administration focuses on SEC Chair Gary Gensler and Senator Elizabeth Warren. Warren has been vocal against crypto, associating it with illicit finance, while Gensler’s tenure since 2021 has seen numerous enforcement actions against crypto firms.
### Conclusion
Cryptocurrency is increasingly becoming a strategic tool in U.S. politics, with lawmakers leveraging it to influence voter perception and address or divert attention from contentious issues. As the 2024 election approaches, the role of digital assets in political campaigns is likely to grow, reflecting broader societal debates about the future of finance and technology.