Biden' Stance on Crypto
Despite Donald Trump recently beginning to accept Bitcoin for his 2024 campaign, he was often critical of cryptocurrencies while he was in office.
Long before the U.S. election season, many crypto holders criticized President Joe Biden, Democratic Party lawmakers, and the officials he appointed as regulators. Though President Biden has rarely made public statements about cryptocurrencies, his stance might be changing as Election Day draws closer.
Since taking office, Biden may have inadvertently propelled crypto into the mainstream of presidential politics. Shortly after 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. crypto users blame Biden for Democratic lawmakers voting against legislation they see as beneficial for digital assets. Senator Elizabeth Warren has been one of the most vocal critics, often linking digital assets to terrorism and illicit activities.
Under Gensler, the SEC increased enforcement actions against crypto firms, with pending cases against Ripple, Coinbase, Kraken, and others. Publicly, Gensler has promoted a "come in and talk to us" approach for crypto projects to legally offer their services, but many companies have criticized the SEC for inconsistent enforcement of securities laws, particularly with reports that it considered labeling Ether (ETH) a security.
In contrast, former President Trump has had a mixed history with crypto. He went from directing his treasury secretary to target Bitcoin in 2018 and calling cryptocurrencies "not money" and "based on thin air" in 2019, to launching a non-fungible token (NFT) collection in December 2022, just weeks after announcing his reelection bid. Trump announced his campaign would accept crypto and aimed to have all remaining Bitcoin mined in the United States.
Reports suggest that Biden might be softening his stance on digital asset legislation and considering accepting Bitcoin donations for his campaign. He also indicated a willingness to work with Congress on an alternative bill to establish a regulatory framework for crypto after opposing the FIT21 Act. Analysts at Pantera Capital noted a shift in the Biden Administration's tone toward the digital asset sector, with his reelection campaign reportedly seeking guidance from blockchain industry players.
Moe Vela, a former adviser to then-Vice President Biden, emphasized the necessity for both Republican and Democratic candidates to clarify their stance on crypto regulation. He suggested that accepting crypto donations could be crucial for appealing to the over 60 million U.S. crypto investors, many of whom are younger voters.
As Biden and Trump prepare for their June 27 debate, the crypto community remains divided. Some voters support Biden for the nonpartisan nature of crypto, while others are concerned about the industry's future under either administration.
Election Day is November 5. Trump's legal troubles continue, with a sentencing date set for July 11, just before the Republican National Convention.
