Cryptocurrency regulation has so far seen open hostility from the Biden administration, while Trump promises significant openness towards this world. Let’s take a detailed look at the positions of the two contenders.
Biden on Cryptocurrencies
The sitting president has been rather quiet on cryptocurrencies, and some influential figures like Mark Cuban, Pantera Capital, Uniswap, and others have urged him to rethink his approach.
A significant part of the criticism stems from the appointment of Gary Gensler as chairman of the U.S. Securities and Exchange Commission (SEC). So far, Gensler has initiated numerous lawsuits and enforcement actions in the cryptocurrency sector.
Moreover, his determination to classify tokens such as Ripple (XRP), Uniswap (UNI), and others as securities has led many to blame him for the stifling of the domestic crypto industry in the United States. Ironically, the SEC approved Bitcoin (BTC) exchange-traded funds (ETFs) this year.
Unfortunately, it’s not just Gensler’s appointment that has drawn the ire of the crypto community. After the pro-crypto bipartisan bill, the Financial Innovation and Technology Act of 2021 (FIT21), passed the House of Representatives, Biden criticized the bill.
Arguing it “lacked sufficient protections for consumers,” the president has nonetheless expressed a willingness to work with Congress to develop appropriate legislation for the digital asset space. Now, Biden appears eager to capture the crypto vote and may begin accepting crypto donations through a partnership with Coinbase.
Skepticism towards the Democratic Party’s intentions with crypto runs so deep that experts have started to theorize whether the approval of the Ethereum (ETH) ETF was purely political. This could further cement the conviction of crypto voters who were already leaning towards Trump.
Trump on Cryptocurrencies
Trump’s shift in stance on cryptocurrencies has been quite a spectacle. The presidential candidate has significantly changed his tune on Bitcoin and crypto and seems to be winning over the crypto vote.
Trump has even launched his own non-fungible token (NFT) collection. Regardless of whether or not the project was successful, it caught mainstream attention and was widely commented on by major creators on YouTube.
According to recent surveys, Trump is the favorite among cryptocurrency owners, and this is from a rather small sample size of 1,000 voters, 7% of whom owned more than $1,000 in crypto. Other polling data shows that about a third of voters consider crypto to be an issue, with half stating they do not trust candidates who interfere with crypto.
Among his many crypto-related promises, Trump is making several pledges along the campaign trail. He has not only pledged to significantly boost the U.S. Bitcoin mining sector and describe BTC as “the last line of defense” against foreign adversaries, but he has also personally vowed to “end Joe Biden’s war on crypto.”
Cryptocurrencies as an Electoral Issue
Cryptocurrencies are increasingly an electoral issue for Americans, with about 40% of the adult population now owning crypto. But whether or not it can change the outcome of an election remains to be seen.
Industry titans are also weighing in on the election. Recently, Ripple (XRP) CEO Brad Garlinghouse suggested that pro-crypto candidates will score more votes. He suggested once again that clearer regulations around “one of the U.S.’s fastest-growing industries” would have no downside.
Arguably, as long as Gensler remains as SEC chair, which he may do if Biden is reelected, crypto regulations may continue to move in the same slow direction. Should the sweeping, pro-crypto FIT21 bill receive backing from the current president, it could swing crypto votes in the Democrats’ direction.
That said, it could be too little too late as Trump continues to court the markets and sector throughout his campaign.
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