Well ahead of the upcoming election season in the United States, numerous crypto holders have been vocal in their criticism of President Joe Biden, as well as Democratic Party lawmakers and officials appointed by him to regulate the industry. Despite President Biden rarely addressing crypto publicly, his stance on the matter may be shifting as the election draws nearer.
Since assuming office, President Biden has inadvertently brought crypto more into the mainstream discussion within presidential politics. Shortly after his inauguration, he nominated Gary Gensler to head the U.S. Securities and Exchange Commission (SEC). By March 2022, he had signed an executive order to establish a regulatory framework for digital assets. In 2024, the President made headlines by vetoing a resolution aimed at overturning an SEC accounting rule concerning banks and crypto.
Many crypto users in the U.S. have placed blame on President Biden for Democratic lawmakers in his party voting against favorable legislation and policies for digital assets. Democratic Senator Elizabeth Warren has been particularly vocal in her opposition to crypto, often linking digital assets to the financing of terrorism and illicit activities.
Under Gensler’s leadership, the SEC has increased enforcement actions against crypto companies, with ongoing cases against Ripple, Coinbase, Kraken, and others. Gensler has publicly advocated for crypto projects to engage with the SEC to ensure legal compliance in offering their products and services in the U.S. However, there have been criticisms of the regulator for inconsistent enforcement of securities laws, especially with recent reports suggesting the SEC’s consideration of labeling Ether as a security.
Contrastingly, former President Trump has had a tumultuous relationship with crypto, ranging from instructing his Treasury Secretary to target Bitcoin in 2018 to later dismissing cryptocurrencies as “not money” and being “based on thin air” in 2019. Following his departure from office in January 2021, Trump went so far as to call Bitcoin a potential scam and cryptocurrencies a disaster in the making.
It wasn’t until December 2022 that Trump appeared more open to embracing digital assets, launching an NFT collection shortly after announcing his reelection bid for the U.S. presidency in November 2022. Despite facing competition from other pro-crypto Republican candidates in 2023 and 2024, Trump emerged victorious and declared that his campaign would accept crypto donations, along with plans to ensure the remaining Bitcoin in the U.S. is mined domestically.
With Trump’s fluctuating stance on crypto and other issues, doubts have arisen about the potential impact of his reelection on digital assets. Reports have suggested that President Biden may be exploring ways to appeal to crypto voters by softening his position on digital asset legislation, accepting campaign contributions in Bitcoin, and shaping related policies at the SEC.
Following President Biden’s declaration of vetoing an SEC rule pertaining to banks handling crypto, the White House hinted that a similar stance would not be taken on the Financial Innovation and Technology for the 21st Century (FIT21) Act. Despite his opposition to the digital asset legislation, President Biden expressed willingness to collaborate with Congress on an alternative bill to establish a regulatory framework for crypto. The House vote saw 71 Democratic lawmakers joining forces with a majority of Republicans to pass FIT21.
Analysts at Pantera Capital noted the shifting tone of the Biden Administration towards the digital asset sector, highlighting reports of Biden’s reelection campaign engaging with blockchain industry players for insights on future crypto policy. Former adviser Moe Vela emphasized the necessity for both Republican and Democratic candidates to address the impact of the crypto industry, indicating that accepting donations in digital assets would be a crucial step to appeal to a significant segment of potential voters.
As the candidates gear up for a presidential debate on June 27 and a subsequent debate on September 10, the crypto industry’s influence on the 2024 election is becoming increasingly apparent. While Trump enjoys support from various crypto industry figures, some voters backing President Biden emphasize the nonpartisan nature of crypto rather than specific policies, pointing to Trump’s legal issues as a deterrent. Concerns about the future of the crypto ecosystem in the U.S. are also expressed by individuals outside the country who are unable to vote.
The U.S. Election Day is set for November 5, with Trump facing sentencing in New York on July 11, shortly before the Republican National Convention nominates the party’s presidential candidate. Despite Trump’s legal troubles, the impact of crypto voters on the 2024 election is undeniable and poised to continue shaping the political landscape.