- President Joe Biden’s re-election campaign has engaged with cryptocurrency industry players, seeking advice on crypto policy
- Sources have indicated that these early-stage discussions are at a sensitive point
- This outreach has signified a notable shift from Biden’s previously cautious stance towards the cryptocurrency industry
President Joe Biden’s re-election campaign has begun engaging with cryptocurrency industry players, seeking advice on “crypto community and crypto policy moving forward,” according to The Block. The outlet cited sources with direct knowledge of the matter, who spoke on the condition of anonymity, as saying that the discussions are still in their early stages and are at a sensitive point. If true, this outreach signifies a notable shift from Biden’s previous cautious stance towards the industry, although it could be too little too late when it comes to influencing the community to which they want to appeal.
Biden Administration Wants to Engage
The engagement effort, which The Block commenced approximately two weeks ago, reflects the Biden camp’s growing recognition of the importance of crypto-related issues in what is expected to be a tightly contested presidential race. As part of this outreach, the re-election team has contacted several crypto experts, including some who had been previously dismissed by the administration, as one source noted:
The Biden campaign has acknowledged the influence of cryptocurrency on the political landscape and is making efforts to understand and engage with the community more effectively.
The campaign’s decision to connect with digital assets experts comes shortly after crypto advocates vehemently opposed the Biden administration’s plan to veto the repeal of SAB 121. This controversial legislative measure has been criticized for potentially discouraging financial institutions from offering crypto asset custody services, but in a refusal of another bill, FIT21, the administration noted that it was willing to collaborate with Congress on “developing legislation for digital assets.”
Democrats have shown themselves to be the anti-crypto party in recent years, with Brad Sherman and Elizabeth Warren their most vehement campaigners, and many feel that this attempt to turn the oil tanker so late in the day is predicated just on an election victory.
Republicans Ahead in the Crypto Stakes
The contrast to the Republican campaign couldn’t be starker. Republican lawmakers have by and large been positive about the potential benefits of digital assets, and on May 21 the Trump campaign announced it would accept cryptocurrency donations. This was followed by Trump himself making pro-crypto and anti-CBDC (Central Bank Digital Currency) remarks at the 2024 Libertarian National Convention.
While Trump’s crypto support is almost certainly fraudulent an an attempt to capitalize on the unpopularity of the approach from Biden’s team, it has nevertheless garnered support from many in the crypto space, who view the value of their holdings as more important than the potential damage caused by a second Trump presidency.
The Biden administration now faces the challenge of shaking off its previously anti-crypto image in a way that seems genuine and not just a vote-catcher, something that few are going to fall for. The odds of getting any meaningful legislation through the door prior to the election in November are slim to none, and if the tide turns against them then the Democrats will only have themselves to blame as far as the crypto vote goes.
