As the 2024 US election approaches, the cryptocurrency industry is intensely examining the positions of the two primary candidates—Donald Trump and Joe Biden—on digital assets. While Biden has historically been critical of cryptocurrencies, recent efforts suggest a shift aimed at garnering support from younger, pro-Bitcoin voters. However, some market observers argue that Biden’s recent overtures are superficial and that his administration may ultimately harm the industry if he is re-elected.
In a detailed post on X, lawyer Scott Johnson analyzed the Biden administration’s actions against crypto over the past four years, highlighting a significant increase in regulatory crackdowns in the past year. Johnson, who has previously worked with Davis Polk and the Barclays Investment Bank, concluded that Biden is poised to dismantle any businesses or developers that hinder his anti-Bitcoin agenda. A primary tool in Biden’s campaign against crypto has been SEC Chair Gary Gensler. According to Johnson, the SEC has aggressively pursued enforcement actions against numerous crypto firms, including Coinbase, Binance, and Kraken, using an excessively broad definition of securities without providing clear regulatory guidance.
SEC’s Iron Hold
Further, the SEC has issued Wells Notices to firms like Consensys, Paxos, and Uniswap Labs, as reported by Crypto News Flash. The agency has also incorporated decentralized finance (DeFi) into its dealer regulations without adhering to the Administrative Procedures Act (APA), raising concerns within the industry about regulatory overreach and lack of transparency.
Other federal agencies have also joined the anti-crypto initiative. The FDIC, Federal Reserve, Treasury, IRS, and the Justice Department have all implemented measures that stymie crypto innovation and adoption. Johnson pointed out that the Treasury Department has inserted provisions into critical legislation without proper congressional debate, broadening the definition of ‘broker.’ The Department of Justice has targeted crypto mixers and arrested developers from Tornado Cash, while Biden has proposed punitive taxes on crypto miners, threatening an industry that has provided thousands of jobs in the US.
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The Office of the Comptroller of the Currency (OCC) has also shifted from its previously crypto-friendly stance under Brian Brooks. The agency has stalled the ‘fair access’ banking rule, which would prevent banks from denying services based on political or ideological grounds, a significant setback for the crypto community.
Despite these actions, insiders claim Biden is warming up to the crypto industry. Sources have indicated that he is seeking advice and guidance from industry players on crypto policy moving forward, a move seen as an attempt to counter Trump’s rising popularity.
With the election just five months away, Biden’s efforts to court the crypto community may be seen as too little, too late. The industry remains skeptical, watching closely to see if his actions align with his rhetoric as the political battle heats up.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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