Is Biden Accepting Crypto Donations?
The campaign for United States (US) President Joe Biden is in talks with players in the cryptocurrency industry about the possibility of accepting crypto donations through Coinbase Commerce, sources familiar with the matter disclosed.
This move appears to mirror the strategy of the Trump campaign, which has already begun accepting Bitcoin and other cryptocurrency donations.
Coinbase Commerce, a payment service that enables merchants to accept a variety of cryptocurrencies, is currently facilitating crypto donations to the presumptive Republican candidate, Donald Trump.
His campaign started accepting digital currency contributions last month.
These discussions are part of the Biden campaign's latest efforts to engage with crypto-focused voters as it prepares for an election that is expected to be highly competitive, according to sources who requested anonymity due to the sensitivity of the discussions.
One source, who works with politicians and crypto industry leaders, expressed:
“They're paying attention to issues around crypto and are trying to find quick wins to show that they're supportive of the industry. They want] to show that they're not the enemy.”
The campaign may also be looking to strengthen its financial position by attracting donations from well-funded pro-crypto supporters.
As of now, the Biden campaign has not made an official statement on the matter.
However, sources close to the situation have reportedly said that this potential move is part of a broader strategy to appeal to crypto-focused voters and tap into a potential funding source from pro-crypto donors.
One source close to the matter iterated:
“People in [Biden's] outer inner circle are now specifically telling the Biden team, 'if you're quiet on this crypto thing and you don't get up to speed, you could lose the election.”
The Biden campaign's interest in engaging with the crypto community has gained traction in recent weeks, likely in response to the pro-crypto stance taken by his political rival, former President Trump.
Since then, the campaign has intensified its efforts to refine its crypto messaging, according to various sources.
This is particularly relevant after President Biden faced criticism for vetoing a bipartisan effort to repeal SAB 121, a legislative measure that critics argue has hindered the growth of the crypto industry in the US.
Biden's Anti-Crypto Stance Softening?
During an interview this Thursday on CNBC, Kraken CEO Dave Ripley characterised the Biden Administration's stance toward crypto as "softening."
Ripley said in the interview with CNBC "Squawk Box" host Joe Kernan:
"When we came into this year, the executive branch has been, via the SEC, strongly negative to cryptocurrencies. But, there have been many supporters throughout the U.S. government. I visit D.C. periodically and met with many people in Congress, the Senate, and there are a number of supporters there. And I think over the past several, I don't know, maybe two months or so, we've seen kind of strong support — and now bipartisan support as well."
He pointed to the passage of the Financial Innovation and Technology for the 21st Century Act, also known as FIT21, which seeks to establish a comprehensive regulatory framework for the cryptocurrency industry.
The bill was approved with a significant majority, passing 279-136 on 22 May.
He added regarding the bill's overwhelming passage:
"We didn't expect it to be that successful. It was really successful. I think it was 71 from the Democrat side as well. So, you know, we've kind have seen a little bit of softening up on the executive branch."
Ripley also mentioned former President Trump's recent embrace of cryptocurrency, suggesting that this shift aligns with a potential educational "journey" undertaken by the presumptive Republican nominee.
He explained:
"Everyone goes on a journey with bitcoin and cryptocurrency. I did myself. And you know his comments on bitcoin and cryptocurrency are recent, so I would hope that he's kind of on that learning journey. When individuals actually take the time to learn about Bitcoin and cryptocurrency, it's almost always a positive outcome."
Biden Administration to Join Key Bitcoin & Crypto Roundtable in Washington This July
In July, a significant roundtable on Bitcoin and cryptocurrencies will take place in Washington, D.C., with representatives from the Biden Administration and Congressman Ro Khanna's office in attendance.
This event underscores the increasing importance of digital asset regulation and innovation.
Industry leaders, advocates, and key policymakers will convene to discuss the future of digital assets in the US at this high-profile gathering.
Khanna's office has described the planned event as the most significant meeting between policymakers and blockchain innovation leaders to date.
Participants from the Senate, House of Representatives, and the Biden administration, along with businessman Mark Cuban, are expected to engage in discussions about legal frameworks, the economic implications of cryptocurrency assets, and strategies to foster innovation while ensuring consumer protection.
The involvement of the Biden Administration indicates a federal recognition of the need for clear and comprehensive cryptocurrency regulations.
This participation is surprising to the cryptocurrency community, given President Biden's historical opposition to digital assets.
Over the past four years, the administration has taken an antagonistic stance toward Bitcoin and the digital asset industry.
According to unnamed sources, the discussion is part of the Biden administration's latest efforts to explore strategies for appealing to crypto-interested voters, like Trump, ahead of the upcoming elections.
As digital assets become a prominent topic in this year's elections, both candidates appear to be vying for the support of the growing industry.
Biden Faces Hurdles in Gaining Crypto Donors
The cryptocurrency community remains sceptical about President Biden's capacity to draw in pro-crypto supporters.
Nic Carter, a partner at Castle Island Ventures, pointed out several unfavourable policy decisions and enforcement actions taken by the Biden administration.
These actions include pressuring banks to cut off relationships with cryptocurrency clients, initiating legal actions against major cryptocurrency exchanges, and imposing regulatory burdens on Bitcoin miners and stablecoin initiatives.
Carter also criticised the administration for failing to provide clear guidance on securities regulations while inconsistently enforcing them.
This has effectively made decentralised finance (DeFi) projects nearly illegal in the US and introduced legal risks for participants in decentralised autonomous organisations (DAOs).
Given this history, Carter questioned the boldness of anticipating cryptocurrency donations for the Biden campaign.
Adding to the tension, cryptocurrency magnates Cameron and Tyler Winklevoss have each contributed $1 million in Bitcoin to Trump's campaign and have committed to voting for the former president in November.
They accused Joe Biden of having "openly declared war against crypto."
Cameron Winklevoss declared on X that Trump is "pro-Bitcoin, pro-crypto, pro-business":
“And he will put an end to the Biden Administration's war on crypto.”
Tyler Winklevoss further published a detailed critique of Biden's cryptocurrency policies.
He alleged that the Biden administration has employed its regulatory bodies to suppress the crypto industry, an action he described as having "polluted the mission and corrupted the integrity of these agencies."
Too Little Too Late for Biden?
Against the backdrop of the upcoming election, former President Trump, has made a deliberate appeal to cryptocurrency voters as part of his campaign strategy.
Trump has seemingly recognised the cryptocurrency community as a financially influential political force and has been actively courting their favour.
While some sceptics argue that his interest in cryptocurrency is primarily driven by his personal investments (Trump has released several NFT series and holds a significant amount of ETH and other tokens), this might not entirely be the case.
Trump has embraced cryptocurrency as a divisive issue to contrast with his rival, President Biden.
A notable percentage of registered voters hold cryptocurrencies and view them positively.
In fact, nearly 25% of self-identified independent voters—a crucial swing voter demographic—have invested in cryptocurrency: this number is expected to grow, especially with the introduction of cryptocurrency ETFs.
On the flip side, the simplest solution for Biden would be to either reverse his stance on cryptocurrency or reduce its significance as an issue.
However, this is all speculative, as there is no concrete evidence that Biden is changing his approach.
With the November election approaching, it may be too late for Biden to join the "I love crypto" movement, even if his stance has genuinely softened.
XingChi
