Over the past four years, President Joe Biden has demonstrated a clear reluctance to support the bitcoin and cryptocurrency industry, as evidenced recently by his veto of major legislation and his administration's broader stance. On May 31, Biden vetoed a critical bill that would have allowed highly trusted financial institutions to custody bitcoin and other cryptocurrencies.
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BREAKING: President Biden vetoes bill that would allow custody of highly regulated financial companies twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin and cryptography. pic.twitter.com/TMHavdWRx7
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1796676018284953832?ref_src=twsrc%5Etfw”>May 31, 2024
The legislation in question had garnered bipartisan support in both the House and Senate. Its goal was to provide a regulatory framework that would allow banks and other financial entities to securely hold digital assets, thus further integrating bitcoin into the mainstream financial system. Proponents of the bill argued that such a framework would improve the security of spot bitcoin ETF funds by distributing the honeypot of coins currently held by only a couple of institutions, promote innovation, and help facilitate the growth of the bitcoin industry. However, Biden's veto reflects his administration's lack of support for the industry, where the president x.com/BitcoinMagazine/status/1660267711199424512″>previously compared cryptocurrency traders to “rich tax evaders.”
The Biden administration too x.com/BitcoinMagazine/status/1638376871510396929″>published a report attacking bitcoin and proof-of-work mining, promoting a central bank digital currency (CBDC) instead, stating that “a US CBDC would have the potential to deliver significant benefits.” The fact that Biden wants to adopt a CBDC, which would allow the federal government to have full control over the finances of its citizens, further shows his true colors and reasoning for not supporting bitcoin.
Recently, Joe Biden's Department of Justice arrested the founders of the popular privacy-focused bitcoin mixing service, Samourai Wallet, and charged them with money laundering. US Senator Cynthia Lummis x.com/BitcoinMagazine/status/1785699036718153968″>defended Samourai's founders, stating that “this stance contradicts existing Treasury guidance, common sense and violates the rule of law.” Renowned whistleblower Edward Snowden also commented on the arrest:
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NEW: Edward Snowden on US Justice Department arrest twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin Samourai Wallet mixing service founders and CEO pic.twitter.com/qmigHJzmZU
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1783247761917239343?ref_src=twsrc%5Etfw”>April 24, 2024
Additionally, the broader Democratic Party has also shown reluctance to support pro-bitcoin legislation. Key figures such as Senator Elizabeth Warren have particularly expressed their opposition to the crypto industry. Warren has often criticized cryptocurrencies for their environmental impact and regulatory challenges, and infamously stated that she is “building an anti-cryptocurrency army” to address what she perceives as the industry's threats to financial stability and consumer protection.
In stark contrast, former President Donald Trump recently embraced bitcoin and cryptocurrencies. On June 1, 2024, Trump announced that his campaign would accept bitcoin payments through the Lightning Network, facilitated by OpenNode, a bitcoin and Lightning Network infrastructure provider. Trump has recently said that he will “make sure the future of cryptocurrencies and bitcoin is made in the US… I will support the right to self-custody for the country's 50 million cryptocurrency holders.” Trump also recently stated that he is “very positive and open-minded toward crypto companies” and that “Our country should be the leader in this field.” “There is no second place.”
Despite Democrats' stance, the bitcoin industry is becoming an increasingly influential force in American politics. Recent polls indicate that crypto voters are largely nonpartisan, with no significant lean toward the Republican or Democratic party. This demographic represents a substantial and growing portion of the electorate, with more than 50 million bitcoin and cryptocurrency holders in the United States. As the 2024 presidential election approaches, bitcoin policy is becoming a critical issue for candidates to address.
The changing stance of political leaders on bitcoin and cryptocurrencies underscores the growing importance of these assets in shaping economic and regulatory policies. For Biden, his reluctance to embrace bitcoin is alienating an important segment of the voting base. Cryptocurrency advocates argue that clear regulatory frameworks and widespread acceptance of bitcoin would boost economic growth, foster innovation, and improve financial inclusion. However, the Biden administration's focus remains on preventing that from happening.
The rise of bitcoin has introduced new dynamics to the political landscape. While bitcoin operates on a non-partisan basis and appeals to people across the political spectrum, this does not mean that all politicians will accept it. Joe Biden and the Democrats are turning a nonpartisan technology into a partisan issue.
In conclusion, the Biden administration and most Democrats favor a CBDC over a decentralized cryptocurrency like bitcoin. A CBDC aligns more with Biden and the Democrats than bitcoin, as bitcoin is less attractive to them because it does not help them achieve their authoritarian aspirations.
As the 2024 presidential election approaches, the role of bitcoin politics in shaping voter preferences and political strategies becomes increasingly evident. With more than 50 million bitcoin and cryptocurrency holders in the United States, political leaders' decisions on digital assets will likely play a pivotal role in the upcoming election, reflecting bitcoin's growing importance in the economic and political landscape. wider.
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