Biden stops crackdown on cryptocurrency industry as election approaches

As the US election approaches, Biden's stance on cryptocurrencies appears to be softening. What is behind this decision and what can the crypto community expect?

Cryptocurrency-related events in the US may indicate that President Joe Biden is entering the race for the crypto community's attention. The Biden administration is likely to change his aggressive rhetoric on cryptocurrencies in the near future. How will this affect the crypto landscape in the United States?

Vote to repeal SEC directive

Last week, the Senate passed a resolution repealing the U.S. Securities and Exchange Commission's (SEC) Staff Accounting Bulletin 121 (SAB 121). The SEC rule addressed accounting standards for financial institutions that hold cryptocurrencies.

SAB 121 establishes accounting rules for companies that hold their clients' cryptocurrencies. The bill would require financial institutions to classify digital assets as liabilities and display them on their balance sheets.

The SEC says SAB 121 protects investors. However, the crypto industry does not agree with this. In his opinion, such rules may make banks and other financial institutions less willing to work with crypto companies. And this, in turn, could curb the growth of the cryptocurrency industry.

Supporters of the digital asset industry reacted very positively to the vote. Representatives of the Blockchain Association called the result “impressive.”

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It should be noted that the Blockchain Association linked the Senate's decision to the upcoming elections in the United States. Experts believe that in this way the current administration wants to get the vote of young people:

“The threat of a presidential veto negates the fact that there is a growing awareness among the voting public, particularly young people, that cryptocurrencies are something that should concern our elected officials.”

Blockchain Association

FIT21

The House of Representatives will also vote on the Financial Innovation and technology for the 21st Century Act, known as FIT21 or HR 4763. The legislation aims to establish a consistent regulatory framework for all digital assets in the United States.

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One of the key aspects of the law is clarifying the regulatory responsibilities of the Futures Trading Commission (CFTC) and the SEC. The split is strictly necessary as it is what will determine whether digital assets are treated as securities or commodities.

Proponents of FIT21 argue that the bill will offer the necessary regulatory clarity while allowing the industry to continue operating in the US. They believe that clearer regulation will help crypto companies build public trust, develop products valuable and ensure accountability for poor practices.

<h2 class="wp-block-heading" id="spot-ethereum-et-fs”>ethereum Spot ETF

The possibility of Biden changing his rhetoric is also fueled by rumors regarding the spot approval of ethereum ETFs. Barron previously bitcoin-prices-ccd90624″ target=”_blank” rel=””>reportedciting anonymous sources, that the SEC was leaning toward approving spot ethereum ETFs.

The agency has asked potential issuers to update Form 19b-4 filings to launch the funds.

Bloomberg analyst James Seyffart also noted that at least five companies submitted updated documents to the SEC. These include Fidelity, VanEck, Invesco/Galaxy, ARK Invest/21Shares, and Franklin Templeton.

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In parallel, VanEck's proposed ethereum spot ETF with the symbol ETHV appeared on the DTCC asset list. The Franklin Templeton fund (EZET) has also been added to the list.

Bloomberg ETF analyst Eric Balchunas also changed his forecast on the probability of approval of the ethereum spot ETF, raising it to 75%.

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“I heard rumors this afternoon that the SEC might be doing a 180 on this (increasingly political issue), so now everyone is fighting (like us, everyone else assumed they would be denied).”

Eric Balchunas, Bloomberg ETF Analyst

He and his colleague James Seyffart became one of the main sources of information on bitcoin spot ETFs and accurately predicted their approval and launch in January. Seyffart also wrote that he supports the analyst's opinion, adding that the information comes from several sources.

VanEck's Form 19b-4 filing deadline is May 23, and ARK Invest's fund, managed by investor Cathie Wood, is May 24. For the most prominent companies vying to launch ethereum ETFs, BlackRock, the deadline to file Form 19b-4 is August 7. .

Biden's main competitor began accepting cryptocurrency payments

Another turning point in Biden's policy shift could be the fact that presidential candidate Donald Trump will accept political donations in cryptocurrencies, including bitcoin (btc), ethereum (eth), Solana (SOL), USDC, XRP, Dogecoin ( DOGE), Shiba Inu. (SHIB), ApeCoin (APE), bitcoin Cash (BCH), Dai (DAI) and Litecoin (LTC).

About two weeks ago, during an event to promote his nft collection, the Republican candidate promised support for the industry, contrasting it with the policies of the administration of current President Joe Biden.

Now, Trump has once again called on the cryptocurrency community to support him amid heavy regulation by Biden supporters.

“Biden surrogate Elizabeth Warren said in an attack on cryptocurrencies that she was building an “anti-cryptocurrency army” to restrict Americans' right to make their own financial decisions. Now, with a new cryptocurrency option, MAGA supporters will build a cryptocurrency army and lead the campaign to victory on November 5th!

Donald Trump election website

<h2 class="wp-block-heading" id="should-the-crypto-community-be-taken-into-account”>Should the crypto community be taken into account?

The number of cryptocurrency asset owners in the US is growing and the upcoming presidential election could significantly impact the cryptocurrency industry.

A recent survey by Digital Currency Group also crypto-a-Key-Issue-in-2024-U.S.-Elections” target=”_blank” rel=””>found that more than 20% of respondents in several states consider cryptocurrencies to be a vital issue in the upcoming US elections.

According to the study, 40% of respondents want candidates to debate digital assets more. Between 20% and 25% would prefer an elected politician to focus on regulating the industry and protecting investors.

48% do not trust candidates involved in the digital asset sector. 30% are willing to support a pro-cryptocurrency politician.

The results of a Paradigm survey indicate even greater distrust of Biden among the cryptocurrency community. Thus, around 48% of voters who own digital assets plan to vote for Donald Trump in the next US presidential election. However, only 38% prefer Biden.

What is behind the softening of the policy of the American authorities?

The cryptocurrency industry is raising its profile in Washington in hopes of influencing the upcoming US election, spending unprecedented amounts of money to support cryptocurrency-friendly candidates and train lawmakers.

While the industry's previous efforts to shape national elections have been largely unsuccessful and, in the case of former FTX CEO Sam Bankman-Fried, criminal, the crypto industry's growing political influence now appears to have greater staying power.

Therefore, soon, the Biden administration could change its aggressive rhetoric towards cryptocurrencies to a friendly one to catch up with Trump in this direction, who has turned cryptocurrencies into a campaign weapon.