President Joe Biden has demonstrated a clear reluctance to support the Bitcoin and cryptocurrency industry over the past four years, as evidenced by his recent vetoes of key bills and the administration’s broader stance. On May 31, President Biden vetoed a key bill that would have allowed trusted financial institutions to store Bitcoin and other cryptocurrencies.
BREAKING: 🇺🇸President Biden vetoes bill that would allow highly regulated financial institutions to hold crypto assets #Bitcoin And cryptocurrency. pic.twitter.com/TMHavdWRx7
— Bitcoin Magazine (@BitcoinMagazine) May 31, 2024
The bill in question had bipartisan support in both the House and the Senate. It sought to provide a regulatory framework to allow banks and other financial institutions to safely store digital assets, further integrating Bitcoin into the mainstream financial system. Proponents of the bill argued that such a framework would enhance security for spot Bitcoin ETF funds, spur innovation, and encourage growth in the Bitcoin industry by decentralizing the coin’s honeypot, which is currently held by only a few institutions. However, Biden’s veto reflects the president’s lack of support for the industry. Before He likened cryptocurrency traders to “rich tax evaders.”
The Biden administration also Published The report attacks Bitcoin and Proof-of-Work mining, instead promoting a Central Bank Digital Currency (CBDC), stating that “a U.S. CBDC could bring significant benefits.” Biden’s desire to adopt a CBDC, which would give the federal government full control over the people’s finances, further reveals his true nature and reasons for not supporting Bitcoin.
Recently, Joe Biden’s Justice Department arrested the founder of Samurai Wallet, a popular privacy-focused bitcoin mixing service, and charged him with money laundering. Senator Cynthia Lummis Protected Samurai’s founders said, “This stance runs counter to existing Treasury Department guidelines, common sense, and the rule of law.” Renowned whistleblower Edward Snowden also commented on the arrests:
NEW: Edward Snowden speaks out about Department of Justice arrests #Bitcoin Founder and CEO of mixing service Samourai Wallet pic.twitter.com/qmigHJzmZU
— Bitcoin Magazine (@BitcoinMagazine) April 24, 2024
Additionally, Democrats have generally been reluctant to support pro-Bitcoin legislation, with key figures like Senator Elizabeth Warren being particularly vocal in her opposition to the cryptocurrency industry. Warren has frequently criticized cryptocurrencies’ environmental impacts and regulatory challenges, infamously stating that she is “building an anti-crypto army” to address what she sees as the industry’s threats to financial stability and consumer protection.
In contrast, former President Donald Trump has recently shown a preference for Bitcoin and cryptocurrencies. Announced Trump announced that his campaign will accept Bitcoin payments through the Lightning Network. The network is run by OpenNode, an infrastructure provider for Bitcoin and the Lightning Network. Trump recently said, “I will guarantee that the future of cryptocurrency and Bitcoin is made in the United States of America…I support the right of self-governance for our nation’s 50 million cryptocurrency holders.” Trump also recently said he is “very positive and open-minded about crypto companies” and that “our country has to be a leader in this space. There can be no second place.”
Despite Democratic Party stances, the Bitcoin industry is becoming increasingly influential in US politics. Recent polls show that crypto voters are largely independent and not heavily leaning towards either the Republican or Democratic parties. This demographic represents a significant portion of the electorate, and the percentage is on the rise. There are over 50 million Bitcoin and cryptocurrency holders in the US. As the 2024 presidential election approaches, Bitcoin policy has emerged as a key issue for candidates to address.
The shift in political leaders’ attitudes towards Bitcoin and cryptocurrencies highlights the growing importance of these assets in shaping economic and regulatory policy. For Biden, his reluctance to embrace Bitcoin has alienated a significant portion of his voter base. Cryptocurrency advocates argue that a clear regulatory framework and mainstreaming Bitcoin would boost economic growth, foster innovation and enhance financial inclusion. However, the Biden administration remains focused on preventing that from happening.
The rise of Bitcoin has brought a new dynamic to the political landscape. Bitcoin functions nonpartisanly and appeals to individuals across the political spectrum, but not all politicians have embraced it. Joe Biden and the Democrats are turning a nonpartisan technology into a partisan issue.
In conclusion, the Biden administration and the majority of the Democratic Party support CBDC over decentralized cryptocurrencies like Bitcoin, which is less appealing to them as it does not help them achieve their ambitious authoritarian goals, so CBDC is a better fit for Biden and the Democratic Party than Bitcoin.
As the 2024 presidential election looms, the role Bitcoin policy will play in shaping voter preferences and political strategies is becoming increasingly clear. With over 50 million Bitcoin and cryptocurrency holders in the United States, political leaders’ decisions regarding digital assets are likely to play a pivotal role in the upcoming election, reflecting Bitcoin’s growing importance in the broader economic and political landscape.
