Over the past four years, President Joe Biden has shown a clear reluctance to support the bitcoin and cryptocurrency industry, as evidenced most recently by his vetoes of important legislation and his administration's broader stance. On May 31, Biden vetoed a pivotal bill that would have allowed highly trusted financial institutions to custody Bitcoin and other cryptocurrencies.
BREAKING: 🇺🇸 President Biden vetoes bill that would allow highly regulated financial companies to incubate #Bitcoin And encryption. pic.twitter.com/TMHavdWRx7
– Bitcoin Magazine (@BitcoinMagazine) May 31, 2024
The legislation in question has received bipartisan support in both the House and Senate. It aims to provide a regulatory framework that enables banks and other financial entities to securely hold digital assets, thus further integrating Bitcoin into the mainstream financial system. Supporters of the bill argued that such a framework would enhance the security of spot Bitcoin ETFs by distributing coin traps currently held by only two institutions, foster 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 Pres previously He compared cryptocurrency traders to “wealthy tax evaders.”
Biden administration too published Report attacks Bitcoin mining and proof-of-work, promoting central bank digital currency (CBDC) instead, stating that “a US central bank digital currency would have the potential to deliver significant benefits.” Biden's desire to adopt a CBDC, which would allow the federal government to take full control of its citizens' finances, also shows his true colors and reasons for not supporting Bitcoin.
Recently, the Justice Department under Joe Biden arrested the founders of the popular privacy-focused Bitcoin mixing service, Samourai Wallet, and charged them with money laundering. US Senator Cynthia Lummis defend Samurai Founders, stating that “this position is contrary to current Treasury guidance, common sense, and violates the rule of law.” Famous whistleblower Edward Snowden also commented on the arrest:
New: Edward Snowden on US Department of Justice arrest #Bitcoin Samurai Wallet Founders and CEO Mixing Service pic.twitter.com/qmigHJzmZU
– Bitcoin Magazine (@BitcoinMagazine) April 24, 2024
In addition, the Democratic Party in general has also shown a reluctance to support pro-Bitcoin legislation. Key figures like Senator Elizabeth Warren have been particularly vocal in their opposition to the cryptocurrency industry. Warren has frequently criticized cryptocurrencies for their environmental impact and regulatory challenges, and has infamously stated 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 stark contrast, former President Donald Trump has recently embraced Bitcoin and cryptocurrencies. On June 1, 2024, Trump announced that his campaign would accept Bitcoin payments through the accelerator network, facilitated by OpenNode, a provider of the Bitcoin infrastructure and accelerator network. Trump recently said he would “ensure that the future of cryptocurrencies and Bitcoin will be made in the United States… and I will support self-custodial rights for the nation's 50 million cryptocurrency holders.” Trump also recently stated that he is “very positive and open to cryptocurrency companies,” and that “our country should be a leader in this area. There's no second place.”
Despite the Democrats' stance, the Bitcoin industry has become an increasingly influential force in American politics. Recent polls indicate that cryptocurrency voters are largely nonpartisan, with no significant bias toward the Republican or Democratic parties. This demographic represents a large 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 emerging as a critical issue that candidates must address.
Political leaders' evolving position 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 a large segment of the voter base. Cryptocurrency advocates argue that clear regulatory frameworks and mainstream acceptance of Bitcoin would drive economic growth, foster innovation, and promote financial inclusion. However, the Biden administration's focus remains on preventing this from happening.
The rise of Bitcoin has brought new dynamics to the political landscape. While Bitcoin operates in a nonpartisan manner, attracting individuals from across the political spectrum, this does not mean that all politicians will embrace it. Joe Biden and the Democrats are turning nonpartisan technology into a partisan issue.
In conclusion, the Biden administration and the majority of Democrats prefer a central bank digital currency (CBDC) over a decentralized cryptocurrency like Bitcoin. Central bank digital currency (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 ambitious authoritarian goals.
As the 2024 presidential election approaches, the role of Bitcoin politics in shaping voter preferences and political strategies is becoming increasingly clear. 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 the growing importance of Bitcoin in the broader economic and political landscape.
