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The Battle Between the Crypto Industry and the Biden Administration
A conflict has arisen between the U.S. House and the crypto industry following the passage of a non-binding resolution that has escalated into a larger altercation involving the Biden administration. Charles Hoskinson, the creator of Cardano, took to Twitter to express his concerns, accusing the Biden administration of a deliberate effort to undermine the crypto sector. The White House announced its intention to veto resolution H.J. Res. 109, which called upon the Securities and Exchange Commission (SEC) to retract a staff bulletin regarding digital asset custody accounting.
The resolution, which garnered bipartisan support with a 229-193 vote, criticized the SEC for impeding innovation within the digital asset space. Hoskinson referred to this move as part of “Operation Chokepoint 2.0,” emphasizing the detrimental impact it could have on the American cryptocurrency industry. He warned voters that supporting Biden in the upcoming election could lead to the destruction of the crypto sector.
The White House defended its stance by arguing that the resolution would undermine the SEC’s efforts to protect investors and maintain financial system stability in the crypto markets. However, crypto enthusiasts, including Hoskinson, viewed this differently and expressed their preferences for former President Donald Trump in the upcoming election due to what they perceived as a more supportive stance towards the industry.
Critical Concerns About the Biden Administration’s Approach
Ryan Selkis, the founder of Messari, highlighted potential consequences of a Biden reelection on the crypto industry. Selkis cautioned that additional regulations could target stablecoins, unregistered securities, decentralized finance (DeFi), Bitcoin mining, and other facets of the crypto ecosystem. Similarly, Rahul Sood, CEO of Irreverent Labs, and Amir Haleem, Founder of Helium, voiced their disappointment with Biden’s position on crypto, making it challenging for crypto supporters to endorse his presidency.
Dispute Over SEC’s Staff Accounting Bulletin
The contentious issue at the center of the conflict is the SEC’s Staff Accounting Bulletin (SAB), which SEC Chair Gary Gensler defended as a necessary measure. Despite Gensler’s assertions, critics on Capitol Hill, led by Republican Patrick McHenry, accused the SEC of stifling the crypto industry and making arbitrary decisions. This disagreement underscores the growing importance of the crypto community as a significant voting bloc in upcoming elections.
A recent study conducted by the Blockchain Association revealed that 90% of crypto holders plan to participate in the next election, with concerns about stifling innovation through excessive regulation. The study indicated that a substantial portion of crypto holders identify with both Democratic and Republican parties, further emphasizing the industry’s political sway.
Contrasting Views Between Trump and Biden
Former President Trump has seized the opportunity to align himself with the crypto community, contrasting sharply with Biden’s perceived stance. Trump acknowledged the exodus of crypto companies from the U.S. due to unfavorable conditions and expressed his support for the industry. This shift in attitude is a departure from Trump’s previous skepticism towards cryptocurrencies during his presidency, highlighting the evolving dynamics within the political landscape.
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