- US crypto firms are under a multi-year campaign of regulatory hostility.
- Donald Trump backed the US crypto industry in a recent Q&A.
- The majority of Americans do not own digital assets, making crypto a minor voting issue.
The US crypto industry has been subjected to a multi-year pummeling under the Biden administration. Major players, including Robinhood, Coinbase, and Ripple, to name a few, have been subjected to punitive enforcement actions and regulatory crackdowns, to the point that there is no denying that a campaign against digital assets exists.
Some observers, including Dave Weisberger, the CEO of CoinRoute, claim this industry assault is the product of collusion between Democrats and legacy finance, who view cryptocurrency as an existential threat. However, in a glimmer of hope for crypto supporters, presidential hopeful Donald Trump recently voiced his support for the besieged sector.
Trump Wants Thriving US Crypto Industry
During a recent gala dinner Q&A with buyers of his “Mugshot Edition” NFT collection, Trump expressed his support for the besieged US crypto industry. When asked what he would do about firms potentially leaving the US over regulatory hostility, Trump responded, “We’ll stop it because I don’t want that.”
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During the session, the former president also took the opportunity to mock Joe Biden’s understanding of digital assets while drawing a line between both parties by distinguishing Democrats as the anti-crypto party. In contrast, Trump endorsed cryptocurrencies by saying, “I’m good with it.”
Nonetheless, cryptocurrency remains a bipartisan issue, with some Democrats, like Angela Alsobrooks and Jake Auchincloss, in favor of digital assets. However, several senior Democrats, including Elizabeth Warren and Brad Sherman, have been outspoken critics, alleging cryptocurrency enables criminality.
Hoskinson Pans Democrats
Wading into the political arena, Input Output CEO Charles Hoskinson made clear that a Biden victory in November would be disastrous for the US crypto industry. He said:
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“The intent of this administration is to destroy the American cryptocurrency industry. Understand that. It is unambiguously clear. They have obfuscated, lied, and repeatedly, throughout the years, hurt our industry.”
Strengthening his case further, Hoskinson recounted past actions under the watch of the Democrats that have held back the industry, including restricting access to banking, regulation through enforcement, anti-clarity, and most recently, obstructing the legislative process regarding Biden vetoing the passing of H.J. Res. 109 by the House of Representatives.
H.J. Res.109 proposed to repeal a Securities Exchange Commission (SEC) policy that prevented regulated firms from custodying crypto assets. Biden stated that repealing H.J. Res. 109 would disrupt the SEC’s “work to protect investors” and hamper the agency’s efforts to maintain an effective crypto framework.
On the Flipside
- Trump is currently in court over allegations of falsifying business records.
- Crypto policy is not a concern for most voting Americans, as just 17% have invested in digital assets.
- Trump opposed central bank digital currencies, saying he would “never allow them” if elected.
Why This Matters
By backing crypto ahead of the 2024 election, Trump is making a calculated play to court a passionate voter base. This strategy positions Trump as a business-friendly visionary willing to embrace new economic and technological frontiers. However, cryptocurrency remains a niche issue that most mainstream American voters don’t prioritize.
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