Why DC’s Crypto Lobby Craves a Biden Dropout: An Analysis

The future treatment of cryptocurrency under a new presidential administration remains uncertain. However, multiple industry lobbyists have conveyed to Decrypt that the current situation under President Joe Biden's administration is untenable.

As speculation intensifies about President Joe Biden potentially withdrawing from his re-election campaign, most political figures in Washington are reluctant to publicly commit to a stance in the escalating debate due to the perceived risks outweighing the rewards.

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The Crypto Industry’s Perspective on a Potential Biden Dropout

For leaders in Washington's crypto policy sector, the dilemma of advocating for Biden's withdrawal is complex. The administration has garnered widespread disapproval within the crypto industry for various reasons, including its support for the Securities and Exchange Commission’s (SEC) aggressive actions against crypto firms and its vetoes of crucial pro-crypto legislation.

Conversely, some overtures from the administration towards the crypto industry have been seen as promising. Additionally, the identity and crypto stance of a potential successor to Biden remain highly uncertain.

Despite these uncertainties, several influential crypto policymakers and lobbyists privately express a desire for Biden to step down, regardless of his successor. The prevailing sentiment is that the situation cannot deteriorate further.

"The general outlook of the industry is that anything—even if it's another Democratic administration—anybody would be better than what we have now," stated an anonymous crypto lobbyist to Decrypt.

Biden's ongoing crisis of legitimacy has prompted some industry leaders to examine the administration's apparent hostility towards crypto. Republicans have recently argued that opposition to crypto is inherent within the Democratic Party.

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However, multiple crypto policy experts attribute the issue to the significant influence of Senator Elizabeth Warren (D-MA), a noted crypto critic, over the Biden Administration's financial services policy. One unnamed crypto policy expert suggested that Warren's influence is so pervasive that it stems from a clandestine agreement dating back to the 2020 Democratic primary, where she seemingly secured significant control over financial services policy in exchange for political support. Her influence is evident in numerous key agency appointments and crypto-related decisions made by the White House.

"If Biden is removed, then Warren's considerable influence over presidential fiscal policy might also diminish," the policy expert noted.

Another consideration for the crypto industry regarding Democratic leadership is age. Younger members of the Democratic Party tend to be more supportive of crypto. Given the significance of age in Biden's current public relations challenges, potential successors such as Vice President Kamala Harris, Michigan Governor Gretchen Whitmer, and Maryland Governor Wes Moore, who are considerably younger than Biden, offer a glimmer of hope to industry leaders.

"I believe there is significant potential with younger party members to ultimately be much more favorable to the crypto industry," stated a crypto policy expert.

Nonetheless, a prominent crypto lobbyist, requesting anonymity, criticized colleagues who they felt were overstating the impact of a potential Biden withdrawal, labeling such predictions as "unsophisticated."

"You have to play the hand you're dealt," the lobbyist told Decrypt. "We have this administration, this SEC chair, this Congress, and we should be doing what we can do in this moment."

"That is the only way to be effective at policy," they added.

While the Democratic Party grapples with its strategic direction, Republicans have intensified efforts to attract crypto advocates. Recently, the GOP passed a draft party platform explicitly endorsing crypto, marking a first for a major American political party.

For years, Washington’s crypto lobby has maintained that blockchain technology should not become a partisan issue, advocating for bipartisan consensus to ensure the industry's long-term security and health.

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However, while the Democrats' presidential nominee and their potential approach to the crypto industry remain uncertain, the industry's prospects under a potential Trump administration are more predictable.

"It seems quite clear that if Trump and the Republicans are in charge, that would definitely be a positive development for the crypto industry," Kristin Smith, CEO of the prominent crypto lobbying group the Blockchain Association, told Decrypt.

News Source:- decrypt.co