Markets
Will Biden and Trump clash over cryptocurrencies tonight?
The amount of airtime cryptocurrencies get during Thursday’s debate between President Biden and former President Donald Trump could sway a significant portion of single-issue voters.
Regulatory treatment of digital assets became a rallying cry for former President Trump, who turned his back on it Skeptical of Bitcoin to a “Crypto President” in recent weeks. Yet many wonder whether Trump will not only talk but also push cryptocurrencies in front of millions of Americans.
Trader on the decentralized forecast market Polymarket they are outlining a 61% chance, as of this writing, that Trump will mention Bitcoin or cryptocurrencies during Thursday’s debate. So far, the bet has raised $127,000, along with other words Trump might say into his microphone.
Hosted by CNN, Trump could use the debate as a high-profile opportunity to influence the Biden administration’s treatment of digital assets. Under the current leadership, the industry has faced a crisis increase in control emerged after the collapse of cryptocurrency exchange FTX in 2022.
Lawsuits filed against major cryptocurrency firms like Coinbase by Gary Gensler, the Biden-appointed chairman of the Securities and Exchange Commission, have also riled the entire industry.
Trump’s recent embrace of cryptocurrency can be traced back to a gala last month. At a Mar-a-Lago event for holders of his Trump-themed NFTs, Trump signaled that he was “Well” with cryptocurrencies, while attacking Gensler as someone who “is dead set against it.”
Since then, the former president has begun accepting cryptocurrency donations, while also calling for more Bitcoin to be “Made in the USA“During his latest appearance, Trump also disavowed central bank digital currencies (CBDCs), a digital form of currency that could will soon be outlawed in the United States
Meanwhile, the Biden administration has clashed with cryptocurrency miners. A year ago, the White House defended a proposal that would have imposed a 30% excise tax on electricity consumed by mining companies so that they “do not have to pay the full cost they impose on others.”
The sudden approval of Ethereum spot ETFs in May, however, has left analysts speculating that political pressure was a motivating factor behind the last-minute about-face. There are also reports that the Biden administration has recently made he looked for a guide on cryptocurrencies by industry operators.
However, Biden supported the SEC when he vetoed a bill last month that would have scrapped guidelines for banks on custody of digital assets. Known as Staff Accounting Bulletin (SAB) 121, Biden he wrote “would not support measures that jeopardize the well-being of consumers and investors.”
Although the SEC guidance was ultimately confirmed, there was language in Biden’s statement that suggested he and Trump may agree on a cryptocurrency-related issue.
“My Administration looks forward to working with Congress to ensure a comprehensive and balanced regulatory framework for digital assets,” Biden wrote, adding that this would “help strengthen U.S. leadership in the global financial system.”
By Ryan Ozawa.