While Donald Trump, the expected Republican presidential candidate, has positioned himself strongly in favor of cryptocurrencies, President Biden’s stance has been more ambiguous. Nevertheless, according to Jiang and Lowe, Biden is gradually becoming more receptive to the crypto industry, despite his recent action to block a bill that aimed to overturn Staff Bulletin 121.
Biden Seeks Middle Ground in Crypto Policy as Gensler Maintains Caution on FIT21
The Biden Administration appears to be changing its approach towards the digital asset sector, with reports indicating that Biden’s re-election campaign has been actively seeking input from stakeholders in the blockchain industry to shape future crypto policy.
Despite this shift, SEC Chair Gary Gensler continues to hold firm views, expressing reservations about the Financial Innovation and Technology Act of 2021 (FIT21). Gensler’s cautious stance underscores the ongoing complexities and debates surrounding the regulation of cryptocurrencies.
Gensler asserted :
“The Financial Innovation and Technology for the 21st Century Act (“FIT 21”) would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.”
Pantera analysts suggested that openly opposing Gensler could have embarrassed the chair, noting that presidents typically uphold the independence of regulatory agencies separate from the executive branch. Instead, Biden has opted for a less confrontational approach by encouraging the SEC to amend the rule independently.
FIT21 Act Signals Policy Evolution Amidst Skepticism
Even as President Biden vetoed SAB 121 , the White House has expressed a keen interest in collaborating with Congress to establish cryptocurrency regulations that would support the responsible growth of digital assets and payment innovations, aiming to reinforce the US’s leadership in the global financial system.
Pantera highlighted that President Biden chose not to veto the more significant pro-crypto FIT21 Act, which successfully passed the House of Representatives in mid-May. According to their research note, as FIT21 progresses through the Senate, it will evolve but remains a step toward establishing a clearer regulatory framework for cryptocurrencies.
Pantera also urged voters to choose the right side by saying:
” the passing of the FIT21 bill and the approval of Ethereum ETFs represent a significant shift in the regulatory and political landscape for cryptocurrencies in the United States. For a while, it seemed that the industry was at a standoff with no visibility as to when things would get moving. We are now moving. “
Biden’s presidential campaign has reportedly started reaching out to the crypto industry in recent months. On the other side, Donald Trump has been actively engaging with the crypto community, hosting Bitcoin miners and non-fungible token investors at his Florida resort, Mar-A-Lago, and accepting campaign donations in cryptocurrencies.
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