Author: Nik Hoffman, Bitcoin Magazine; Translated by: Tao Zhu, Jinse Finance
President Biden has been notably reluctant to support the Bitcoin and cryptocurrency industry over the past four years, as evidenced by his recent vetoes of major legislation and his administration’s broader stance. On May 31, Biden vetoed a key bill that would have allowed highly trusted financial institutions to custody Bitcoin and other cryptocurrencies.
The bill received bipartisan support in both the House and Senate. The bill aims to provide a regulatory framework that will allow banks and other financial institutions to safely hold digital assets, thereby further integrating Bitcoin into the mainstream financial system. Supporters of the bill believe that such a framework will enhance the security of spot Bitcoin ETF funds by distributing tokens that are currently held by only a few institutions, promote innovation, and help promote the development of the Bitcoin industry. However, Biden's veto reflects his administration's lack of support for the industry, and the president has previously compared cryptocurrency traders to "rich tax evaders."
The Biden administration also published a report attacking Bitcoin and proof-of-work mining, and instead promoted central bank digital currencies (CBDCs), saying that "a U.S. CBDC has the potential to provide significant benefits." Biden's desire to embrace a CBDC, which would give the federal government full control over the finances of its citizens, further demonstrates his true colors and reasons for not supporting Bitcoin.
Recently, Joe Biden’s Department of Justice arrested the founders of Samourai Wallet, a popular privacy Bitcoin mixing service, and charged them with money laundering. U.S. Senator Cynthia Loomis defended the Samourai founders, saying that “this position is contrary to existing Treasury guidance and common sense, and violates the rule of law.” Famous whistleblower Edward Snowden also commented on the arrest:
Additionally, the Democratic Party in general has been reluctant to support pro-Bitcoin legislation. Key figures such as Senator Elizabeth Warren have been particularly outspoken against the cryptocurrency industry. Warren has frequently criticized cryptocurrencies for their environmental impact and regulatory challenges, and has said she is "building an anti-crypto army" to combat what she sees as the industry's threat to financial stability and consumer protection.
In stark contrast, former President Donald Trump has recently begun to embrace Bitcoin and cryptocurrency. On June 1, 2024, Trump announced that his campaign would accept Bitcoin payments via the Lightning Network, which is facilitated by Bitcoin and Lightning Network infrastructure provider OpenNode. Trump recently stated that he "will ensure that the future of cryptocurrency and Bitcoin is made in the United States... I will support self-custody for 50 million cryptocurrency holders across the country." Trump also recently stated that he is "very positive and open to cryptocurrency companies" and that "our country must be a leader in this space. There is no second place."
Despite the Democratic Party's stance, the Bitcoin industry is becoming an increasingly influential force in American politics. Recent polls show that cryptocurrency voters are mostly nonpartisan, with no clear preference for the Republican or Democratic Party. This group represents a sizable and growing portion of the electorate, with more than 50 million Bitcoin and cryptocurrency holders in the United States. As the 2024 presidential election approaches, Bitcoin policy is becoming a key issue for candidates to address.
The evolving stance of political leaders on Bitcoin and cryptocurrencies highlights the growing importance of these assets in shaping economic and regulatory policies. For Biden, his reluctance to embrace Bitcoin has alienated a significant portion of the electorate. Cryptocurrency advocates believe that a clear regulatory framework and mainstream acceptance of Bitcoin will drive economic growth, promote innovation, and enhance financial inclusion. However, the Biden administration's focus remains on preventing this from happening.
The rise of Bitcoin has breathed new life into the political landscape. While Bitcoin operates in a nonpartisan manner, appealing to individuals across the political spectrum, that doesn’t mean all politicians will embrace it. Joe Biden and the Democratic Party are turning a nonpartisan technology into a partisan issue.
In conclusion, the Biden administration and most Democrats prefer CBDCs over decentralized cryptocurrencies like Bitcoin. CBDCs are more to the liking of Biden and the Democrats than Bitcoin, which is less attractive to them because it cannot help them achieve their ambitious authoritarian goals.
As the 2024 presidential election approaches, the role of Bitcoin policy in shaping voter preferences and political strategies is becoming increasingly apparent. With more than 50 million Bitcoin and cryptocurrency holders in the United States, political leaders’ decisions on digital assets are likely to play a key role in the upcoming election, reflecting Bitcoin’s growing importance in the broader economic and political landscape.
