Regulation
Analysts Call on Democrats to Shift Course in Favor of Cryptocurrencies After Biden Resigns
Political memecoins have seen wild volatility after Biden dropped out of the race, with Biden-themed tokens plummeting in response to the news.
The cryptocurrency community is considering what Joe Biden’s exit from the 2024 US presidential race could mean for web3.
On July 21, Biden shook up the U.S. political landscape by abandoning his reelection bid and throwing his support behind Vice President Kamala Harris. The move came amid pressure from within the Democratic Party, amid growing concerns about Biden’s age and mental capacity, exacerbated by a disastrous debate performance and troubling poll numbers since.
Memecoin traders were quick to respond to Biden’s withdrawal, with Jeo Boden (BODEN) down 58.3% since the announcement, according to CoinGecko. Jill Boden (JILLBODEN) is similarly down 83.3%, while Hunter Biden’s laptop (LAPTOP) has plunged 46.5%.
However, Kamala Horris (KAMA) token jumped 50.8% and Doland Tremp (TREMP) bounced 11%.
Viewers Ask Democrats to Support Web3
In response to this move, prominent analysts are calling on the Democratic Party to pivot toward courting cryptocurrency voters.
On July 21, the pro-crypto Cedar Innovation Foundation said Fox Business reporter Eleanor Terrett says Biden’s withdrawal presents an opportunity for Democrats to champion Web3 innovation.
“While Secretary Gensler and Senator Warren may have misguided White House policy in the past, this is the time to present a new vision for American innovation that keeps innovative jobs in America, ensures global competitiveness in digital assets, and heralds a new era of financial inclusion and prosperity,” the foundation said.
Jake Cervinskicryptocurrency lawyer and board member of the DeFi Education Fund, similarly tweeted that Biden’s resignation represents a “great opportunity” for the Democratic Party to compete for the cryptocurrency community’s votes.
“A recent poll in swing states shows that 1 in 5 registered voters see cryptocurrency as a major issue, and nearly 1 in 2 agree that they ‘don’t trust candidates who interfere with cryptocurrency,’” Chervinsky said. “Like it or not, thousands of cryptocurrency supporters are ‘single-issue voters’ who could tip the scales in this election in states like Michigan and Pennsylvania.”
Chervinsky went on to say that Biden was on track to lose a lot among cryptocurrency voters because of his affinity for the US Securities and Exchange Commission (SEC)’s despised campaign regulation by law enforcement targeting web3. However, Chervinsky noted that many Democrats have recently voted in favor of the web3 industry’s interests by supporting the repeal of the SEC’s controversial crypto accounting rule, SAB121and supporting the passage of the FIT Law 21.
“If the Democratic Party is serious about winning this election, the new candidate must seize this opportunity,” Chervinsky said.
10x Research, a digital asset research firm, took a different stance, arguing that no incoming Democratic candidate will be able to challenge Republican nominee and former President Donald Trump, and predicting the end of Gary Gensler’s reign as head of the SEC.
“Historically…the SEC chairman resigned when a new administration was elected,” the firm says. tweeted“Although SEC Chairman Gensler’s term ends on June 5, 2026, he will most likely step down by January/February 2025.”
Trump Courts Crypto Community’s Votes
The Democratic Party debate follows Trump’s campaign, which is effectively courting the cryptocurrency industry for electoral support.
On May 21, Trump began accepting cryptocurrency donations. Four days later, Trump took to social media to announce that he was “very open to cryptocurrency companies and everything related to this thriving industry” and that he wanted to promote the US Web3 Industry.
In June, Trump criticized the hostile regulatory environment overseen by Democrats, said he would act as a “crypto president” if re-elected and hosted Bitcoin mining executives at his Mar-a-Lago resort.
Trump’s pro-crypto shift was formalized in The Republican Party’s political platform earlier this month, which promised to “support innovation… defend the right to mine Bitcoin and ensure that every American has the right to self-custody of their digital assets.”
While the moves have attracted support According to many in the cryptocurrency community, not everyone is convinced by Trump’s new pro-Web3 stance.
Critics point out that Trump offered little support to Web3 during his previous term and described Bitcoin as a “scam” and the broader cryptocurrency industry as a “disaster waiting to happen” during a 2021 interview.
Last week, Ethereum’s chief scientist Vitalik Buterin warned voters not to be easily led by politicians who claim pro-crypto trendsHe urged observers to push for broader technological freedoms, including the confidentiality of communications and access to privacy-preserving digital identity technologies.