Regulation
Crypto Leaders Meet Biden Adviser, Lawmakers to Address Regulatory Tensions
Ripple CEO Brad Garlinghouse appears on “Mornings with Maria” to weigh in on the cryptocurrency market, claiming it will double in size by the end of 2024.
On Wednesday, bigwigs in the $2 trillion cryptocurrency industry met with a senior White House official in Washington, DC, to express frustration with the Biden administration’s regulatory crackdown on the sector and whether their strained relationship can be mended.
The event was held at the Willard Hotel, located just steps from the White House. It was hosted by a pair of prominent Democrats, California Congressman Ro Khanna, who represents a district that includes the tech enclave of Silicon Valley, rich in supers, and billionaire tech entrepreneur Mark Cuban, an investor and cryptocurrency advocate.
Ro Khanna on oil production and gas prices (Fox News)
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The exclusive meeting, attended by about 30 people by invitation only, included top Democratic politicians: Rep. Joe Neguse (D-Colorado) and Sen. Kirsten Gillibrand (D-New York); Ripple CEO Brad Garlinghouse; SkyBridge Capital chief Anthony Scaramucci; prominent former hedge fund manager and cryptocurrency investor Mike Novogratz; and officials from major cryptocurrency firms and trade groups.
Anita Dunn, a senior adviser to President Biden, also attended the meeting, but another guest, White House Chief of Staff Jeff Zients, was absent. Dunn spoke briefly, acknowledging that the conversation with the industry hasn’t been as productive as it could be. She then listened as attendees criticized the administration’s treatment of digital assets and how the Securities and Exchange Commission’s myriad enforcement actions are hurting companies and hindering market competitiveness.
MEET THE PRESS — Pictured: (left to right) Anita Dunn, former White House communications director, appears at “Meet the Press” in Washington, D.C., Sunday, May 4, 2014. (Photo by: William B. Plowman/NBC/NBC Newswire/NBCUniversal via Getty Images) ((Photo by: William B. Plowman/NBC/NBC Newswire/NBCUniversal via Getty Images) / Getty Images)
If the meeting was intended to mend fences between cryptocurrency advocates and the Biden White House, it’s unclear whether it achieved its goal.
“You suck at cryptocurrency,” one participant told Dunn in an exchange that FOX Business described as “respectful but direct.”
“I’m a lifelong Democrat, but you’re so wrong about this,” another attendee said.
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Biden’s Republican challenger, Donald Trump, he courted industry for votes and campaign contributions with some success amid the administration’s regulatory crackdown. The Winklevoss twins, of Facebook fame and founders of the Gemini crypto exchange, have contributed about $1.7 million to Trump’s campaign to support him in his stated mission to “end Biden’s war on cryptocurrency” and take a more light-hearted regulatory approach than the current occupant of the White House and his chief financial regulator, SEC Chairman Gary Gensler.
Khanna did not immediately respond to Fox Business’s requests for comment, but Cuban described the meeting as beneficial for both sides.
“I think it went well,” Cuban said in an email. “The right people in the Senate, House, and WH (White House) were there. I think we’ll see changes in how Biden’s WH and Democrats in general support cryptocurrencies.”
Dallas Mavericks owner Mark Cuban says he thinks getting “woke” is good for business. (Christian Petersen/Getty Images / Getty Images)
Others interviewed by Fox Business agreed with Cuban that attendees effectively conveyed their message of frustration to Dunn and the Biden White House.
Some attendees criticized the White House’s decision to reappoint the SEC’s cryptocurrency commissioner Caroline Crenshaw, a Democrat who in January voted against the agency’s approval of the launch of 11 spot bitcoin ETFs.
Gillibrand, meanwhile, explained the regulatory complexities of digital assets, including the dispute between the SEC and its sister agency, the Commodity Futures Trading Commission, over who should have jurisdiction to regulate the $2 trillion cryptocurrency market. She also took the opportunity to promote her new stablecoin legislation with Republican Sen. Cynthia Lummis (R-Wyoming) as a prime example of why the cryptocurrency industry needs proper regulation.
Dunn said that while he is not a political person, he will make sure to bring the industry’s concerns to the White House and follow up on the conversations.
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“Her tone, her demeanor, her body language told me that she was taking it seriously and really engaging with what people were saying,” Crypto Council for Innovation President Sheila Warren told FOX Business. “She was definitely eager to learn more.”
“I was much more optimistic when I left than when I came in,” said Paul Grewal, Coinbase’s chief legal officer. “I think it’s a sign of progress that Anita Dunn came in, even though she’s dealing with the NATO summit and a very tense period in the Biden campaign.”
U.S. President Joe Biden (right) and Republican presidential candidate, former U.S. President Donald Trump, attend the CNN presidential debate at CNN Studios on June 27, 2024 in Atlanta, Georgia. President Biden and former President Trump are (Photo by Justin Sullivan/Getty Images / Getty Images)
Attendees also told FOX Business that it’s clear Democrats in attendance know they’re playing catch-up in attracting cryptocurrency support to Biden’s campaign, which is in the midst of an existential crisis following the president’s disastrous debate performance against Trump last month.
“Republicans are playing chess and Democrats are playing checkers,” said one attendee who spoke on condition of anonymity. “There’s no voting benefit to being anti-crypto.”
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While most attendees agreed that the Dunn meeting was an important first step toward a more positive dialogue between the cryptocurrency industry and the Biden administration, they said the ball is now in the White House’s court.
“Words are easy, action is hard but necessary,” Ripple CEO Brad Garlinghouse said in a send on X. “Choose wisely. Voters are paying attention.”