Bitcoin
Shaping the Future of Cryptocurrency
Over the weekend, Bitcoin Magazine reported that U.S. Congressman Ro Khanna, representing California’s 17th congressional district, is expected to host a roundtable on Bitcoin and blockchain in Washington, D.C., in early July, according to a private email sent by Khanna’s office and seen by Bitcoin Magazine. Khanna’s office described the upcoming meeting as “the most significant meeting between policymakers and blockchain innovation leaders to date.”
Bitcoin Magazine expects the meeting to be attended by officials from the Biden administration, the House and the Senate, alongside American businessman Mark Cuban, according to the email. The main objective of this meeting is to strategize on how to “maintain Bitcoin and blockchain innovation in the United States.” This initiative is seen as a response to former President Donald Trump’s recent decision endorsements of the Bitcoin industry. Trump recently became the first president to accept Bitcoin Lightning payments for campaign donations.
Former President Donald Trump went through a dramatic change position regarding cryptocurrencies, going from vocal critic to ardent supporter. In 2019, Trump said:
“I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based on air. Unregulated crypto assets can facilitate illegal behavior, including drug trading and other illegal activities….”
The transformation in his approach to Bitcoin was evident in a series of statements made on his Truth social media platform following a meeting with Bitcoin miners at his Mar-a-Lago estate in Florida. trump declared, “The choice is clear. President Trump will protect your right to own Bitcoin, to mine Bitcoin, to transact with Bitcoin.” This change is particularly noteworthy given Trump’s attitude previous stance against Bitcoin during his presidency, where he allegedly wanted to “go after Bitcoin for fraud.”
Trump’s new support for Bitcoin and cryptocurrencies goes beyond political rhetoric. His campaign became the first major presidential campaign to accept donations in crypto, seen as an attempt to attract young, traditionally Democratic voters. Trump too promised to end what he describes as President Joe Biden’s “war on cryptocurrencies” if he is re-elected.
In contrast, the Biden Administration has taken a notably hostile stance toward the digital asset sector over the past four years. This included a veto of a repeal of legislation that would have imposed undue charges on companies seeking crypto custody and could stifle innovation and tax proposals on electricity used for Bitcoin mining aimed at reducing emissions. However, there are indications of a potential change in the Biden administration’s approach to cryptocurrencies. Recent reports suggest that discussions are ongoing within the Biden campaign to accept crypto donations through Coinbase Commerce.
The Biden administration’s stance on crypto appears to be evolving, as indicated by recent developments. This change can be attributed to several important advances, including potential SEC approval of spot ether exchange-traded funds (ETFs) and the ticket of the American Blockchain Implementation Act of 2023. The SEC’s consideration of approving spot ETH ETFs represents a significant turnaround for an asset class that was previously considered dead on arrival. Additionally, the recent passage of the American Blockchain Deployment Act of 2023 by House representatives marks a modest but important step toward advancing U.S. competitiveness in the blockchain industry.
If held, Congressman Khanna’s upcoming roundtable could spell a pivotal moment for the US crypto industry. The roundtable aims to create a collaborative environment to promote growth and innovation by bringing together policymakers and industry leaders. This would also mean that both Democrats and Republicans expected nominees to hold Bitcoin mining round tables and could pave the way for a more favorable regulatory landscape in the United States.