Tech coalition urges Biden to embrace crypto regulation as election approaches

Summary

• The Chamber of Progress, a tech industry coalition, urged President Biden to support comprehensive cryptocurrency regulation
• The group argues that this could help engage young voters ahead of the US presidential election
• Over 18 million Americans currently hold or trade cryptocurrencies, with high interest among Gen Z and Millennial voters
• The letter criticizes the current regulatory uncertainty under SEC Chairman Gary Gensler
• Former President Trump has positioned himself as pro-crypto, reversing his previous stance

As the 2024 U.S. presidential election approaches, the cryptocurrency sector is emerging as a potentially significant political issue.

The Chamber of Progressa coalition of the technology industry, called on President Joe Biden to support comprehensive cryptocurrency regulationbilling it as a crucial step to engage young voters and counter growing support for his likely opponent, former President Donald Trump.

In a letter to President Biden on July 9, the House of Representatives emphasized the growing importance of digital assets to a significant portion of the electorate.

According to their data, over 18 million Americans currently hold or trade cryptocurrency, with particular relevance among Gen Z and Millennial voters. Over 50% of these demographics support federal policies that encourage the use of digital assets.

Kyle Bligen, director of financial policy at the House of Progress, wrote in the letter:

“We believe this represents a critical opportunity for your administration to lead on an issue that has a strong impact on young voters.”

The group argues that supporting clear and comprehensive regulation could position the Biden administration as a leader on an issue that is becoming increasingly important to a key voting bloc.

The call for action comes amid mounting criticism of the current regulatory landscape, which the Chamber describes as uncertain and potentially damaging to both investors and innovation.

The letter specifically refers to the actions of Biden-appointed Securities and Exchange Commission (SEC) Chairman Gary Gensler, whose approach to regulating digital assets under existing securities laws has faced numerous legal challenges.

“Consumers have suffered a period of regulatory uncertainty that has devalued the digital assets they own and limited their utility,”

Bligen said in the letter. Recent lawsuits against major cryptocurrency exchanges were cited as examples of the SEC’s controversial approach to the industry.

The House of Representatives praised Biden’s 2022 executive order to ensure responsible development of digital assets, but expressed disappointment with the administration’s opposition to bipartisan efforts in Congress to create clearer regulatory frameworks.

These include the recently passed Financial Innovation and Technology Act for the 21st Century Act and the veto of H.J. Res. 109, both of which are intended to provide clearer guidelines and improve consumer protections in the cryptocurrency market.

The political implications of cryptocurrency regulation in the upcoming election are becoming increasingly clear. Former President Donald Trump, the presumptive Republican nominee, has capitalized on the current administration’s regulatory ambiguity by reversing his previous stance on cryptocurrencies.

Trump is now positioning himself as a champion of American tech leadership, vowing to take a hands-off approach and end what he calls a “crackdown” on the industry. The shift has garnered considerable support from cryptocurrency investors and founders.

The Republican National Committee, co-chaired by Trump’s daughter-in-law Lara, recently approved a draft policy platform that includes promoting cryptocurrencies and Bitcoin mining.

This move further solidifies the Republican Party’s embrace of cryptocurrency-friendly policies ahead of the election.

Despite these developments, the House of Representatives argues that President Biden still has a chance to win on the cryptocurrency issue. “Although [Trump] has recently changed its mind on cryptocurrencies, you still have the opportunity to provide the regulatory clarity that voters are demanding,” the letter states.

The group suggests that supporting comprehensive regulation could not only engage young voters but also demonstrate leadership on a key technological and economic front.

With reports suggesting Biden may be considering accepting cryptocurrency contributions to his reelection campaign and plans to attend a roundtable with congressional leaders to discuss digital assets, there may be signs of a potential shift in the administration’s approach.

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