The conflict between the cryptocurrency industry and the Biden administration has escalated dramatically. Accusations point to President Biden actively seeking to undermine the expanding crypto space.
Charles Hoskinson, the founder of Cardano, has emerged as a vocal critic, asserting that the administration’s actions significantly threaten crypto innovation.
Cardano Founder Claims Biden Administration Threatens the Existence of Crypto
Central to the dispute is a non-binding resolution passed by the U.S. House, which has sparked heated contention between crypto advocates and the Biden camp.
This resolution, labeled H.J. Res. 109, demanded the Securities and Exchange Commission (SEC) retract a staff bulletin concerning digital asset custody accounting.
Despite garnering bipartisan support, the White House has indicated its intention to veto the resolution, citing concerns over investor protection and the stability of financial markets.
Meanwhile, Hoskinson has not held back in expressing his concerns, characterizing the administration’s stance as nothing short of an assault on the American crypto industry.
In a series of fiery tweets and livestreams, he has urged cryptocurrency holders to view support for Biden in the upcoming election as a direct threat to the industry’s survival.
He even went so far as to label the administration’s actions as “Operation Chokepoint 2.0,” evoking memories of a previous crackdown on financial services.
Other figures in the crypto community, in addition to Hoskinson, have voiced their apprehensions about the Biden administration’s regulatory agenda. Ryan Selkis, founder of Messari, has voiced fears that a second Biden term could bring about a wave of restrictive measures.
He stated that these measures could target various aspects of the crypto ecosystem, including Bitcoin mining, decentralized finance (DeFi), unregistered securities, and stablecoins.
Growing Concerns Under Biden Administration
Several key figures within the cryptocurrency community have also expressed disappointment and concern regarding the Biden administration’s stance on crypto regulation.
Rahul Sood, CEO of Irreverent Labs, and Amir Haleem, Founder of Helium, for example, took to Twitter to voice their frustrations. They stated that voting for Biden has become even more challenging for those who prioritize the interests of the crypto industry.
Their sentiments were fueled by a recent dispute over a Staff Accounting Bulletin (SAB) issued by the SEC, which its Chair Gary Gensler defended as uncontroversial.
However, critics, including Republican Patrick McHenry, accused Gensler of attempting to stifle the crypto industry, with some even labeling the SEC’s decisions as “arbitrary and capricious.”
Meanwhile, the growing importance of crypto holders as a voting constituency has not gone unnoticed. Notably, a study by the Blockchain Association revealed that 90% of those who own digital assets wish to get involved in the coming election.
Many express concerns that overregulation could stifle innovation. About 45% of respondents identify as Democrats, 11% said they are independent, and 43% identify as Republicans.
Former President Donald Trump seized the opportunity to appeal to crypto holders by positioning himself as more crypto-friendly than the current administration.
Despite his previous skepticism towards cryptocurrencies during his presidency, Trump now emphasizes his support for the crypto industry. During a special event held at his Florida estate yesterday, he criticized Gensler and the Democratic Party for their hostility toward crypto.
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