Media: Biden's staff has begun crypto industry consultations on policy and community outreach

The move came in response to criticism from the presidential administration for intending to veto the repeal of the anti-cryptocurrency initiative

30.05.2024 - 08:30

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3 min

What's new? President Joe Biden's re-election campaign has begun reaching out to crypto industry players over the past two weeks for policy recommendations and community outreach. The Block's sources note a significant shift in the tone of the Biden administration and campaign and their greater openness to learning more about the digital asset sector.

Material by The Block

What else is known? The change in the way the crypto industry interacts with crypto comes after the Biden administration faced criticism over its intention to veto the Securities and Exchange Commission's (SEC) repeal of SAB 121.

The regulator's proposed standard to record customers' crypto assets in custodian accounts as liabilities made it difficult for institutions to handle crypto assets, and in May, both houses of Congress decided to repeal it.

However, the President's administration indicated that it would veto the House and Senate resolution, thus leaving the SAB 121 standard in place. Lawmakers were unable to muster a 2/3 vote in favor of repeal: such a numerical advantage would have allowed them to override the President's veto and thus override the standard.

In response to the backlash, Biden's campaign staff began independently contacting several crypto industry experts who had previously been denied a meeting with the president.

According to The Block's sources, Biden's supporters realize that his approach to cryptocurrencies could have an impact on the presidential race.

US president has again proposed to impose a 30% tax on mining

Last year, the head of the country proposed similar measures, but they were rejected by Congress

In addition, Biden's rival and former President Donald Trump previously began accepting cryptocurrency donations for his campaign, and also pledged again to prevent the issuance of a digital dollar if re-elected. The asset, which could potentially be issued by the US Federal Reserve, has repeatedly faced criticism over the risks of citizen surveillance.

Earlier, a Paradigm poll showed that cryptocurrency holders prefer Trump to Biden: 48% vs. 39%.

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