The Democratic Party is showing an increased interest in cryptocurrency, marking a significant change in its position on digital currencies and how they should be regulated, as noted by former Ohio Representative Tim Ryan.
SEC’s Chairman Disapproval and Congress’s Role
Gary Gensler, the appointed Chairman of the Securities and Exchange Commission (SEC) by US President Joe Biden, has been openly critical of cryptocurrency. His strong opposition to the FIT21 bill post its House approval mirrors his cautious approach to regulating crypto. Industry lobbyists argue that Gensler’s views have influenced many Democratic lawmakers who often seek guidance from party-appointed financial experts.
Increasing Democratic Backing for Cryptocurrency Regulation
Cryptocurrency, once met with skepticism among Democrats, is now gaining support within the party. The FIT21 bill was recently passed by the US House of Representatives with 279 votes in favor and 136 against, emphasizing a notable change in the party’s perspective on crypto regulation. Noteworthy is the support from 71 Democrats for the bill, indicating a significant shift in their stance.
Ryan highlighted that fellow Democrats are more eager to engage with cryptocurrency matters rather than wholly relying on the Biden administration and financial regulators.
However, Ryan stresses that it is Congress’s responsibility, not regulators’, to establish lasting policy directions. He argues that while Gensler’s term is temporary, lawmakers must consider the broader and enduring impacts of cryptocurrency regulation.
With Gensler anticipated to step down in June 2026, Ryan suggests Congress should proactively shape the country’s digital currency approach.
Bipartisan Backing and Future Ramifications
The increasing acceptance of cryptocurrency is not limited to the Democratic Party. Former US President Donald Trump, a likely Republican candidate, labels himself as the “crypto president,” advocating for better domestic Bitcoin mining practices and actively using crypto in financial pursuits.
The Biden administration’s shifting stance on crypto is noteworthy. Despite past doubts, the administration plans to accept campaign contributions in cryptocurrency, demonstrating a practical approach to embracing emerging financial technologies.
So, the Biden administration and the SEC spend years trying to crush crypto and even sue Coinbase…But now, they’re scrambling to set up crypto donations through Coinbase?
Wow, they really do think Americans are stupid. pic.com/PTdSs2OFu1
— Dan Gambardello (@cryptorecruitr) June 13, 2024
Meanwhile, Dan Gambardello, founder of Crypto Capital Venture, pointed out the irony in the administration’s shift, highlighting that while they have previously attempted to undermine cryptocurrency, they are now rushing to set up crypto donations, as seen in his comments on X.
Image by Attucks Adams. TradingView chart incorporated.
