As the 2024 US Presidential Election approaches, the crypto industry is holding its breath. The outcome of this pivotal event is poised to have a profound impact on the future of digital currency, with far-reaching implications for investors, innovators, and users alike. The two leading candidates, Joe Biden and Donald Trump, have vastly different approaches and stances to cryptocurrency regulation, adoption, and innovation.
A Biden win could usher in a new era of stringent regulations, while a Trump victory may usher in a period of decentralized freedom. As the crypto industry stands at the crossroads, one thing is certain - the 2024 US Presidential Election will be a defining moment in the evolution of crypto.
Donald Trump, the Republican candidate, has been a wildcard on cryptocurrency. His tweets have sent Bitcoin soaring, and he has began to accept crypto donations for his campaign. Trump's crypto stance is often seen as decentralized and hands-off, with a focus on individual freedom and limited government intervention. On the other hand, he has also expressed concerns in the past, about the unregulated nature of cryptocurrencies, calling them "unbacked" and "volatile".
This former president remains the clear favorite to secure the Republican Party's nomination for the 2024 presidential election. His ability to dominate media attention and control the political narrative has allowed him to stay ahead of his competitors, and his endorsement record in recent primaries has been impressive. Though Trump's known for his controversial behavior and comments that never fails to make it onto news headlines, there's a saying that goes: "There's no such thing as bad publicity."
Joe Biden, the Democratic candidate, hask instead taken a hardline approach to cryptocurrencies. Biden's crypto stance is often seen as more centralized and regulated, with a focus on consumer protection and financial stability. His campaign has proposed introducing a digital dollar, a central bank-backed cryptocurrency that could potentially compete with private cryptocurrencies. His administration has already begun cracking down on crypto platforms, and his proposed digital dollar could spell doom for decentralized currencies.
President Joe Biden is poised to cruise to the Democratic Party's nomination for the 2024 presidential election, buoyed by a strong record of accomplishments, a unified party behind him, and a lack of significant challengers. With a stable lead in polls and a robust fundraising effort, Biden has consolidated support from various factions within the party, including progressives, moderates, and centrists.
However, things may be different this time round. For the first time, crypto has taken center stage as a key issue, with voters increasingly leaning towards candidates who are more crypto-friendly. The growing adoption and mainstream acceptance of digital assets have made crypto a hot-button issue, particularly among younger voters and tech-savvy demographics.
Now, crypto has become a litmus test for candidates seeking to connect with the next generation of voters and harness the power of technological innovation. How will Trump and Biden take on this wild bull ride?
In 2021, the former US President expressed his skepticism about Bitcoin in an interview with Fox Business, that he sees it as a "scam" affecting the value of the US dollar. Adding to that, he wanted the dollar to be "the currency of the world", referring to himself as a traditionalist in terms of currency.
He also took it on Twitter in 2019, where he wrote:
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,”
However, since he left office, he has invested in crypto and even issued his own NFT. This is a stark difference from where he originally came from, transforming from a vocal skeptic to a fervent crypto-supporter.
Now, Trump has embraced cryptocurrency as a key weapon in his political arsenal, using his newfound pro-crypto stance to take aim at his political rival, Joe Biden. He’s poised to be the first major party nominee to court cryptocurrency traders, and it’s leaving some Democrats feeling uneasy.
Trump told crypto backers at Mar-a-Lago where he held an event promoting his own NFTs, that they “better vote” for him because of the way the Biden administration has already unleashed a regulatory crackdown on the industry. Additionally, stating "They (Democrats) are against it."
Trump has been actively promoting cryptocurrency on social media, touting its potential to "free America" from the grip of the "deep state" and the "failing dollar". His sudden change towards crypto has left many scratching their heads, with some questioning his motivations, while others hailing him as a champion of financial freedom.
Nonetheless, this issue is giving Trump a fresh line of attack on Biden. Securities and Exchange Commission Chair, Gary Gensler, a Biden nominee, has launched a crackdown on crypto companies for allegedly violating federal securities laws. The White House recently angered crypto advocates when it threatened to veto a bipartisan House bill that aimed to reverse SEC guidelines widely disliked by the industry, providing Trump with fresh ammunition in his political assault on Biden.
However, it is worth noting that not all Democrats are against it. 21 Democrats defied Biden's veto threat and joined with Republicans in voting for a resolution to overturn SEC crypto guidance. On the other hand, key Democrat, Senator Elizabth Warren have stood in the way of industry-friendly policies while warning of risks to consumers and the financial system. Yet, her stance has also been shrouded in controversy, with some accusing her of colluding with Gary Gensler to undermine the crypto industry.
In a series of video clips shared on X by Frank Degods, Trump is seen addressing a group of buyers of his NFTs, hinting that he plans to accept cryptocurrency donations for his campaign.
Recently, Trump is facing felony charges related to a 2016 hush money payment to adult film actress, Stormy Daniels. His former attorney Michael Cohen also detailed Trump's extensive involvement in an alleged scheme to hide negative information about himself from voters in the run-up to the 2016 election. Trump has denied all wrongdoing.
Amidst the on-going trial, Trump spent his day off from trial by having dinner with his NFT supporters at Mar-a-Lago in Palm Beach, Florida. Those invited to the dinner individually purchased more than 47 "Mugshot Edition" NFTs, each priced at $99.
Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership of a specific item, such as a piece of art, music, video, or even a collectible. They are stored on a blockchain, which ensures their scarcity, authenticity, and provenance. They are created by artists, creators, or issuers, which includes Donald Trump. NFTs allows buyers to have full control over their digital assets, monetize, and it can even appreciate in value, making them a new asset class.
His "Mugshot" NFTs are from his 2023 arrest on conspiracy charges to overturn the 2020 U.S. Election results, which has yet to go into trial.
“We did it when NFTs were not hot. We made NFTs hot again,”
A recent Harris poll commissioned by DCG, reveals that a significant 20% of U.S. Voters consider crypto a key issue. Bitcoin Magazine reported comments from longtime Democratic funder, Marc Cuban, warned that the Biden administration's anti-crypto stance could cost Biden the election against Trump.
President Biden seems unenthused about courting the crypto community's vote, and his policies have, in fact, driven a wedge between his administration and digital asset enthusiasts by implementing measures that have negatively impacted crypto holders.
In 2023, Biden accused "wealthy crypto investors" of exploiting tax loopholes supported by "MAGA Republicans." Meanwhile, his top cop at the SEC, Chair Gary Gensler has taken a tough stance on crypto, using regulations to rein in exchanges and protocols. This approach has drawn criticism from many in Congress. Moreover, Senator Elizabeth Warren, a close ally, has also launched an "anti-crypto" campaign to tackle the industry, sparking concerns among crypto enthusiasts.
"If Joe Biden loses, there is a good chance you will be able to thank Gary Gensler and the SEC," Cuban wrote on X. "Crypto is a mainstay with younger and independent voters."
Crypto billionaire, Cameron Winklevoss also took it on X to warn the ongoing crypto war orchestrated by Warren and Gensler could harm the Democratic Party.
In May 2024, a Chinese-owned Bitcoin miner is being kicked off its land in Wyoming following an order from Biden. The administration has given the miner and its partners 120 days to sell the land they operate on due to spying concerns. MineOne Partners runs the mine, which is less than a mile away from Francis E. Warren Air Force Base, which stores intercontinental nuclear missiles.
“The presence of specialized and foreign-sourced equipment potentially capable of facilitating surveillance and espionage activities presents a national security risk,”
In 2022, MineOne bought the land and later set up cryptocurrency mining operations. However, the transaction at that time was not filed with the Committee of Foreign Investment in the US, but it was later alerted to them by a member of the public. The CFIUS launched an investigation, ultimately deemed the purchase posed national security concerns. The tipoff reportedly came from Microsoft, which operates a nearby data center supporting the Pentagon, cautioning that it could enable the Chinese to "pursue full-spectrum intelligence collection operations."
Chokepoint 2.0 launched by the US Department of the Treasury's Office of Foreign Assets Control (OFAC), builds upon the original Chokepoint program, which was established in 2015 to target financial institutions and networks supporting terrorist organizations. The updated program expands the scope to include a broader range of illicit activities and introduces new measures to prevent the exploitation of the global financial system.
The program shares information among banks, governments, and law enforcement to identify suspicious transactions. It uses advanced technology to detect and block illegal activities, while also being able to target a wide range of illegal activities, including terrorism, weapons proliferation, and human rights abuse.
While the program may seem like a good thing, critics argue that Chokepoint 2.0 is an attack on the cryptocurrency industry, as it makes it difficult for crypto businesses to maintain banking relationships. Adding to that, Chokepoint 2.0 is an abuse of power and is causing harm to lawful financial service providers.
Some critics have argued that the Biden administration's continued support for Chokepoint 2.0 is part of a broader effort to "de-bank" certain industries or individuals, including the crypto industry.
The Biden administration may be willing to take on a controversial domestic battle over crypto because their true concern is the potential threat it poses to the US dominant position in global banking and finance. Perhaps if the Biden administration were to openly acknowledge that their efforts to regulate crypto are aimed at countering the geopolitical threats from countries like Russia and China, rather than pitching their crypto crackdown to seem like a blatant attack on American's freedom, it might be more acceptable to the public.
During the recent NFT event held by Trump himself, he appealed to the crowd of crypto enthusiasts to back his presidential bid, stressing the significance of their support. He also took a jab at Biden, asserting that Biden is unaware of the nuances of cryptocurrency.
“Democrats don't like it (cryptocurrency). Biden doesn't even know what it is.”
He highlighted the diverse nature of cryptocurrency and asserted, “If you are in favor of crypto, you better vote for Trump."
The memecoin 'Jeo Boden' has created a stir in the cryptocurrency space, thanks to a casual remark from former US President Donald Trump. This playful cryptocurrency, cleverly named as a humorous misspelling of President Joe Biden's name, saw a significant surge in popularity after Trump mentioned it during an NFT event in Florida, catapulting it to newfound fame.
What was once a subject of amusement has now become a serious investment, as Boden surged 20% following Trump’s offhand remark.
"I don't like that investment," Trump said at an impromptu audience Q&A after an attendee described BODEN to him and said it had a $240 million market capitalization.
Despite its meteoric rise, BODEN's value remains precarious, warn experts. They caution that the memecoin's worth is largely driven by speculation and hype, rather than inherent utility or fundamental value. This leaves Boden vulnerable to sudden market fluctuations, and a single negative tweet from Trump or a shift in investor sentiment could trigger a swift and dramatic decline, exposing the coin's fragile foundation.
A recent poll reveals that over 20% of voters in 6 key swing states identified crypto as a major issue. Bitcoin, Ethereum, and crypto more generally were all mentioned in an American Presidential primary debate for the first time ever.
The crypto industry poured an unprecedented amount of money into political campaigns and lobbying efforts ahead of the U.S. Elections. The goal is to elect crypto-friendly candidates and educate lawmakers, all in hopes of finally getting a friendly regulatory framework for crypto established.
Crypto political action committees (PACs) like Fairshake, has raised $85 million from a collection of crypto companies and have influenced key races, for instance, Fairshake spent $10 million to defeat crypto-skeptic Congresswoman Katie Porter earlier in February 2024.
Crypto influencers, thought leaders, and organizations are mobilizing their communities to participate in the electoral process. They're promoting voter registration, education, and advocacy, ensuring that the crypto constituency is heard. Social media campaigns, online events, and community-driven initiatives aim to increase political engagement and encourage crypto enthusiasts to make their voices count.
Bitcoin and Ethereum may face a significant hurdle with the introduction of stricter regulations aimed at preventing money laundering and illicit activities. While these measures are crucial for consumer protection, they may impose heavy compliance burdens on crypto businesses, exchanges, and users. Moreover, increased regulatory scrutiny could lead to market volatility, as announcements often significantly impact cryptocurrency prices.
Additionally, if the Biden administration adopts a more centralized approach to digital currencies, it may inadvertently undermine the decentralization and transparency that cryptocurrencies have sought to achieve. This could create uncertainty, leading investors to question the long-term sustainability of Bitcoin and Ethereum.
Blockworks published an article "Only a fool would vote on crypto alone" in May 2024, talking about how both US presidential candidates are seeking to capitalize on the crypto industry's momentum for their own political gain.
Both Trump and Biden have undoubtedly benefited from some gains from the crypto sector so far, including campaign donations. Therefore, it is understandable that these two might be exploiting the crypto world for money and votes, instead of their supposed genuine concerns and interests in keeping the crypto world safe.
In the eyes of the diehard crypto evangelists right now, casting a ballot for crypto's future means voting Republican in the presidential election, as they fear alternative choices will spell doom for the US crypto sector.
This fear eventually led some major personalities in Web3 to push crypto supporters into becoming single-issue voters, being "Choose your 2024 candidates based solely on their cryptocurrency stance, or else."
Is this method ideal though? Should they really be prioritizing their own selfish financial interests over broader societal and ethical concerns?
Meme coins referencing Joe Biden's death rumours have emerged and gained quick market attention. Despite debunked claims, investments in these coins highlight the speculative nature of cryptocurrency markets.
EdmundKAMA hit an all-time high of 2.4 cents in the minutes following President Joe Biden's announcement that he was dropping his re-election campaign. With a market cap of $24 million, KAMA is now nearly four times as large as the Biden-inspired coin BODEN, once the kingmaker crypto of so-called PolitiFi. BODEN fell by nearly 50% following Biden's announcement.
WenJunWenJunTrump's shift to support cryptocurrencies is reshaping political dynamics, potentially influencing the upcoming election and boosting the value of pro-Trump memecoins. Robert F. Kennedy Jr.'s pro-crypto stance offers an alternative vision, emphasising regulatory clarity and innovation in the industry's future.
AnaisTrump's reversal on Bitcoin, openness to crypto donations, and comments on meme tokens like BODEN and MAGA trigger optimism. BODEN surges 16.5% to $0.42, MAGA rises 35% to $5.7. Renewed interest in crypto community amid Trump's unexpected support.
Xu LinPoliFi, the fusion of meme coins and politics, sees tokens like Tremp and Boden surge in value on the Solana blockchain, reflecting a playful yet lucrative approach to political betting. With their irreverent charm and potential profitability, PoliFi meme coins offer investors a unique opportunity to engage with both crypto assets and political fervour.
AnaisExplore the dramatic surge in the value of the TRUMP meme token, intricately linked to a crypto wallet named after Donald Trump. From its speculative beginnings to a staggering market capitalization, delve into the volatile interplay between cryptocurrency, political events, and meme culture.
MiyukiThe newly acquired funds will play a pivotal role in expediting the development of Quora's AI chatbot platform, Poe.
AlexFormer first lady Melania Trump is issuing another NFT collection ahead of July 4th. Each of the three thousand available digital collectibles costs $50.
TheBlockDonald Trump has reportedly been charged by a Manhattan grand jury, though the case specifics are still unknown at this point.
BeincryptoDonald Trump’s NFT trading cards grabbed ample attention when launching in December, then fell flat once January rolled around.
decryptNow the NFT trading card project has slumped to new lows as trading demand continues to vanish.
decryptFormer U.S. president Donald Trump said that he decided to launch his NFT collection because he liked the art and thought the images of him were “sort of cute.”
decryptOnline sleuths analyzed blockchain data and assets in the former president’s NFT collection, finding evidence of stolen art and shady wallet addresses, painting a picture of how the digital collectibles came to be.
CoindeskThe edition of 45,000 NFTs features the former president in various fantasy costumes and poses. It will be minted on Polygon.
CoindeskEric Trump, the son of former U.S. President Donald Trump, sent TrumpCoin a threatening tweet saying it was deceptively using his family name, but the coin's Twitter account doesn't appear to be concerned.
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