Regulation
Crypto executives meet with Biden adviser, lawmakers to address regulatory tensions
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Heavyweights in the $2 trillion cryptocurrency industry met with a senior White House official in Washington DC on Wednesday to express frustration with the Biden administration’s regulatory crackdown on the industry and to explore whether their strained relationship can be repaired.
The event was held at the Willard Hotel, located just steps from the White House, and was hosted by two prominent Democrats, California Rep. Ro Khanna, who represents a district that includes the ultra-wealthy tech enclave of Silicon Valley, and billionaire tech entrepreneur Mark Cuban, an investor and advocate for cryptocurrencies.
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The exclusive, invitation-only meeting brought together about 30 people, including prominent Democratic politicians Congressman Joe Neguse (D-Colorado) and Senator Kirsten Gillibrand (D-New York); Ripple CEO Brad Garlinghouse; SkyBridge Capital principal Anthony Scaramucci; former hedge fund manager and cryptocurrency investor Mike Novogratz; and executives from major cryptocurrency companies and trade groups.
Anita Dunn, a senior adviser to President Biden, also attended the meeting, but another guest, White House chief of staff Jeff Zients, was not present. Dunn spoke briefly, acknowledging that the dialogue with the industry was not as productive as it could have been. She then listened as participants criticized the administration’s treatment of digital assets and how the Securities and Exchange Commission’s myriad enforcement actions hurt companies and stifle market competitiveness.
MEET THE PRESS — Pictured: (L-R) Former White House communications director Anita Dunn appears on “Meet the Press” in Washington, DC, on Sunday, May 4, 2014. (Photo by: William B. Plowman/NBC/NBC Newswire/NBCUniversal via Getty Images) ((Photo by: William B. Plowman/NBC/NBC Newswire/NBCUniversal via Getty Images) / Getty Images)
If the meeting was intended to bring crypto advocates and the Biden White House closer together, it is unclear whether it achieved its goal.
“You suck at crypto,” one participant told Dunn in an exchange described to FOX Business as “respectful but direct.”
“I’m a lifelong Democrat, but you guys are really wrong about this,” another participant said.
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Biden’s Republican rival, Donald Trump, has courted the industry for votes and campaign contributions with some success amid the administration’s regulatory crackdown. The Winklevoss twins, famous for their work at Facebook and founders of the Gemini cryptocurrency exchange, contributed about $1.7 million to Trump’s campaign to support his stated mission to “end Biden’s war on crypto” and take a lighter regulatory approach than the current White House occupant and his top financial regulator, SEC Chairman Gary Gensler.
Khanna did not immediately respond to Fox Business’s request for comment, but Cuban described the meeting as mutually beneficial.
“I think it went well,” Cuban said in an email. “The right people from the Senate, the House, and the White House were there. I think we’ll see some changes in how the Biden White House and Democrats in general support cryptocurrencies.”
Dallas Mavericks owner Mark Cuban believes becoming “woke” is good for business. (Christian Petersen/Getty Images / Getty Images)
A few others interviewed by Fox Business agreed with Cuban that the attendees effectively conveyed their message of frustration to Dunn and the Biden White House.
Some attendees criticized the White House’s decision to reappoint anti-cryptocurrency SEC commissioner Caroline Crenshaw, a Democrat who voted against the agency’s approval of 11 bitcoin spot ETFs in January. Gillibrand, meanwhile, explained the regulatory complexities surrounding digital assets, including the dispute between the SEC and its sister agency, the Commodity Futures Trading Commission, over who should have jurisdiction to regulate the $2 trillion cryptocurrency market.
Gillibrand also took the opportunity to tout her new stablecoin legislation with Republican Sen. Cynthia Lummis (R-Wyoming) as an important example of why the crypto industry needs proper regulation.
Dunn said that while she is not a political appointee, she will be sure to bring the industry’s concerns to the White House and follow up on conversations.
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“Her tone, her demeanor, and her body language showed me that she was taking this seriously and that she was really interested in what people were saying,” Crypto Council for Innovation President Sheila Warren told FOX Business. “She was really eager to learn more.”
“I was much more optimistic going out than I was going in,” said Paul Grewal, Coinbase’s chief legal officer. “I think it’s a sign of progress that Anita Dunn has come in, even though she’s dealing with the NATO summit and a very tense time in the Biden campaign.”
U.S. President Joe Biden (R) and Republican presidential candidate former U.S. President Donald Trump participate in the CNN presidential debate at the CNN studios on June 27, 2024 in Atlanta, Georgia. President Biden and former President Trump are (Photo by Justin Sullivan/Getty Images/Getty Images)
Attendees also told FOX Business that it was clear Democrats in attendance knew they were playing catch-up to attract cryptocurrency support to the Biden campaign, which is in the midst of an existential crisis following the president’s disastrous debate performance against Trump last month.
“Republicans play chess and Democrats play checkers,” said one participant who wished to remain anonymous. “There is no electoral advantage to being anti-cryptocurrency.”
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While most attendees agreed that the meeting with Dunn was an important first step toward a more positive dialogue between the crypto industry and the administration, they said the ball is now in the White House’s court.
“Words are easy, action is hard but necessary,” Ripple CEO Brad Garlinghouse said in a post on X. “Choose wisely. Voters are paying attention.”