Cryptocurrency Gains Momentum Among Democrats: Former Rep Predicts Gensler Ouster

The Democratic Party is increasingly embracing cryptocurrencies, signaling a significant shift in the political landscape. Former Ohio Rep. Tim Ryan has observed this growing trend, which is reshaping the party’s stance on digital currencies and their regulation.

SEC Skepticism and Congressional Accountability

Gary Gensler, chairman of the Securities and Exchange Commission (SEC) appointed by US President Joe Biden, has sharply criticized cryptocurrency. He strongly opposed the FIT21 bill after it passed the House, reflecting his cautious stance on crypto regulation. Industry lobbyists say Gensler’s influence has swayed many Democratic lawmakers, who often rely on party-appointed regulators for their expertise on complex financial issues.

Growing Democratic Support for Cryptocurrency Regulation

Cryptocurrency, once viewed with skepticism by many Democrats, is now gaining traction within the party. The US House of Representatives recently approved the FIT21 invoice with a notable majority of 279-136, sending it to the Senate for further consideration. Notably, 71 Democrats voted in favor of the bill, highlighting a substantial shift in the party’s attitude toward crypto regulation.

Total crypto market cap at $2.38 trillion on the daily chart: TradingView.com

Ryan commented on this development, indicating that his fellow Democrats are now more inclined to tackle crypto issues rather than defer entirely to the Biden administration and financial regulators.

However, Ryan emphasizes that Congress, not regulators, has the constitutional responsibility to set long-term policy directions. He argues that while Gensler’s tenure is temporary, lawmakers have a duty to consider the broader, lasting implications of cryptocurrency regulation.

With Gensler should leave office in June 2026, Ryan suggests that Congress should take a proactive role in shaping the nation’s approach to digital currencies.

Bipartisan support and future implications

The growing acceptance of cryptocurrency is not limited to the Democratic Party. Former US President Donald Trump, the presumptive Republican nominee, declared himself the “crypto president”, advocating for better domestic Bitcoin mining practices and actively using crypto in its financial endeavors.

Also noteworthy is the Biden administration’s evolving stance on crypto. Despite previous skepticism, the administration is considering accepting campaign donations in cryptocurrency, reflecting a pragmatic approach to taking advantage of emerging financial technologies.

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Meanwhile, Dan Gambardello, founder of Crypto Capital Venture, pointed out the irony of the change in administration, noting on X (formerly Twitter) that the Biden administration and the SEC spent years trying to undermine crypto- currency, even going so far as to sue Coinbase. but now they’re scrambling to set up crypto donations through Coinbase?

Featured image of Attucks Adams, chart by TradingView

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