Tech Coalition Urges Biden to Adopt Cryptocurrency Regulations Ahead of Election

Full summary

• The Chamber of Progress, a tech industry coalition, has urged President Biden to support comprehensive regulation of crypto
• The group believes this could help mobilise young voters ahead of the US presidential election.
• More than 18 million Americans currently hold or trade cryptocurrencies, with high interest among Gen Z and millennial voters
• The letter criticizes the current regulatory uncertainty under President Gary Gensler
• Former President Trump Positioned Himself as Pro-Crypto, Reversing His Previous Stance

As the 2024 US presidential election approaches, the cryptocurrency sector is emerging as a potentially important political issue.

The Chamber of Progressa coalition of the technology industry, called on President Joe Biden to support comprehensive regulation of cryptocurrenciesportraying it as a crucial step to mobilize young voters and counter growing support for his likely opponent, former President Donald Trump.

In a letter sent to President Biden on July 9, the House Progress highlighted the growing importance of digital assets to a significant portion of the electorate.

According to their data, more than 18 million Americans currently hold or trade cryptocurrencies, particularly among Gen Z and Millennial voters. More than 50% of these demographics support federal policies that encourage the use of digital assets.

Kyle Bligen, director of financial policy at the House of Progress, wrote in the letter:

“We believe this represents a critical opportunity for your administration to take the lead on an issue that resonates strongly with young voters.”

The group argues that support for clear and comprehensive regulations could position the Biden administration as a leader on an issue that is becoming increasingly important to a key voting bloc.

The call for action comes amid growing criticism of the current regulatory landscape, which the Chamber describes as uncertain and potentially harmful to investors and innovation.

The letter specifically singles out the actions of Securities and Exchange Commission (SEC) Chairman Gary Gensler, a Biden appointee, whose approach to regulating digital assets under existing securities laws has been the subject of numerous legal challenges.

“Consumers have been through a period of regulatory uncertainty that has devalued the digital assets they hold and limited their utility,”

Bligen said in the letter that recent lawsuits against major cryptocurrency exchanges have been cited as examples of the SEC’s controversial approach to the industry.

The House of Progress welcomed Biden’s 2022 executive order aimed at ensuring the responsible development of digital assets, but expressed disappointment in the administration’s opposition to bipartisan efforts in Congress to create clearer regulatory frameworks.

This includes the recently passed Financial Innovation and Technology for the 21st Century Act and the veto of HJ 109, both of which aim to provide clearer guidelines and improve consumer protections in the cryptocurrency market.

The political implications of regulating cryptocurrencies in the upcoming election are becoming increasingly clear. Former President Donald Trump, the presumptive Republican nominee, capitalized on the current administration’s regulatory ambiguity by reversing his previous stance on cryptocurrencies.

Trump is now positioning himself As a proponent of American tech leadership, he is committed to taking a hands-off approach and ending what he calls a “crackdown” on the industry. This shift has garnered substantial support from cryptocurrency investors and founders.

The Republican National Committee, co-chaired by Trump’s daughter-in-law Lara, recently adopted a proposed policy platform that includes promoting crypto and Bitcoin mining.

The move further solidifies the Republican Party’s embrace of cryptocurrency-friendly policies ahead of the election.

Despite these developments, the House of Progress maintains that President Biden still has a chance to win on the cryptocurrency issue. [Trump] has recently changed its mind on cryptocurrency, you still have an opportunity to provide the regulatory clarity that voters are demanding,” the letter said.

The group suggests that support for comprehensive regulation could not only engage young voters, but also demonstrate leadership on a key technological and economic front.

With reports suggesting that Biden may explore accepting crypto contributions for his re-election campaign and plans to attend a roundtable with congressional leaders to discuss digital assets, there could be signs of a potential shift in the administration’s approach.

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