The cryptocurrency industry is projected to have nearly $100 million to allocate for the upcoming presidential election. Will Biden’s potential veto of the crypto bill lead to his downfall?
President Joe Biden rejected a crypto bill that had gained approval from both the House and the Senate and had widespread backing from the cryptocurrency community. This decision is seen as the latest move by the president to create friction with the crypto community, prompting industry representatives to dedicate millions to remove him from office in the upcoming election.
If the bill had been enacted, it would have revoked US SEC’s Bulletin 121, which aimed to mandate financial institutions holding crypto to include it in their balance sheets. Biden attributed the effort to overturn Bulletin 121 to Republicans, even though some Democrats also voted in favor of the bill.
Biden crypto bill veto “protects consumers and investors”
The White House posted the following announcement by Biden:
My Administration will not support measures that jeopardize the well-being of consumers and investors. Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation.
There has been a lot of criticism towards Biden’s decision to veto the crypto bill, despite the opposition from eight US Congressmen and one Senator. The crypto newsletter BowTieBill cautioned that people’s support for Biden might indicate their true stance on crypto, suggesting that voting for Joe Biden could mean dishonesty about their crypto investments.
Many voices echoed this sentiment, portraying Democrats as a significant threat to the future of cryptocurrencies. Bitcoin supporter Jason Williams suggested that Biden’s veto of the crypto bill “will cost him more than he realizes,” especially considering his opponent’s favorable stance on crypto.
The crypto industry strikes back
As of March 4, 2024, the crypto industry had contributed about $59.2 million toward the 2024 election cycle. The independent fundraising group Fairshake reportedly spent $10 million in the California primary. The initiative convinced the electorate not to support Katie Porter, a California progressive Democrat running for Senate. Porter had been highly skeptical of crypto.
Two other groups, Protect Progress and Defend American Jobs, have spent significant money on congressional races during this cycle.
