US 2024 Elections: Critical Crypto Issues Explored

The upcoming presidential elections in the United States have brought forth a profound difference in crypto policies between the Democratic and Republican parties. The presumptive nominees, Joe Biden for the Democrats and Donald Trump for the Republicans, both illustrate this divide with their contrasting views on cryptocurrency. 
 
Trump has recently shifted his stance from being anti-crypto to pro-cryptocurrency. In May 2024, he urged crypto supporters to vote for him while pledging to counter restrictive Democratic policies. This change of heart is a significant departure from his previous statements, where he criticized Bitcoin and other cryptocurrencies' value as "highly volatile and based on thin air." 
 
On the other hand, Biden's re-election campaign appears to be taking a more industry-friendly approach despite having strict policies initially. His executive order in 2022 demonstrates this shift by promoting responsible development through policy and regulation. 
 
In terms of donations, Trump became the first U.S. presidential candidate to accept crypto donations via Coinbase Commerce on May 21st. There are also reports that suggest Biden’s campaign might follow suit soon. 
 
Interestingly, Trump has profited from non-fungible tokens (NFTs) sales, which earned him between $100k and $1 million, according to financial disclosure reports in April 2023. Arkham Intelligence suggests there's about $14 million worth of crypto under Trump's control as of June 2024. 
 
Biden maintains that he does not hold any Bitcoin but remains neutral towards Central Bank Digital Currencies (CBDC). His executive order encourages exploring CBDCs; however, it doesn't explicitly call for their creation. 
 
Contrarily, Trump vehemently opposes issuing CBDCs, stating that he would never allow such technology. 

 
The Biden administration proposed taxing cryptocurrency mining due to high energy consumption at a rate of 30%. Meanwhile, Trump advocates that all Bitcoin mining should take place within U.S. borders, dubbing it "the last line of defense" against central bank digital currency (CBDC). 
 
The U.S. Securities and Exchange Commission (SEC) approved Bitcoin exchange-traded funds (ETFs) in January 2024. After initially preparing to reject Ethereum ETF's, the SEC reversed its decision amidst Trump's pro-crypto statements. 
 
Biden vetoed a bill on May 31 that would have overturned SEC staff bulletin SAB121, which outlines strict custodianship rules for institutions dealing with customers' crypto assets. He branded it as an attempt by Republicans to undermine consumer protection efforts. 
 
There are several pieces of legislation pending that could reshape the crypto industry. Democratic Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act aims to impose stricter regulations preventing crime and money laundering within the sector. 
 
On the other hand, the Financial Innovation and Technology for the 21st Century Act, sponsored mainly by Republican lawmakers, aims at creating clearer compliance guidelines for crypto companies, along with new duties around cryptocurrency regulation under the CFTC and clarifying SEC powers. 
 
These contrasting views between Biden and Trump illustrate not just their personal stance towards cryptocurrencies but also highlight significant ideological differences within their respective parties when it comes to regulating this emerging technology.