CoinDesk reports:
The airing of the debate between President Biden and former President Donald Trump on Thursday could have a significant impact on a large portion of single-issue voters when it comes to cryptocurrency.
Regulatory treatment of digital assets has become a rallying cry for former President Trump, who has shifted from being a skeptic of Bitcoin in recent weeks to being the “cryptocurrency president.” However, many are wondering whether Trump will push for cryptocurrency in front of millions of Americans during the debate.
At the time of writing, traders on the decentralized prediction market Polymarket anticipate a 61% chance of Trump mentioning Bitcoin or cryptocurrency during Thursday’s debate. The bet has garnered $127,000 in wagers so far, with other words Trump might say into the microphone.
Hosted by CNN, the debate could be a high-profile opportunity for Trump to criticize the Biden administration’s handling of digital assets. Under the current leadership, the cryptocurrency exchange FTX faces increasing scrutiny after folding in 2022.
Lawsuits brought forth by Gary Gensler, the chairman of the U.S. Securities and Exchange Commission appointed by Biden, against major cryptocurrency companies like Coinbase have also angered the entire industry.
Trump’s recent support for cryptocurrency can be traced back to a recent event. At a Mar-a-Lago event held for Trump-themed NFT holders, Trump expressed his favor for cryptocurrency while criticizing Gensler as “very anti.” Since then, the former president has started accepting cryptocurrency donations and called for more Bitcoin to be “made in America”. In a later appearance, Trump also denied central bank digital currencies (CBDCs), suggesting they would soon be declared illegal in the U.S.
Meanwhile, the Biden administration has clashed with cryptocurrency miners. A year ago, the White House defended a proposal that would impose a 30% consumption tax on mining companies’ electricity consumption, as they “do not have to pay the full costs imposed on others.”
However, the sudden approval of an Ethereum spot ETF in May has led analysts to speculate that political pressure was a motivating factor behind a last-minute change of heart. There are also reports that the Biden administration has recently sought guidance from industry participants on cryptocurrency.
Despite this, Biden vetoed a bill last month aimed at lifting guidance on banks holding digital assets, in favor of the U.S. Securities and Exchange Commission. In a statement called “Staff Accounting Bulletin” (SAB) 121, Biden wrote that he “will not support measures that harm the welfare of consumers and investors.”
While the guidance from the U.S. Securities and Exchange Commission ultimately received support, Biden’s statement contains some language suggesting that he and Trump may find common ground on a cryptocurrency-related issue.
Biden wrote, “My administration is eager to work with Congress to ensure that digital assets have a comprehensive, balanced regulatory framework.” He added that this would “help strengthen America’s leadership in the global financial system.”
Edited by Ryan Ozawa.
