The timing 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.
The handling of digital assets regulation has become a rallying call for former President Trump, who has shifted from being a Bitcoin skeptic in recent weeks to being the “crypto 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 expect a 61% chance that Trump will mention Bitcoin or cryptocurrency in Thursday’s debate. So far, bets totaling $127,000 have been placed on this, along with other things Trump could say into the microphone.
Hosted by CNN, the debate could provide Trump with a high-profile opportunity to criticize the Biden administration’s approach to digital assets. Under the current leadership, the cryptocurrency exchange FTX faced increasing scrutiny after its collapse in 2022.
Lawsuits filed 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 gathering for Trump-themed NFT holders at the Mar-a-Lago estate, Trump expressed his enthusiasm for cryptocurrency while criticizing Gensler as “very anti.” Since then, the former president has begun accepting cryptocurrency donations and has called for more Bitcoin to be “mined in America.” In a subsequent appearance, Trump also denied the central bank digital currency (CBDC), which is expected to be declared illegal in the U.S. soon.
Meanwhile, the Biden administration has clashed with cryptocurrency miners. A year ago, the White House defended a proposal to levy a 30% consumption tax on mining companies’ electricity consumption, as they “do not have to pay the full cost 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 the last-minute change of heart. There are also reports that the Biden administration has sought guidance from industry participants on cryptocurrency recently.
Despite this, Biden vetoed a bill last month aimed at rescinding guidance on banks holding digital assets, in support 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 consumer and investor welfare.”
While the SEC’s guidance eventually received support, Biden’s statement included 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 will “help strengthen America’s leadership in the global financial system.”
Edited by Ryan Ozawa.
