Joe Biden’s Administration Sues Coinbase Yet Needs It For Crypto Donations

4 months ago 48

A recent report reveals that US President Joe Biden’s campaign team is discussing with the industry players the possibility of accepting crypto donations.

Aiming to appeal to the crypto community, the outcome of these efforts could impact the outlook of the upcoming presidential race in November.

Biden’s Crypto Campaign Faces Community Skepticism

Biden’s campaign team reportedly plans to accept crypto donations through the Coinbase Commerce platform. A source familiar with the matter mentioned that the team is focusing on crypto-related issues. They are also seeking fast solutions to demonstrate their support for the industry.

“They are trying to show that they’re not the enemy,” the source shared.

This development is particularly interesting, given that the Securities and Exchange Commission (SEC) sued Coinbase last year. In early June 2023, the SEC accused Coinbase of acting as an unregistered broker since 2019. Moreover, the agency alleged Coinbase for violating securities rules by offering a staking program and unregistered trading services for certain crypto assets.

This move follows another crypto-related campaign from President Biden. BeInCrypto reported that Biden began engaging with crypto industry players in late May as part of his re-election campaign. He aimed to understand the “crypto community and policy moving forward.”

The outreach began in mid-May after the campaign team recognized the potential impact of crypto issues on the presidential election. The re-election team has contacted several crypto experts, including those previously distanced by Biden.

However, these efforts appear insufficient to garner support from the crypto community. Nic Carter, partner at Castle Island Ventures, expressed his skepticism. He noted that Biden’s administration had done several unfavorable policy and enforcement actions toward the crypto industry.

According to Carter, these actions include “bullying” banks into dropping crypto clients and engaging in legal actions against major crypto exchanges. Furthermore, he highlighted the administration’s “harassment” of Bitcoin miners and pushing many high-quality projects and stablecoins abroad.

Carter’s list of grievances continued. He pointed out the administration’s refusal to clarify securities law while enforcing it haphazardly, making DeFi virtually illegal in the US, and creating legal risks for participating in DAOs.

“And they have the absolute temerity to think we’re gonna donate crypto to the campaign?” He wrote.

Indeed, Biden’s administration has long been known for maintaining a stringent approach toward the crypto industry. However, starting last month, the administration has shown a softening stance. This includes the passage of several crypto-focused bills and a sudden approval of spot Ethereum (ETH) exchange-traded funds (ETFs).

Many believe that a shift in Biden’s stance on the crypto industry is influenced by the competition with former president Donald Trump, who is also running for the upcoming presidential election in November. Contrary to Biden, Trump has shown friendly gestures to the crypto industry.

For instance, Trump has pledged to support crypto self-custody, promising to pardon Silk Road’s Ross Ulbricht. He has officially accepted donations in cryptocurrency, which also uses Coinbase Commerce services.

Chances of US Presidential Candidates to Win 2024's Election.

According to the odds on the prediction market platform Polymarket, Trump is leading with a 56% chance to win this year’s presidential election, while Biden only has a 35% chance.

The post Joe Biden’s Administration Sues Coinbase Yet Needs It For Crypto Donations appeared first on BeInCrypto.

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