Mon, July 15

Joe Biden’s Crypto Donation Proposal Sparks Debate in the Crypto Community

US Crypto Community Divided Over Biden's New Tax Reporting Rules Market News
  • Following Trump’s lead, President Biden is exploring crypto donations through Coinbase Commerce.
  • Pro-XRP lawyer criticizes Biden’s acceptance of crypto donations despite conflicting regulatory views.

US President Joe Biden is considering accepting cryptocurrency donations via Coinbase Commerce, which has created criticism within the crypto community. This decision follows former President Donald Trump’s recent adoption of crypto donations for his campaign, marking a significant shift in Biden’s stance, as he had previously criticized Trump for his pro-crypto stance.

Coinbase Commerce, a service that allows merchants to accept various cryptocurrencies, is already facilitating donations for Trump’s campaign. Trump’s initiative to accept cryptocurrencies like Bitcoin and Ethereum began in May, fulfilling his pledge to incorporate digital currencies into his campaign finance strategy.

However, Biden’s current exploration of crypto donations appears to be part of a strategy to appeal to crypto-focused voters as the 2024 presidential elections approach. However, this has not been well-received by all, with some industry stakeholders advising the crypto community to avoid supporting Biden’s campaign.

Reactions from Prominent Figures in the Crypto Industry

Prominent voices in the crypto space have expressed their disapproval. John Deaton, a pro-XRP lawyer, criticized the inconsistency in Washington DC’s political landscape. Deaton pointed out that while Senator Warren is advocating for legislation that would ban the self-custody of Bitcoin and other cryptocurrencies, President Biden is considering accepting these same assets as campaign contributions. He also noted the contradiction between Biden’s position and that of SEC Chairman Gary Gensler, who deems many crypto assets as illegal securities.

Ryan Selkis, CEO of the crypto analytics firm Messari, also voiced his strong disapproval. Selkis condemned the idea of donating to Biden’s campaign using cryptocurrencies without prior policy changes, labeling such actions as cowardly and a betrayal.

As the Biden administration continues its efforts to engage the crypto community, these developments highlight the ongoing tension and various opinions within the sector regarding the role of digital currencies in politics.

A journalism graduate who is passionate about writing loves to dance and travel currently starts exploring blockchain technology.