Tech
Biden Administration Strives to ‘Kill Cryptocurrencies,’ Cardano Founder Says
The conflict between the cryptocurrency industry and the Biden administration has escalated dramatically. The allegations point to President Biden actively seeking to undermine the expanding crypto space.
Charles Hoskinson, the founder of Cardano, has emerged as a vocal critic, stating that the administration’s actions significantly threaten cryptographic innovation.
Cardano Founder Claims Biden Administration Threatens Cryptocurrencies’ Existence
At the center of the dispute is a non-binding resolution passed by the US House, which has sparked a heated dispute between cryptocurrency supporters and the Biden camp.
This resolution, labeled HJ Res. 109asked the Securities and Exchange Commission (SEC) to withdraw a staff bulletin regarding digital asset custody accounting.
Despite gaining bipartisan support, the White House has indicated its intention to veto the resolution, citing concerns about investor protection and the stability of financial markets.
Meanwhile, Hoskinson hasn’t held back in expressing his concerns, characterizing the administration’s position is a real attack on the American cryptocurrency industry.
In a series of fiery tweets and livestreams, he urged cryptocurrency holders to view support for Biden in the upcoming election as a direct threat to the industry’s survival.
He even went so far as to label the administration’s actions as “Operation Chokepoint 2.0,” evoking memories of an earlier crackdown on financial services.
Other figures in the crypto community, besides Hoskinson, have expressed their apprehensions about the Biden administration’s regulatory agenda. Ryan Selkis, founder of Messari, did it dubbed fears that a second Biden term could provoke a wave of restrictive measures.
He said that these measures could affect various aspects of the crypto ecosystem, including Bitcoin miningdecentralized finance (DeFi), unregistered securities and stablecoins.
Growing concerns under the Biden administration
Several key figures within the cryptocurrency community have also expressed disappointment and concern with the Biden administration’s stance on cryptocurrency regulation.
Rahul SoodCEO of Irreverent Labs, e Amir Haleem, The founder of Helium, for example, took to Twitter to express his frustrations. They said voting for Biden has become even more challenging for those who prioritize the interests of the cryptocurrency industry.
Their feelings were fueled by a recent dispute over a Personnel Accounting Bulletin (SAB) issued by the SEC, which its chairman Gary Gensler defended as incontrovertible.
However, critics, including Republican Patrick McHenry, have accused Gensler of trying to stifle the cryptocurrency industry, and some even labeled the SEC’s decisions as “arbitrary and capricious.”
Meanwhile, the growing importance of cryptocurrency holders as a constituency has not gone unnoticed. In particular, a study from the Blockchain Association revealed that 90% of those who own digital assets want to be involved in the upcoming elections.
Many express concern that excessive regulation could stifle innovation. About 45% of respondents identified as Democrats, 11% said they were independents, and 43% identified as Republicans.
Former President Donald Trump took the opportunity to appeal to cryptocurrency holders by positioning himself as something more crypto-friendly compared to the current administration.
Despite his previous skepticism towards cryptocurrencies during his presidency, Trump now emphasizes his support for the cryptocurrency industry. During a special event held yesterday at his Florida estate, he criticized Gensler and the Democratic Party for their hostility towards cryptocurrencies.
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