President Joe Biden’s campaign team is raising concerns about the financial support that his Republican competitors are receiving from the wealthy crypto industry. A widely circulated screenshot revealed that Biden’s campaign team is urging supporters to donate in order to keep up with the large donations being received by the Trump campaign. Trump’s campaign has reportedly raised $76 million in April, with a significant portion coming from donations at a Florida gala. This call for financial support from Biden’s team comes as his campaign faces stiff competition from Republican candidates who are gaining support from the crypto industry.
Biden’s request for donations is reminiscent of a similar plea from Democratic senator Elizabeth Warren, who is now competing with a Republican pro-crypto lawyer for her seat in Massachusetts. Data from the Federal Election Commission shows that the pro-crypto lawyer, John Deaton, raised $1.36 million in the first quarter, surpassing Warren’s $1.1 million. Some of Deaton’s donors include prominent figures in the crypto industry such as Anthony Scaramucci and Brad Garlinghouse. This shift in support towards Republicans from the crypto industry comes after years of enforcement actions against the industry from the Democrat-led SEC, as well as efforts from the White House to hinder Bitcoin mining.
The White House has been actively involved in shaping regulations around crypto, with recent promises to veto legislation that would repeal SEC rule SAB 121 that restricts regulated banks from offering crypto custody services. Despite these challenges, both the House and Senate have passed resolutions with Republican support seeking regulatory clarity for the crypto industry. Former President Donald Trump, who previously criticized Bitcoin, has now embraced the industry and started accepting crypto-based campaign donations. Trump’s campaign is looking to build a “crypto army” to counteract Elizabeth Warren’s anti-crypto stance, with official filings showing his personal ownership of crypto assets.
In October 2023, Trump disclosed owning between $250,000 and $500,000 in crypto, signaling his shift towards the industry. The House of Representatives is set to vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), which aims to provide regulatory clarity for the crypto industry. The act is expected to foster a more supportive environment for crypto and innovation. The political landscape surrounding crypto has become increasingly partisan, with Republicans gaining support from the industry in response to previous enforcement actions and regulation hurdles faced by the sector. Biden’s campaign team’s call for donations highlights the growing influence of the crypto industry in shaping political campaigns and decisions.
