US Politicians Using Crypto. U.S. officials aren’t strangers to utilizing hot-button issues to deflect criticism, even though this is an election year. Cryptocurrency is the newest tool some lawmakers in the United States use to “wag the dog” on material that could hurt their chances of being elected in November.
For example, Republican Party members could publicly oppose the creation of a central bank digital currency (CBDC) or even say that Bitcoin (BTC) is equivalent to financial independence. Despite the widespread opposition to digital assets within the Democratic Party, a vocal minority may decide to link cryptocurrency transactions to the funding of terrorists.
Matt Gaetz
U.S. Representative Matt Gaetz (R-FL) is under investigation for obstruction of justice on charges of “sexual misconduct and illicit drug use,” according to an announcement made on June 18 by the House Committee on Ethics. Gaetz supported past legislation regulating cryptocurrencies, including the FIT21 Act, which stands for Financial Innovation and Technology for the 21st Century. However, he has been somewhat silent on digital assets and their significance to his role as a legislator.
Gaetz proposed a measure on June 25 allowing Americans to pay their federal income taxes using Bitcoin to the Internal Revenue Service (IRS). The Florida lawmaker claimed that his desire to “modernize” the US tax system inspired the bill after he attended the inauguration of El Salvador President Nayib Bukele.
In 2024, Gaetz will seek reelection and compete in a primary election against fellow Republican Aaron Dimmock and, possibly, a Democratic candidate named Gay Valimont. As of the publication date, neither Dimmock nor Valimont seemed to have strongly advocated for nor against crypto.
Donald Trump
In 2022, Trump began to renege on his positions on blockchain and cryptocurrency that he had taken while in office. Shortly after formally declaring his reelection candidacy, Trump started issuing a collection of non-fungible tokens. Despite making a few remarks about Bitcoin in 2023 while competing for the Republican presidential nomination, Trump started to make the technology vital to his campaign in 2024 amidst a slew of high-profile legal and criminal litigation.
The ex-president was fined hundreds of millions of dollars in fraud and defamation verdicts by New York courts. The announcement came as Trump’s first criminal trial was about to begin, charging that he had paid porn star Stormy Daniels using fabricated company records. At the same time, he revealed that his reelection campaign would take cryptocurrency donations.
On July 11, Trump will be sentenced after a jury found him guilty on 34 felony counts. The conviction and possible imprisonment of a sitting or former president is unprecedented in American history. Although it is highly improbable that the judge overseeing the case will quickly sentence Trump to prison following the hearing (presuming he will be sentenced to any jail time), it is entirely out of the question.
These developments may illuminate Trump’s decision to increase his support for cryptocurrency during an election year. His announcement that the United States would mine all Bitcoins if reelected followed his conviction. He also criticized President Joe Biden’s stance on cryptocurrency and is allegedly considering giving a speech at the Bitcoin 2024 conference in Nashville.
Joe Biden: US Politicians Using Crypto
This strategy of using cryptocurrencies to manipulate news may even apply to the present president of the United States. As of this writing, it is unknown whether President Biden’s reelection campaign plans to accept cryptocurrency donations. However, according to reports, he has met with legislative leaders for a roundtable discussion about digital assets and may be reevaluating his approach in light of Trump’s recent remarks.
For his decisions on U.S. support for Israel, the country’s activities in Gaza, and the defense of Ukraine against the Russian military, President Biden has had to account to Congress, the media, and the public. On the home front, many voters may be thinking about abortion rights, fair elections, inflation, and immigration this November. A significant shift in policy would occur if President Biden openly supported digital assets. The president of the United States has spoken out against the energy consumption of digital assets and has vetoed a resolution that would have overturned an SEC rule regarding crypto in banking.
Republicans in Congress and Democratic Senator Elizabeth Warren continue to bear the brunt of the administration’s criticism. The Massachusetts senator has introduced several anti-crypto remarks and bills linking digital assets to illegal funding. Since Gensler took over as head of the SEC in 2021, the agency has initiated multiple enforcement proceedings against cryptocurrency companies.
