In the past month, cryptocurrency investors have been enduring tedious days due to shrinking volumes. In the midst of this, President Biden was present at the G7 summit, and on its final day, cryptocurrencies were a hot topic. He exhibited a stance similar to his announcement on May 10, effectively drawing a line in the sand for cryptocurrencies. But what does this mean?
President Joe Biden spoke on the last day of the G7 summit. He had criticized Republicans on May 10 for austerity policies he proposed for the debt ceiling agreement. He even accused them of blocking an $18 billion revenue that could be obtained through stringent taxes on cryptocurrencies. It appears that Biden will continue to use cryptocurrencies as a political argument amidst the debt ceiling dispute. He stated just about half an hour ago;
“I will not accept an agreement that risks food security while protecting rich tax evaders and crypto traders.”
The Republican proposal was leaning towards curtailing some social expenditures, potentially costing Biden votes. However, the Republicans opposed any additional tax burden on cryptocurrencies. Now, Biden has until June 1 to reach an agreement with them to raise the debt ceiling. While doing so, he is also creating a campaign ground for the 2024 elections, accusing Republicans of being crypto-friendly.
Positives for Cryptocurrencies
How can this development be seen as positive for cryptocurrencies? Even though Bitcoin lost $27,000 a few minutes before the announcement was made, Biden cannot predict the consequences of his stance. Currently, with the assumption that all Americans are hostile to cryptocurrencies due to the FTX crash, he aligns cryptocurrencies with the Republicans to garner votes.
However, there are some issues;
- Pushing Republicans on the same side with cryptocurrencies could prevent strict regulations.
- Republicans criticize Democrats for generous donations received from the FTX founder, blaming them for Americans’ losses.
- Presidential elections are next year, and if Republicans succumb to Biden’s pressure and declare crypto-friendly policies, it could be a serious price catalyst for the markets.
- Biden will turn 81 next year, and it doesn’t seem logical for people to entrust him with the presidency until he’s 86, especially as public support has significantly decreased.
- In response to these announcements, Republicans might propose crypto tax exemptions or lower taxes to gain the support of crypto investors, which would help crypto spread in the US.
This stance could cost Biden the votes of crypto-investor constituents and push Republicans to take more positive, crypto-focused steps. Therefore, Biden might be making one of his historic mistakes. The long-spoken subject of “US elections and cryptocurrencies” is evolving from a lofty target to reality. If Republicans grasp the election influence of the crypto-investor voter in the next stage, we may probably see election campaigns featuring Bitcoin technical reviews being read by the best speakers.
