Charles Hoskinson Accuses Biden of Trying to Kill Crypto: Are There Any Blockchain Democrats?
Has Biden's stance on crypto completely lost him the community's support? Photo by Andrew Harnik/Getty Images.
Key Takeaways
- Charles Hoskinson has attacked President Biden’s pledge to veto a bill aimed at reigning in the SEC’s crypto crackdown.
- The Cardano founder reflects rising criticism of the Democratic leadership among the crypto industry.
- But a few figures in the space continue to support the Democrats.
Some people blame Gary Gensler. Some blame Elizabeth Warren. And some, including Cardano founder Charles Hoskinson, blame President Biden himself. But whatever the root cause, in recent years, crypto has become an increasingly partisan issue.
With a few exceptions, the American crypto and blockchain community now perceives the Democratic party as a threat. And in the run-up to November’s elections, Hoskinson and other influential crypto figures have become more vocal in their criticism.
Charles Hoskinson Slams White House Crypto Policy
In a video posted to Twitter on Wednesday, May 8, Hoskinson claimed to speak for the entire industry. He said: “We’ve had a bit of a disagreement with the current administration about how cryptocurrencies should be regulated.”
The Input Output CEO was referring to the Securities and Exchange Commission (SEC) and its efforts to sue pretty much every major crypto company in the United States. This is what Charles Hoskinson and his peers call “regulation by enforcement.”
He added that “in the absence of laws being passed,” this policy “has cost tens of thousands, if not hundreds of thousands of American jobs, as well as the loss of a trillion dollar plus industry.”
This brings Hoskinson to the reason for his intervention, a recent statement asserting that President Biden intends to veto a Congressional joint resolution that would reign in the SEC’s crypto crackdown.
Because of this, the Cardano founder accused the White House of trying to “destroy the American cryptocurrency industry.”
He added: “A vote for Biden is a vote against cryptocurrency.”
Blockchain Leaders Lobby for Change
Hoskinson’s comments represent his most pointed condemnation of the Biden administration yet. But he isn’t the only industry figure who has spoken out against the Democratic administration.
Some of the party’s fiercest critics include Messari CEO Ryan Selkis and the Winklevoss twins.
Meanwhile, the likes of Brian Armstrong and Brad Garlinghouse have taken a more neutral stance.
Throwing their support and financial heft behind candidates from both parties who are willing to denounce the current status quo, the Coinbase and Ripple CEOs have helped turn the crypto lobby into a heavyweight political fundraiser.
However, figures in the space who openly support the Democratic leadership are far and few between.
Pro-Democrat Crypto Leaders
One of Biden’s only notable supporters in the crypto sector comes from a surprising place: Donald Trump’s former communications director Anthony Scaramucci.
Scaramucci, who founded the crypto hedge fund SkyBridge Capital, is, however, far from a true blue Democrat.
Like many people who might otherwise be natural Republicans, his lukewarm endorsement of Biden stems from concerns over Trump’s unpredictable leadership style.
While he predicted that a Trump administration would be better for crypto regulation in the short term, “in the long term, he’s going to create havoc and unpredictability in the legal system,” Scaramucci warned.
He added: “I would rather take the regulatory fight with people like Elizabeth Warren and people like Gary Gensler over that macro fight.”
These days, though, Scaramucci is the exception to the rule. But things weren’t always this way.
Sam Bankman-Fried and the Anti-Trump Vote
During the last election cycle, Sam Bankman-Fried was the second-largest donor to Democratic politicians.
Although he has claimed he spent an equal amount of dark money funding Republican campaigns, SBF’s feelings about Donald Trump are well-known. The now-imprisoned FTX founder told his biographer Michael Lewis that he considered paying the former President $5 billion not to run for a second term.
Like Scaramucci, SBF’s support for Biden was more about opposing Trump than anything else.
Reflecting a mood that can be felt across the American electorate, it looks as if the crypto community is home to its share of anyone-but-Trump voters too.
Growing Bipartisan Support for Favorable Crypto Regulation
To be clear, crypto policy needn’t be a partisan issue.
In the end, the joint resolution that Biden has vowed to veto passed with bipartisan support after 21 Democrats broke rank to vote in favor of the Bill.
In the House especially, a generation of liberal, centrist lawmakers contest the notion that Democrats universally support the SEC’s approach to regulation under Gary Gensler. And the GOP isn’t without its own crypto hawks, Senator Roger Marshall being foremost among them.
Glimmers of cross-party support for sensible legislation can be seen in both houses of Congress, nowhere more than in the unlikely alliance between senators Cynthia Lummis and Kirsten Gillibrand.
One is a pro-life conservative who takes a hard line on immigration and the “radical left”. The other supports universal healthcare, the legalization of cannabis and expanding abortion rights.
The American crypto community is a broad church and certainly includes many people who will vote Democrat even if they believe another four years of Biden will hurt the sector.
Neither do Hoskinson, Selkis or other industry big shots speak for everyday investors, even if their arguments find broad support among a limited circle of super-wealthy crypto bros.
Cardano Criticism Countered by 2 Major Upgrades, According to Charles Hoskinson
