Photo by The 2024 US presidential election is heating up, and the crypto industry is watching closely. In the first debate, President Joe Biden and former President Donald Trump did not mention crypto or regulatory issues, despite the industry’s hopes. Meanwhile, Coinbase is suing the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) for failing to provide regulatory guidance and allegedly pressuring banks to cut ties with crypto firms.
“The @SECGov has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones. While @FDICgov pressured financial institutions to cut off the industry from the banking system.” - Paul Grewal, Coinbase’s Chief Legal Officer
The SEC has filed a lawsuit against Coinbase, alleging that the exchange operates an unregistered securities exchange. Coinbase claims that the SEC has been unwilling to work with the crypto industry to provide regulatory clarity. SEC Chair Gary Gensler has stated that crypto assets are regulated under existing securities laws.
The first presidential debate
Coinbase is not alone in its struggles with regulators. The UK is also grappling with how to regulate crypto firms, with the Labour party promising to make the UK a global hub for crypto-asset technologies. However, the party has not developed a stance on crypto and blockchain technologies, and experts are urging the government to finalize regulations on stablecoins and provide clarity on staking.
The UK parliament building
As the election approaches, the crypto industry is holding its breath, hoping for a Congress and administration that will pass legislation friendly to digital asset businesses. Companies like Coinbase, Ripple, and Andresseen Horowitz are donating millions to political action committees to support candidates who will champion their cause.
Crypto companies donating to political action committees
In the meantime, prediction markets are giving Trump better odds of winning in November, with bets reaching as high as 68 cents. But the crypto industry is not giving up hope, and is pushing for regulatory clarity and a more favorable political environment.
Trump’s odds of winning in November
