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In a recent San Francisco fundraiser, former US President Donald Trump declared his strong support for the cryptocurrency industry, positioning himself as the "crypto president" in his 2024 presidential campaign.
The fundraiser, held at tech venture capitalist David Sacks' home, saw Trump raise $12 million, with prominent figures such as Chamath Palihapitiya and former Trump ambassador Trevor Traina in attendance, according to a Reuters report.
Trump's Stance on Crypto Regulation
Trump's comments come at a time when the crypto industry faces significant regulatory scrutiny. His promise to end regulatory crackdowns and support innovation in digital assets contrasts with the current administration's focus on regulation and consumer protection. He criticized the current administration's approach to regulating digital assets and promised to halt what he described as the "Biden-Gensler crusade against crypto" if elected.
Trump has also previously said that "With your vote, I will keep Elizabeth Warren and her goons away from your Bitcoin."
Also big if true. Trump says he will help to protect #Bitcoin and cryptocurrencies from the likes of @SenWarren and other anti-crypto politicians. He says he won’t allow the creation of CBDC’s [in the USA].
— DΛVID 🟢 (@DavidShares) May 26, 2024
Trump has made a lot of promises over the years that he didn’t keep.… pic.twitter.com/ToXYwvCI3n
His position reflects a broader Republican strategy to appeal to the burgeoning crypto community, which has grown increasingly frustrated with the regulatory environment under President Joe Biden.
Trump's comments come just days before the Republican National Committee (RNC) officially incorporated support for cryptocurrency innovation into its policy platform. The document outlines the party's commitment to ending what it calls an "unlawful and unAmerican Crypto crackdown" and opposing the establishment of a central bank digital currency (CBDC). The platform also includes pledges to defend Bitcoin mining and ensure the right to self-custody and private transactions of digital assets.
House to Vote on Overriding Biden's Veto of SAB 121
An ongoing debate regarding the Securities and Exchange Commission's (SEC) accounting rule SAB 121, highlights the complexities of the current regulatory landscape.
In May 2024, the US House voted to repeal SAB 121, which restricts traditional banks from offering crypto custodial services. However, President Biden used his veto power to uphold the rule, citing the need for stringent oversight in the crypto space.
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As the House prepares to vote on potentially overturning this veto on Wednesday, sources indicate that achieving the necessary two-thirds majority to repeal SAB 121 is unlikely. The decision could significantly impact the market's perception of the Biden administration's stance on digital assets.
Industry Reactions and Political Contributions
The crypto industry has responded positively to Trump's stance, with several high-profile investors and executives, including those from Coinbase and the Winklevoss twins, showing support.
This backing highlights a significant shift in political contributions and influence from the tech and crypto sectors towards Trump's campaign. Notably, Trump's campaign and an affiliated political action committee have also started accepting crypto donations, further cementing his commitment to the industry.
The Biden administration has taken a more cautious approach to digital assets, focusing on consumer protection and regulatory oversight. In 2022, President Biden signed an executive order aimed at ensuring responsible development of digital assets. This led to increased guidance and rules from the SEC and the Commodity Futures Trading Commission (CFTC) to address risks in the crypto ecosystem. The administration's stance has been one of balancing innovation with consumer protection, contrasting sharply with Trump's pro-crypto rhetoric.
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