Reports & Analysis

How will Biden win the US election affect bitcoins and digital currencies?


It is not unreasonable to expect that Joe Biden, the current Democratic candidate in the 2020 presidential election and former First Vice President Barack Obama, will appoint ministers in his cabinet who are familiar with the field of digital currencies if he takes the presidency. On the other hand, it is possible that with the change of White House tenants, more regulatory frameworks in the field of digital currencies will be developed and implemented.

Decrypt website at an essay He described in detail the possible consequences of Biden’s entry into the White House on the digital currency industry.

Recently, on July 15, we witnessed a surprise event on Joe Biden’s Twitter account. That day, a message appeared on the politician’s Twitter account that not only mentioned bitcoin, but also suggested to Biden followers that twice as much bitcoin as they send him would be sent to their account.

But this tempting offer was the work of a hacker who was able to infiltrate Joe Biden and more than 130 other prominent figures, including politicians, celebrities and major digital currency industry activists.

This incident led Biden to mention Bitcoin for the first time in an announcement. He announced the day after his Twitter account was hacked:

I do not have any bitcoins and I will never ask you to send me bitcoins. However, if you want to help me defeat Trump and end his presidency, you can use this link.

How will Biden win the US election affect bitcoins and digital currencies?

As expected, the link would lead the user to a place where only dollar donations would be accepted, not bitcoins.

The fact of the matter is that Biden does not have an explicit position on bitcoin. He had never mentioned Bitcoin before his account was hacked, and has so far ignored media requests to take a stand on it. But earlier in the 2016 campaign, a committee called “Draft Biden 2016” was set up to support Biden and receive public donations in the form of bitcoins. However, Biden did not run in the election, and the committee was unable to formally contact him.

But Donald Trump, the current president of the United States and a fierce rival of Biden, had previously tweeted:

I’m not a fan of bitcoin and other digital currencies.

Trump also has a passive stance on bitcoin and digital currencies, but organizations under him have not underestimated the influence of digital currencies.

On the other hand, one should not overlook the fact that Biden has much more important concerns for his presidential campaign; From the Corona virus and the current economic situation to Trump’s controversial domestic and foreign policies.

However, Biden’s takeover of the US presidency could have a significant impact on the growth and maturity of the digital currency industry around the United States and even around the world. In the following, we will take a look at the attitudes of potential Biden cabinet members towards digital currencies, as well as the views of several industry leaders.

Biden Cabinet

Kamala Harris, Biden’s first deputy prime minister, current senator and former California attorney general, has not yet publicly stated his position on bitcoin and digital currencies. However, his team includes Ryan Montoya, a former Sacramento Kings Deputy Chief Technology Officer who is one of the NBA’s foremost teams in digital technology and currencies. Is known. Montonia is currently Harris’s program director, and if elected, Biden will be one of the possible candidates for his post.

In addition, at least one of the most prominent figures in the field of digital currencies has praised Harris and said that he can cope with bitcoin. Tim Draper, a well-known investor, has previously said in an interview with the media that he has witnessed Harris’s activities in California politics and thinks he can understand the hidden potential of digital currencies. Draper says:

I think Harris is an intelligent man who can get acquainted with the concepts of digital currencies. It is better to get started faster and if he does not have a wallet, get him a bitcoin wallet.

How will Biden win the US election affect bitcoin and digital currencies?
Kamala Harris

Andrew Yang is another Biden campaign figure who can undoubtedly be considered a staunch supporter of Bitcoin. Yang, who previously worked on a platform for Americans’ basic global income, is an optimistic entrepreneur with new ideas in the Blockchain and digital currencies. A former Democrat candidate for the presidency, he has even said he would launch a blockchain-based voting system if he wins the US presidency. After withdrawing from the presidential race, he started a non-profit foundation called Humanity Forward to promote ideas based on digital currencies; Ideas include the Global Base Income Platform (UBI) and Data Dividend.

In addition, Yang noted the government’s inability to accurately audit financial statements as digital currencies progressed. Finally, if Biden enters the White House and Young can make room for himself on his management team, he can play an effective role in developing and enforcing standard regulatory frameworks for digital assets.

Yang said in 2019:

Increasingly, digital currencies and assets now represent a significant portion of economic value and activity, and are rapidly overtaking possible government responses. Developing a national framework for overseeing these assets is now deadlocked, as several federal agencies and agencies claim that legislation in this area falls within their jurisdiction.

Sen. Elizabeth Warren, a candidate in the US presidential primary, is one of the possible candidates for the US Treasury Department. Warren is known for his strong criticism of Wall Street. He has been instrumental in the Obama administration in establishing the Office of Consumer Financial Protection. Warren’s public comments on digital currencies are more focused on scams than regular users by coin operators (ICOs). He said in an interview with Yahoo Finance in 2018:

I’m deeply concerned about harming ordinary consumers.

He said in a Senate hearing in 2019:

One of the challenges we face in advancing digital currencies is how to integrate the constructive aspects of these emerging phenomena with consumer protection policies.

Warren wrote in a tweet after the Senate hearing on the Libra project, Stablecoin Facebook:

Facebook is very powerful, and unfortunately, when it comes to protecting private information, it has a long history of violations. We must hold Facebook administrators accountable, and we must not let them go any further in accessing user data.

Accelerate the development of regulatory frameworks

Lael Brainard, the current top executive of the Federal Reserve, is another possible candidate for the US Treasury Department.

How will Biden win the US election affect bitcoins and digital currencies?
لیال برینرد

Drew Hinkes, a Blockchain attorney at Carlton Fields, told the media that Brainard’s appointment could benefit digital currencies. Hinks says:

Given Brinerd’s relative familiarity with China’s blockchain technology and his interest in national digital currencies, his appointment as Treasury Secretary could likely be a positive development for the digital currency industry. The establishment of a new management team in the White House may fill some of the key positions in oversight bodies that are vacant in the current administration. Of course, this could also be a double-edged sword and increase pressure on digital currency activists. However, policy facilitation is not far off. Finally, with more resources, we can expect the Biden Cabinet to agree with regulators on the issuance of digital currency-based financial instruments.

CoinTracker co-founder Chandan Lodha says Biden’s proposed tax plan could affect digital currency holders earning more than $ 400,000 a year. The impact on the holders of digital currency earnings of more than $ 1 million will be greater than the others. “Luda ​​said in an interview with the media:

The Biden tax plan seeks to increase taxes on those whose annual income is more than $ 400,000. The most effective of this tax plan in the field of digital currencies is targeted at high-income activists and can increase their tax rate from 37% to 39.6% (for capital gains from the digital currency market). The tax rate for those with an annual income of more than $ 1 million will increase to 39.6 percent, and the base tax rate will be applied to inherited digital currencies.

Luda adds:

Of course, this plan does not have much impact on the majority of digital currency activists. Those whose annual income exceeds $ 400,000 pay slightly more in taxes. Only those earning more than $ 1 million a year will face a significant tax increase on their digital currencies.

In an interview with the media, Juan Aja Aguinaco, co-founder of Shyft Network, said that Biden’s ability as US President to influence the field of digital currencies depends on several factors. These include the Democrats’ success in controlling the Senate majority, as well as the composition of the US Supreme Court. In any case, Biden’s entry into the White House could be a positive development for the digital currency industry, Aguinaco said. He notes that Biden’s stance on digital currencies will be more proactive, and that we have seen in the past that a number of prominent members of the Democratic Party have spoken of the need for regulatory frameworks in this area. Aguinaco adds:

With the support of the House and Senate, Biden may take a more tolerant approach to digital currencies than Trump. In addition, he may even take a search approach to facilitate the development of China-based blockchain solutions.

Aguinaco points out that experience has shown that Democrats are usually more willing to protect the rights of end users. He points to Democrat Sen. Maxine Waters asking Facebook to halt the development and establishment of the Libra digital currency. The request was made so that Congress would have the opportunity to understand the implications of this digital currency. Aguinaco adds:

Therefore, its defense and unsustainable growth can be the focus of future laws in the field of consumer protection.

“Aguinaco concludes:

It goes without saying that Alexandria Ocasio-Cortez, a prominent and influential figure in the Democratic Party of America, has already taken a stand against corporate-controlled currencies and praised common currencies. Although his negative stance has focused more on the stabilization of coins, I would not be surprised if one day Democrats take a conservative stance on digital currencies instead of a practical one.

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