- Thursday’s presidential debate between President Biden and former President Donald Trump, hosted by CNN, could thrust Bitcoin and crypto into the political limelight.
- Traders on the decentralized prediction market Polymarket are penciling in a 61% chance that Trump mentions Bitcoin or crypto during the debate.
- Trump has recently embraced crypto, accepting crypto donations and calling for more Bitcoin to be mined in the USA, while Biden’s administration has clashed with crypto miners and faced pressure from the industry over increased scrutiny.
Thursday’s presidential debate hosted by CNN could thrust Bitcoin and crypto into the political limelight. The amount of airtime that crypto gets during the debate between President Biden and former President Donald Trump could sway a significant slice of single-issue voters.
Trump’s Embrace of Crypto
The regulatory treatment of digital assets has become a rallying cry for former president Trump, who flipped from Bitcoin skeptic to a “Crypto President” in recent weeks. Yet many wonder whether Trump, alongside the talk, will push for crypto in front of millions of Americans.
Traders on the decentralized prediction market Polymarket are betting that Trump has a 61% chance of mentioning Bitcoin or crypto during Thursday’s debate. So far, the wager has garnered $127,000 in bets.
Trump’s recent embrace of crypto can be traced to a gala last month. At a Mar-a-Lago event for holders of his Trump-themed NFTs, Trump signaled he was “good with crypto” while assailing SEC Chairman Gary Gensler as someone who is “very much against it”.
Since then, the former president has started accepting crypto donations while calling for more Bitcoin to be made in the USA. During the latter appearance, Trump disavowed central bank digital currencies (CBDCs) as well, a digital form of currency that could soon be outlawed in the US.
Biden Administration’s Stance
Meanwhile, the Biden administration has clashed with crypto miners. A year ago, the White House defended a proposal that would’ve put a 30% excise tax on electricity consumed by mining firms because they do not have to pay for the full cost they impose on others.
Hosted by CNN, Trump may leverage the debate as a high-profile opportunity to skewer the Biden administration’s treatment of digital assets. Under current leadership, the industry has faced an uptick in scrutiny that emerged after the crypto exchange FTX collapsed in 2022.
Lawsuits brought against major crypto firms like Coinbase under SEC Chairman Gary Gensler have also ruffled feathers across the industry.
The abrupt approval of spot Ethereum ETFs in May however left analysts speculating that political pressure was a motivating factor behind the last-minute about-face. There are also reports that the Biden administration has recently sought guidance on crypto from industry players.
Still, Biden backed the SEC when he vetoed a bill last month that was set to erase guidance for banks on custodying digital assets. Known as Staff Accounting Bulletin (SAB) 121, Biden wrote he would not support measures that jeopardize the well-being of consumers and investors.
While the SEC’s guidance was ultimately upheld, there was language in Biden’s statement suggesting that he and Trump may agree on one crypto-related matter. “My Administration is eager to work with the Congress to ensure a comprehensive and balanced regulatory framework for digital assets,” Biden wrote, adding that it would help “reinforce United States leadership in the global financial system.”
Conclusion
The crypto community will be closely watching Thursday’s debate to see if digital assets emerge as a substantive issue. With Biden and Trump holding contrasting views, their discussion around this topic could provide valuable insight into the future regulatory environment. Regardless of the outcome, this high-profile event marks another milestone in crypto’s emergence in national politics.
