• Biden campaign in talks to accept crypto donations through Coinbase Commerce
• Trump campaign already accepting crypto donations via Coinbase Commerce
• Biden team exploring ways to court crypto-focused voters ahead of election
Recent reports indicate that President Biden‘s re-election team is exploring the idea of accepting cryptocurrency donations through Coinbase Commerce. This comes just weeks after Donald Trump began accepting crypto donations for his own campaign. Accepting digital currency could help Biden appeal to crypto-focused voters and tap into the deep pockets of wealthy crypto donors. However, it also risks aligning him with an industry that remains controversial in many political circles.
Background on Crypto Donations in US Politics
Cryptocurrencies have emerged as a significant new source of campaign contributions in recent years. Here’s an overview of how they are reshaping political fundraising:
Trump’s Embrace of Crypto Donations
- In April 2022, Trump’s campaign began accepting crypto donations through Coinbase Commerce.
- This allowed supporters to contribute using popular cryptocurrencies like Bitcoin and Ethereum.
- The move was seen as an effort to court younger, tech-savvy donors in the run-up to 2024.
The Rise of Crypto-Focused Super PACs
- Crypto-backed Super PACs have raised over $100 million so far, according to OpenSecrets data.
- These independent spending groups allow politically active crypto holders to pool funds.
- Major examples include the Crypto Freedom PAC and the Web3 Forward PAC.
Growing Crypto Presence Among Politicians
- Many politicians have invested in cryptocurrencies or accepted related campaign contributions.
- This includes high profile figures like Ted Cruz, Rand Paul, and Eric Adams.
- However, crypto remains controversial, with politicians like Elizabeth Warren criticizing the industry.
Biden Team Explores Accepting Crypto Donations
According to sources familiar with the discussions, Biden’s campaign team is actively considering accepting crypto donations through Coinbase Commerce. Key details:
- The talks are still exploratory in nature. No final decision has been made.
- This could help Biden tap into the wealth of crypto-focused donors.
- It would also allow Biden to showcase a pro-crypto stance after facing backlash from the industry.
- Crypto donations could end up playing a key role in a close 2024 election.
Potential Benefits and Risks
Accepting crypto donations offers potential upsides but also some risks for the Biden campaign:
Possible Benefits
- Appeal to younger, tech-savvy voters who own crypto.
- Access donations from crypto holders looking to spend down gains.
- Neutralize Trump’s fundraising advantage among the crypto community.
Potential Risks
- Ties campaign to a controversial, lightly regulated industry.
- Most Americans remain unfamiliar with cryptocurrencies.
- Regulatory crackdown could hurt public perception of crypto donors.
Conclusion
With crypto becoming a major force in political fundraising, it is unsurprising to see Biden exploring this option. However, accepting cryptocurrency also brings reputational risks at a time when the industry faces growing public skepticism. Biden will have to weigh these factors carefully as his campaign determines how to engage with the crypto community ahead of the 2024 race.
