SEC's Crypto Stance Could Cost Biden Reelection

The US presidential candidates are looking for crypto voters’ support as the elections approach. The Biden administration recently took a 180-degree turn on its stance on digital assets. This change of gears was seemingly fueled by Republican Candidate Donald Trump’s endorsement of digital assets during his campaign.

However, Billionaire Mark Cuban believes the Securities and Exchange Commission (SEC) crackdown on the crypto industry might cost US President Joe Biden the election.

Has The SEC Ruined Biden’s Chance At Reelection?

On Thursday, Mark Cuban criticized the SEC’s chairman, Gary Gensler, during Coinbase’s State of Crypto Summit 2024. The crypto advocate has voiced his opinion on the Commission’s stance on cryptocurrencies and its regulatory approach.

As reported by Eleanor Terrett, the crypto advocate revealed he has talked to US politicians about regulations. Cuban said he has been talking to senators, governors, and congress representatives about the challenges for American crypto companies.

Mark Cuban during the State of Crypto Summit 2024. Source: Eleanor Terrett on X

To him, the SEC’s registration process is the problem that most companies face in the country, naming it “a uniquely American Gary Gensler Problem.”

Cuban has previously called out the US Congress on this matter. The billionaire urged the representatives to create a welcoming legislation that provides clear regulations to the industry. Moreover, he suggested that crypto voters would play an important role in the forthcoming presidential elections.

Similarly, he stated that Gensler’s crackdown on the industry may have jeopardized Biden’s chance of reelection. During Coinbase’s event, Cuban said that Gensler “could literally cost Joe Biden the election” due to the “young voters that own crypto.”

Cuban considers that the SEC’s regulations, led by Gensler, have created a harmful and unwelcoming landscape for legitimate businesses in the sector.

Crypto Industry Slams Gary Gensler

During his presentation, Cuban said that the SEC’s chair should rethink his political career. He stated, “If he has a political career in mind, he’s done.” The critiques towards Gensler didn’t stop there, as Coinbase’s CLO, Paul Grewal, thanked Cuban for “saying the quiet part out loud.”

Similarly, Republican Senator Bill Hagerty slammed the SEC’s chair for the agency’s lack of effort in developing the industry in the US. During a Senate Committee on Appropriations hearing, Senator Hagerty called out Gensler for not prioritizing the innovative areas that need resources.

You’re not prioritizing staff and rule-making for areas that desperately need it. I’m talking about setting in place a constructive set of rules of the road for the crypto industry.

Senator Hagerty calls out SEC’s chairman. Source: Senator Bill Hagerty on X

The Republican senator considers that the SEC’s actions have slowed down the US’s opportunity to be a leader in the sector while other countries and jurisdictions are “setting up rules of the road for their ecosystems.” Instead of pioneering the industry, the sector has been pushed offshore with the agency’s “constant roadblocks and lack of certainty.”

What’s happening is that this innovative industry is finding increasingly pushed offshore. I don’t think that’s the result we want to have here in America.

Many community members agreed with the critiques, claiming that the only solution is to fire the SEC’s chair. Investors consider that the industry won’t be able to thrive in the US as long as Gensler is “fighting” against it.

Ultimately, Senator Hagerty believes that the SEC’s resources would be better allocated if they are used to focus on setting clear rules in place for innovative markets like the crypto industry.