Cryptocurrencies are playing a vital role in this year’s election campaigns. While these assets were condemned since their origin, they have certainly come a long way as presidential candidates are embracing them. Similar to former U.S. President Donald Trump, current President Joe Biden could jump onto the cryptocurrency bandwagon. According to reports, Biden’s campaign has been considering the prospects of accepting cryptocurrency for donations.
Key Takeaways:
President Joe Biden's campaign is considering accepting cryptocurrency donations through Coinbase Commerce.
This potential move aims to attract younger voters but has sparked criticism from the crypto community.
The Biden administration's previous stance on cryptocurrencies has led to accusations of hypocrisy.
The President is now in talks with Coinbase Commerce, a platform that also helps in handling Trump’s cryptocurrency donations. The U.S.-based exchange set up Coinbase Commerce to enable merchants to accept hundreds of cryptocurrencies. The firm has been aiding Trump’s donations since May 2024.
Is Biden Trying to Lure Young Voters Through Crypto?
According to the Federal Reserve’s annual household survey, an estimated 18 million Americans used and owned cryptocurrency in 2023. Millennials were seen dominating the charts, with those aged 30 to 44 accounting for the majority of cryptocurrency users.
Generation Z, or those between the ages of 18 to 29, trailed right behind millennials in terms of cryptocurrency usage.
The Biden campaign has been targeting young voters by emphasizing student debt relief. Alongside this, Biden has been employing social media to reach his younger demographic. However, this doesn’t appear to be working for the President, and the inclination towards Trump might be rising. A recent Harvard Youth Poll found Biden topping Trump 45% to 37%. Back in 2020, Biden was leading Trump by 23 percentage points among the same crowd as opposed to the 8 percentage points this year.
Taking into consideration the above data, Biden’s latest foray into the cryptocurrency market could be a strategy to lure young voters. Biden’s rival Trump is certainly ahead of the curve. More recently, the former President decided to handle matters more personally and met with several Bitcoin mining firm executives, with an aim of bolstering this sector of the industry.
Backlash from the Crypto Community
However, this potential move by Biden has attracted significant backlash from the crypto community. Joe Carlasare, a commercial litigator known for his support of Bitcoin, took to X (formerly known as Twitter) to highlight what he sees as a contradiction in the Biden administration’s stance. “Biden’s SEC is suing @coinbase in federal court arguing it doesn’t have a right to exist as an exchange. At the same time, the Biden campaign is preparing to accept crypto donations via Coinbase,” Carlasare wrote.
Pro-XRP lawyer John Deaton, who is running against Senator Elizabeth Warren, amplified Carlasare’s concerns. He criticized the discontinuity in Washington DC politics. Deaton wrote, “Joe’s post highlights the utter dysfunction of Washington DC politics. Senator Elizabeth Warren has proposed a bill written by the Banking Industry that bans the self-custody of Bitcoin and other crypto assets.”
Furthermore, Ryan Selkis, CEO of Messari, a crypto analytics firm, expressed his dismay in strong terms. “I will never be able to look at anyone who donates to this campaign using crypto – before ANY concessions or policy reversals – without spitting venom. Would be an act of complete cowardice, betrayal, and show negative self-worth,” Selkis wrote.
Nic Carter, founder of Coin Metrics, detailed a list of grievances against the Biden administration’s handling of crypto. He accused the administration of bullying banks into dropping crypto clients and engaging in legal battles against major exchanges and token projects. He also highlighted the harassment of Bitcoin miners and the driving of many high-quality projects abroad. “They have the absolute temerity to think we’re gonna donate crypto to the campaign?” Carter questioned in a furious tone.
Reports of Accepting Crypto Donations
Sources close to the Biden campaign revealed that the campaign is in discussions with crypto industry players about accepting crypto donations through Coinbase Commerce. This service allows merchants to accept dozens of cryptocurrencies. Moreover, it is already used by presumptive Republican candidate Donald Trump’s campaign for digital currency contributions.
The move is part of the Biden campaign’s efforts to court crypto-focused voters ahead of a tightly contested election. An anonymous source said the campaign is looking to show that it is not anti-crypto. “They’re paying attention to issues around crypto and are trying to find quick wins to show that they’re supportive of the industry,” the source said, according to The Block report.
Critics argue that this attempt to attract crypto donations is ‘hypocritical’ given the administration’s previous stance on cryptocurrencies. However, the Biden campaign’s engagement with the crypto community appears to be part of a broader strategy to secure every possible vote.
Crypto-backed super PACs have raised significant funds, and their influence is being felt on both sides of the political aisle. According to a report by Public Citizen, citing Open Secrets data, these super PACs have amassed a $100 million war chest.
Despite the backlash, the Biden campaign continues to explore its options. Sources say the discussions about accepting crypto donations are still in the “exploratory” phase. They underscored the importance of this demographic in what is expected to be a closely fought election.
Conclusion
President Biden’s potential move to accept cryptocurrency donations through Coinbase Commerce marks a significant shift in the campaign strategies for the 2024 election. While it aims to attract young voters and demonstrate a supportive stance toward the crypto industry, it has sparked controversy and backlash from various quarters. As the campaign continues to explore this option, it remains to be seen how this strategy will impact the overall voter sentiment and the election outcome.
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