Biden vs Bitcoin: What’s all at stake as the 2024 US election approaches

• The SEC’s crypto involvement raises questions about partisan regulation in the upcoming election.
• Darius Dale hopes for policies aligned with Biden on budget deficit financing.

Aside from the Bitcoin (BTC) halving, the 2024 US elections are one of the most anticipated events this year.

Despite notable advancements within the crypto industry under President Joe Biden’s administration, regulatory challenges remain.

In particular, the Securities and Exchange Commission’s (SEC) increased involvement in the cryptosphere is raising speculation: will the growing partisan gap in cryptocurrency regulation influence the approach taken in the 2024 elections?

Senator Lummis criticizes the Department of Justice’s stance on Bitcoin

Amid these looming concerns, US Senator Cynthia Lummis recently criticized the Department of Justice (DOJ) for its interpretation of regulations regarding non-custodial software wallets.

Expressing his apprehension for the same, Senator Lummis He took to X (formerly Twitter) and noted:

“I am deeply concerned that the Biden administration will criminalize major tenants of the Bitcoin network and decentralized finance.”

She added,

The dispute arose when the Department of Justice charged developers linked to Bitcoin mixers such as Samourai Wallet and Tornado Cash. The Department of Justice considered these activities to be unauthorized money transmissions.

Senator Lummis’ comment highlights the Justice Department’s inconsistent approach to previous Treasury guidance, which potentially criminalizes core aspects of Bitcoin and DeFi operations.

Darius Dale Perspectives

On the other hand, in an interview with Anthony Pompliano, Darius Dale, CEO of 42Macro, analyzed the impact of various events on the cryptocurrency market and the elections.

Shedding light on the potential influence of President Biden’s administration on Treasury policy, particularly as it relates to how the budget deficit is financed. Dale said,

“The Treasury knows what the budget deficit is going to be, but how they choose to fund it is discretionary.”

This underscores the positive relationship between Secretary Janet Yellen and Joe Biden, and the expectation of policies that align with the administration’s goals.

Stock Market Trends

Historical data indicates that the stock market tends to exhibit strong performance in the run-up to presidential elections. In 2024, this trend will significantly exceed historical averages.

Needless to say, Dale emphasized the importance of understanding the interplay between persistent inflation and Treasury policy responses, stating:

“We know we’re in that discussion process, but the early signs of that discussion process are certainly moving in an aggressive direction.”