With tensions rising over the Biden government’s unrelenting push for onerous rules and crackdowns on digital assets, the US crypto sector is fiercely battling the White House. Based on Charles Hoskinson, the Cardano founder, this anti-crypto posture could very well cost US President Joe Biden another term in office.
Citing several policy meetings, private dinners, and open letters where the community has sought in vain to promote understanding, Hoskinson sharply criticised the government for harbouring a “systematic effort to hurt the crypto industry”. He contends, despite these efforts at participation, authorities stick to their battle against the industry.
Hoskinson complains, warning that this hostile environment has already placed several of his sector contemporaries, including Binance’s former CEO Changpeng Zhao, in jail, “53 million Americans, regardless of their politics and preferences are being painted as soft criminals.”
The Elizabeth Warren Factor
Hoskinson has specifically identified Sen. Elizabeth Warren as the impetus behind the anti-crypto agenda of the government, implying even a covert agreement between her and Biden.Warren, renowned for her strong antipathy to digital assets, according to the Cardano founder, was able to expand her influence inside the Treasury Department, selecting like-minded people who also hate the sector.
Hoskinson contends that this seeming coalition has led to a government strongly biassed against cryptocurrencies, therefore labelling a good number of the populace as “criminals.” For the democratic process as a whole as much as the sector, he sees this as a terrible setback.
Crypto As The ‘Kingmaker’
Hoskinson makes a tantalising forecast among his frustrations: the crypto sector will be the “kingmaker” in next US elections. According to him, the anti-crypto posture of the present government is based on the conviction that its acts would not have any electoral repercussions. Hoskinson, though, is sure the voting public will disproves them.
Hoskinson declares, underscoring the pivotal role that the crypto industry could play in shaping the political landscape:
“If this President loses his job and crypto is the decider, no Democrat running in 2028 will be anti-crypto.”
The Cardano founder sees a time when the next Congress members, senators, and presidents are “crypto natives,” therefore opening the path for a more inclusive and progressive legislative environment. He thinks that in the political sphere the industry’s exponential expansion and growing impact will make it a force to be reckoned with.
How This Impacts The Price Of Crypto
The rising conflicts between the Biden government and the cryptocurrency sector directly affect the larger digital asset market. Shaken investor confidence has resulted in notable volatility and price swings across the main cryptocurrencies.
Following the crackdown and the more political language, Bitcoin and Ethereum have witnessed sharp losses; prices dropped by over 20% in the past month alone.
Smaller altcoins have performed even worse since many investors have avoided riskier assets due of uncertainties about the regulatory scene.
Industry analysts caution that this turmoil could last until a clearer road forward shows itself, either by a softening of the government’s posture on cryptocurrencies or by a change in political leadership.
Featured image from Sky News, chart from TradingView