Former President Donald Trump has begun accepting crypto donations for his re-election campaign, making him the first US Presidential candidate to adopt digital assets for funding.
According to a May 21 statement:
“This addition to President Trump’s already groundbreaking digital fundraising operation marks the first time a major party Presidential nominee has embraced cryptocurrency for donations.”
The website’s available information showed that crypto users could donate in different digital assets, such as Bitcoin, Ethereum, XRP, Cardano, Dogecoin, Shiba Inu, and others.
Crypto has become a pivotal topic in the lead-up to the November elections, with former President Trump and President Joe Biden expected to be the primary candidates for their respective parties.
The candidates have taken a diverging stance toward the emerging industry, with Trump openly supporting crypto and promising to foster its growth through proper regulation. Trump stated:
“Democrats, like Biden and his official surrogate Elizabeth Warren, continue to believe only government has the answers to how our nation leads the world.”
However, recent events suggest that the Biden administration may shift its long-standing hardline stance against the space.
Ethereum ETF
On May 20, reports surfaced that the US SEC might approve spot Ethereum exchange-traded funds (ETFs) — a stark pivot from earlier expectations.
Bloomberg Intelligence Analyst Eric Balchunas noted that the SEC’s turnaround might have political motivations, a view shared by many in the crypto community.
Variant Fund chief legal officer Jake Chervinsky said:
“If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process. That doesn’t mean it won’t happen. It means approval could signal a major shift in US crypto policy.”
Congressional development
Last week, US lawmakers from both parties united to overturn the SEC’s Staff Accounting Bulletin 121 (SAB 121) resolution despite President Biden’s stated intent to veto the bill.
Several crypto stakeholders have argued that the bulletin was controversial, as SAB 121 required financial institutions to safeguard customer assets and keep them on their balance sheets. Notably, the American Bankers Association (ABA) pointed out that the regulation made it difficult for banks to act as spot Bitcoin ETF custodians.
This rare bipartisan event precedes the upcoming Senate vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), widely considered the most significant piece of crypto-specific legislation likely to become law.
The FIT21 bill will establish a comprehensive regulatory framework for the digital assets industry in the US. The bill has widespread industry support from key players, including Coinbase, Kraken, and Andreessen Horowitz.
Moreover, the bill will establish a baseline for classifying digital assets as securities or commodities. It expands the CFTC’s authority to register and regulate digital commodities and requires the FTC and SEC to jointly issue rules for assets not otherwise classified.
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