The Democratic Party is increasingly embracing cryptocurrency, signaling a significant shift in the political landscape. Former Ohio Representative Tim Ryan has observed this growing trend, which is reshaping the party’s stance on digital currencies and their regulation.

SEC’s Skepticism And Congressional Responsibility

Gary Gensler, Chairman of the Securities and Exchange Commission (SEC) appointed by US President Joe Biden, has been a vocal critic of cryptocurrency. He strongly opposed the FIT21 bill after it passed in the House, reflecting his cautious stance on crypto regulation. Industry lobbyists argue that Gensler’s influence has swayed many Democratic lawmakers, who often rely on party-appointed regulators for expertise on complex financial issues.

Rising Democratic Support For Cryptocurrency Regulation

Cryptocurrency, once viewed with skepticism by many Democrats, is now gaining traction within the party. The US House of Representatives recently approved the FIT21 bill with a notable majority of 279 to 136, sending it to the Senate for further consideration. Notably, 71 Democrats voted in favor of the bill, highlighting a substantial shift in the party’s attitude towards crypto regulation.

Total crypto market cap at $2.38 trillion on the daily chart: TradingView.com

Ryan commented on this development, indicating that his Democratic colleagues are now more inclined to engage with crypto issues rather than deferring entirely to the Biden administration and financial regulators.

However, Ryan emphasizes that Congress, not regulators, holds the constitutional responsibility to set long-term policy directions. He argues that while Gensler’s tenure is temporary, lawmakers have a duty to consider the broader, enduring implications of cryptocurrency regulation.

With Gensler expected to leave office in June 2026, Ryan suggests that Congress should take a proactive role in shaping the nation’s approach to digital currencies.

Bipartisan Support And Future Implications

The growing acceptance of cryptocurrency is not confined to the Democratic Party. Former US President Donald Trump, a presumptive Republican nominee, has declared himself the “crypto president,” advocating for improved domestic Bitcoin mining practices and actively using crypto in his financial endeavors.

The Biden administration’s evolving stance on crypto is also noteworthy. Despite previous skepticism, the administration plans to accept campaign donations in cryptocurrency, reflecting a pragmatic approach to leveraging emerging financial technologies.

So, the Biden administration and the SEC spend years trying to crush crypto and even sue Coinbase…But now, they’re scrambling to set up crypto donations through Coinbase?

Wow, they really do think Americans are stupid. pic.twitter.com/PTdSs2OFu1

— Dan Gambardello (@cryptorecruitr) June 13, 2024

Meanwhile, Dan Gambardello, founder of Crypto Capital Venture, highlighted the irony in the administration’s shift, noting on X (formerly Twitter) that the Biden administration and the SEC have spent years attempting to undermine cryptocurrency, even going so far as to sue Coinbase, but now, “they’re scrambling to set up crypto donations through Coinbase?”

Featured image from Attucks Adams, chart from TradingView