A tense meeting between crypto leaders and Biden administration officials highlighted the growing divide between the crypto industry and the Democratic Party.
The Clash
A virtual meeting hosted by Congressman Ro Khanna aimed to bridge the gap between the two sides. The goal? To help Vice President Kamala Harris win back the crypto vote, which has shifted towards the Republican Party.
However, the meeting quickly turned into a heated exchange of grievances. Crypto executives, including big names like Ripple’s Brad Garlinghouse and Coinbase’s Paul Grewal, expressed their frustration with the Biden administration’s “regulatory assault” on the crypto sector.
“Regulatory Assault”
Executives accused the administration of damaging the digital asset industry and hurting the Democratic Party’s chances with crypto voters. They pointed to the denial of banking services to many crypto firms as a result of White House policies.
When Deputy Treasury Secretary Wally Adeyemo claimed that banks and regulators weren’t trying to shut out the crypto industry, nearly every crypto executive raised their hand to indicate they had been denied banking services.
A glimmer of hope?
Despite the heated exchanges, some participants expressed optimism. Anthony Scaramucci, founder of SkyBridge Capital, said it was encouraging that high-level officials took the time to listen to the industry. Coinbase’s Chief Legal Officer, Paul Grewal, suggested that the focus should now shift to the Harris campaign and what it’s willing to do to position her as a “strong new face for crypto.”
The Bottom Line
The meeting exposed the deep divide between the crypto industry and the Biden administration. While some hope remains for a future where the two sides can work together, the current regulatory environment is a major source of frustration for crypto executives.
