Crypto Markets Primed for a Level Playing Field - Is Change Coming?

The Biden administration's stance on cryptocurrency has created a turbulent environment that has not gone unnoticed by political adversaries. Former President Donald Trump has seized on the administration's lack of clarity and perceived hostility towards the crypto industry to promote his recently established positive view on cryptocurrency. Trump has portrayed President Biden as an opponent of American technological leadership and economic progress. Subsequently he has been very vocal in committing his Presidential Election campaign to encompass the cryptocurrency vote, going so far as to being a key speaker at this year’s Bitcoin Conference in Nashville, USA on July 27.

Despite the current administration's participation in recent high-profile crypto roundtable meetings, its continued support for the SEC's stringent policies has been a pain point of the crypto industry and investment community. The administration's approach gives the appearance of willingness to engage with the crypto industry, possibly as a political or electoral strategy. However, the underlying support for the SEC's actions reveals an agenda that many believe is designed to protect large financial incumbents like Blackrock, JP Morgan, and Citi Bank. These established players, having missed the initial wave of crypto innovation, are now leveraging political allies such as Senator Elizabeth Warren, chair of the Senate Banking Committee, and SEC Chair Gary Gensler to stifle crypto advancements and preserve their business models.

Gary Gensler's SEC has adopted an aggressive stance towards the crypto industry, creating an environment of uncertainty and fear. Ripple CEO Brad Garlinghouse has described the situation as "living in purgatory," citing the SEC's lack of clear guidelines and apparent favouritism in its enforcement actions. The case of former SEC Director William Hinman, who allegedly benefited financially from his position, adds another layer of controversy to the SEC's actions. (Visit https://www.crypto-law.us/video-library/ if you want all the undisputed facts and video evidence on the SEC, William Hinman, Joseph Lubin and others, and why the XRP Community are screaming foul).

A troubling addition to this Administration’s and SEC’s saga is Gensler's connections to Sam Bankman-Fried, the former CEO of the now-bankrupt FTX cryptocurrency exchange. Despite meeting with Bankman-Fried twice, Gensler failed to act on the blatant fraud and conspiracy that eventually led to Bankman-Fried's 25-year prison sentence and US$11 billion fine. This inaction also raises questions about the influence of Bankman-Fried's parents, Joseph Bankman and Barbara Fried, both prominent Stanford scholars. Their academic and social standing may have provided a protective halo around their son's activities, allowing him to misuse customer funds and make illegal political contributions through Alameda Research, his investment firm.

To date, Gensler has failed to provide Congress with documents relating to these meetings with FTX Sam Bankman-Fried (requested documents date back to February 2021), despite Congress threatening to be the first to subpoena the SEC. How can Gensler claim to be the “Cop on the Beat” when he continues to obfuscate, twist and manipulate for his own political benefit, aspirations and probably downright survival at this point. The truth is not on his side.

The indictment against Bankman-Fried revealed that he falsely reported political contributions sourced from stolen customer funds, disguising them as donations from wealthy co-conspirators. This dirty money was used to buy bipartisan influence and sway public policy in Washington. Joseph Bankman and Barbara Fried are accused of using FTX funds to enrich themselves and support their pet causes, including making significant donations to Stanford University.

Joseph Bankman, a leading tax law scholar, took a leave from Stanford to serve as a senior adviser at FTX, directing millions in donations to the university. Barbara Fried, although lacking a formal title at FTX, played a crucial advisory role for her son and funnelled millions to Mind the Gap, a political action committee she co-founded to support Democratic candidates particularly in the 2020 elections that saw Biden take power.

These allegations of self-dealing and political manipulation underscore the incestuous relationships at play, with influential figures using their positions to shape policies and protect their interests. As the Biden administration navigates the crypto landscape, the tension between its public posturing and private actions continues to sow confusion, foster mistrust in government and hinder the crypto industry's growth in the United States.

Trump's recent reversal on cryptocurrency and his efforts to capitalise on the administration's perceived failings underscore a growing political divide on the issue. By courting the crypto vote, Trump positions himself as a proponent of innovation and economic progress. As the Biden administration continues to stumble across this cryptocurrency terrain, the future of innovation in the United States remains unclear, with significant implications for both the crypto industry and the broader economy. The crypto community remains steadfast in their belief in crypto’s future; the question remains… will new political leadership spark what some consider crypto’s inevitable rise.

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