In an unexpected change of position, Joe Biden's government is taking a 180° turn in the policy it has maintained, until now, regarding the bitcoin (BTC) sector and other cryptocurrencies. According to the most recent statements, after a long time acting against the ecosystem, now the White House shows willingness to develop balanced regulation for bitcoin. He expresses this in a document where he establishes a position on the FIT21 bill or HR 4763, also known as the Financial Innovation and Technology Act for the 21st Century. As the official letter points out, although the president does not agree with the approval of the new regulation, he «is eager to develop balanced legislation for the ecosystem.» «The Administration opposes HR 4763 because it would affect the regulatory structure of digital assets in the United States,» the letter states, where it also points out its interest in working with Congress and «guaranteeing a comprehensive and balanced regulatory framework for digital assets.» digital. According to the White House, more time will be needed to work with Congress on digital asset legislation. In that sense, they express their desire to promote «the responsible development of digital assets and innovation in payments and help reinforce the leadership of the United States in the global financial system.» This is an objective in favor of avoiding stagnation of the cryptocurrency ecosystem in the country, a situation that did not previously seem to worry the government. However, still have a series of Questions about the proposed law to consider which does not offer sufficient protections for consumers and investors who engage in certain digital asset transactions. The above occurs in a context where the United States House of Representatives is about to hold a vote in which The aforementioned legislation is expected to be approved, with bipartisan support. According to media reports, at least eight Democrats in the House of Representatives are openly in favor of FIT21 and They make efforts to recruit more support through a letter to their colleagues. “As Democrats, we feel this is a crucial opportunity to regulate digital asset markets,” they wrote in an internal memo. As analysts indicate, the chances of approval of the law in the House of Representatives they are very tall. And so far, the Biden administration has not expressed his intentions to apply a veto. An intention that he did express a few days ago with a resolution approved in the Senate, which would allow banks to operate with cryptocurrencies.
The political issue behind the change of position
This change in position has been interpreted as an important signal by prominent figures within the ecosystem. Among them is Mike Novogratz, CEO of Galaxy Digital, who testified on the subject. «There are more cryptocurrency owners in the United States than dog owners. “We have 85 million people who own cryptocurrencies and many of them are single-issue voters,” the executive said, drawing attention to the high level of bitcoin adoption among the American population. In this way, everything indicates that the proximity of the elections is one of the reasons behind the turn taken by the Biden government, who aspires to be re-elected next November. As BitcoinDynamic reported, data from a recent survey indicates that The issue of cryptoassets is very important for voters, as more than 50% of voters fear that excessive regulation will suffocate the cryptocurrency ecosystem. These are data that show the interest of Americans in bitcoin and that have also caused a change of position in Donald Trump, the other presidential candidate who also rejected the sector. Against this background, Novogratz said he is excited to observe the change that will occur in the US, as soon as there is regulatory clarity around cryptocurrencies. «It has been a fascinating week. “New narratives are forming and the odds are changing,” he wrote in X, referring to the new government stance. This is a favorable expectation that has even made several companies in the ecosystem express their intention to return to the United States. Circle, the company, already did it behind the USDC stablecoin, announcing last week the move of its headquarters from Ireland, back to the continental US. A plan that Galaxy Digital also announced through a presentation to apply as a corporation in Delaware.