- SEC’s crypto involvement raises questions about party political regulation in upcoming elections.
- Darius Dale expects a Biden-centric policy on budget deficit financing.
Except Bitcoin [BTC] halving, the 2024 US elections are one of the most anticipated events of this year.
Despite notable progress within the crypto industry under President Joe Biden’s administration, regulatory challenges remain.
In particular, the Securities and Exchange Commission’s (SEC) increased involvement in the crypto sphere is raising speculation: Will the growing partisan divide in crypto regulation impact the approach to the 2024 elections?
Senator Lummis Criticizes DOJ’s Bitcoin Position
Amid these looming concerns, U.S. Senator Cynthia Lummis recently criticized the Department of Justice (DOJ) for its interpretation of regulations regarding non-custodial software wallets.
Expressing her concern in this regard, Senator Lummis took to X (formerly Twitter) and commented:
“I am deeply concerned that the Biden administration is criminalizing the core tenants of the Bitcoin network and decentralized finance.”
She added:
Source: Senator Cynthia Lummis/Twitter
The dispute arose when the DOJ sued developers associated with Bitcoin mixers such as Samourai Wallet and Tornado Cash. These activities were deemed illicit money transmission by the DOJ.
Senator Lummis’ comment highlights the DOJ’s contradictory approach to previous Treasury Department guidance, potentially criminalizing core aspects of Bitcoin and DeFi operations.
Insights from Darius Dale
Separately in an interview with Anthony Pompliano, Darius DaleCEO of 42Macro, discussed the impact of various developments on the crypto market and elections.
This sheds light on the potential influence of President Biden’s administration on Treasury policy, especially regarding how the budget deficit is financed. Dale said:
“The Ministry of Finance knows that the budget deficit will increase, but how they choose to finance the budget deficit is a kind of discretionary power.”
This underlines the positive relationship between Secretary Janet Yellen and Joe Biden, and the expectation of policies that align with the administration’s objectives.
Stock market trends
Historical data shows that the stock market typically shows strong performance in the period leading up to presidential elections. By 2024, this trend will significantly exceed historical averages.
Source: Investing.com
Needless to say, Dale emphasized the importance of understanding the interplay between persistent inflation and the Treasury’s policy responses, claiming:
“We know we’re quite in that debate process, but the early indications of that debate process are certainly moving in an aggressive direction.”