Nearly a dozen cryptocurrency executives joined a video chat with top White House officials on Thursday, raising a number of concerns about how the current administration has treated the business.
Resetting Relations with Democrats
Their wider goal was to reset relations with Democrats after a rough few months by positioning cryptocurrency as a bipartisan issue—both for the remainder of the 2024 campaign and into 2025, regardless of whether Donald Trump or Kamala Harris wins.
Opportunities for Improvement in Crypto Regulation
“It’s not too late,” Coinbase Global’s chief legal officer (COIN) Paul Grewal told Yahoo Finance following the call. “There’s certainly an opportunity, even over the next 90-some days, and in this legislative session, for there to be a real reset moment.”
Crypto Industry Pushes for Better Relations
The gathering is the latest move by both sides to normalize relations. According to one attendee, the crypto executives spoke the most at the virtual table, while White House officials primarily listened.
Concerns About Regulation and the SEC
The CEOs described what they saw as a lack of consistent regulation of cryptocurrency, and in one case, even suggested the ouster of SEC Chair Gary Gensler, a longtime adversary of the industry.
Key Figures in Thursday’s Meeting
According to individuals familiar with the matter, Democratic Rep. Ro Khanna of California convened Thursday’s meeting, which included a number of key Biden administration aides, including National Economic Council director Lael Brainard and White House deputy chief of staff Bruce Reed.
Vice President’s Involvement in the Conversation
According to sources familiar with the matter, Harris had a voice in the conversation, as did Kristine Lucius, the vice president’s domestic policy advisor.
Prominent Attendees from the Crypto Industry
Among those in attendance were Skybridge founder and managing partner Anthony Scaramucci, Ripple CEO Brad Garlinghouse, Circle CEO Jeremy Allaire, Kraken CEO David Ripley, and others.
Confidentiality of the Meeting
The White House declined to release a synopsis of Thursday’s meeting, claiming it was confidential.
White House Statement on Digital Assets
White House assistant press secretary Robyn Patterson told Yahoo Finance that President Joe Biden has offered a comprehensive approach to digital assets and that “the Biden-Harris administration will continue meeting with a range of stakeholders and working with members of Congress to develop safeguards that are necessary to harness the potential benefits and opportunities of crypto-asset innovation.”
Crypto Community’s Regulatory Wishlist
The wish list presented Thursday looks to be generally consistent with what the larger crypto community has been advocating for months: more favorable regulation from the next US president.
Key Requests from the Crypto Community
The list includes tax cuts and stablecoin laws, as well as rules determining which crypto tokens are securities and so subject to SEC examination.
Pushback Against SEC’s Enforcement Actions
The cryptocurrency community also wants the SEC and its chairman, Gensler, to stop an aggressive crackdown on the market through enforcement actions and lawsuits.
Industry-Friendly Court Decision on Ripple Labs
On Wednesday, a federal court issued what looked to be an industry-friendly decision in one of those significant lawsuits. Ripple Labs Inc., the XRP issuer, was sentenced to pay a $125 million civil penalty for fraudulently selling its XRP coin to institutional investors. The amount was significantly less than the SEC had requested.
