Democratic Presidential Hopeful Voices Support for Cryptocurrency Amid Regulatory Scrutiny

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Mon, 25 Sep 2023, 05:25 PM
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Democratic Presidential Hopeful Voices Support for Cryptocurrency Amid Regulatory Scrutiny

Robert F. Kennedy Jr. criticizes government interference in the digital asset industry, citing concerns about negative impacts on major banks and recent banking failures.

Robert Kennedy Jr. in Urbana, IL. Wikimedia/Daniel Schwen

Wed, 03 May 2023, 17:19 pm UTC

Democratic presidential hopeful Robert F. Kennedy Jr. recently voiced his strong support for the digital asset sector and criticized what he perceives as a "crypto crackdown." Kennedy has previously expressed his opposition to the implementation of a U.S. central bank digital currency (CBDC).

Following his formal declaration of candidacy in the 2024 presidential race, Kennedy criticized the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) for overstepping their authority in their aggressive stance towards cryptocurrencies, which he believes negatively impacts major banks.

Kennedy cited Ellen Brown's article, "How the War on Crypto Triggered a Banking Crisis," as evidence that government interference in the digital asset industry contributed to the high-profile failures of Silicon Valley Bank, Silvergate Bank, and Signature Bank in March. The legitimacy of these claims is still under debate, with former Congressman Barney Frank asserting that the closures were designed to send a warning against cryptocurrencies, while a New York regulator has refuted these allegations.

As Kennedy intensifies his focus on the digital asset sector in his bid to defeat President Joe Biden in the upcoming election, his remarks highlight the increasing political relevance of cryptocurrencies. His disapproval of a CBDC mirrors concerns raised by Florida Governor Ron DeSantis, another potential presidential contender, who has warned of potential abuses of power and privacy risks associated with the technology.

Kennedy's comments prompted the Federal Reserve to clarify that its new FedNow payments system is neither a digital currency nor a substitute for cash, which Kennedy seemed to confuse with a CBDC.

While some Democratic politicians, such as Elizabeth Warren, have criticized the digital asset industry, others, like New York City Mayor Eric Adams, have openly supported it. However, the Republican Party has demonstrated a greater willingness to endorse cryptocurrencies, with politicians like Ted Cruz and Tom Emmer championing the cause. The latter candidate has accused the FDIC of exploiting instability in the banking sector to eliminate legal digital asset entities in the U.S., while Cruz criticized CBDCs last week for threatening the value of Bitcoin.

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