Though it is an election year in the United States, politicians are not new to using topical issues to divert attention away from less-than-favorable media coverage. Cryptocurrency seems to be one of the latest methods some U.S. lawmakers employ to ‘wag the dog’ on information that could potentially harm them when voters go to the ballot boxes in November. 

For members of the Republican Party, this could mean making a popular statement against issuing a central bank digital currency (CBDC) or equating cryptocurrencies like Bitcoin (BTC) with financial freedom. Some Democrats might choose to associate crypto transactions with the financing of terrorism or break ranks with many party members and come out in support of digital assets.

Matt Gaetz

On June 18, the U.S. House of Representatives Committee on Ethics announced that it would be investigating Florida Representative Matt Gaetz for obstruction related to allegations of “sexual misconduct and illicit drug use.” Gaetz has previously backed legislation favoring crypto regulation, including the Financial Innovation and Technology for the 21st Century (FIT21) Act. However, he has rarely made public statements suggesting digital assets were central to his position as a lawmaker.

On June 25, Gaetz introduced a bill that could require the Internal Revenue Service (IRS) to accept Bitcoin payments for U.S. citizens filing their federal income taxes. The Florida lawmaker said the legislation resulted from his visiting the inauguration of El Salvador President Nayib Bukele, claiming that he wanted to “modernize” the tax system in the United States.

Gaetz is running for reelection in 2024 and will face off against fellow Republican Aaron Dimmock in an August primary and potentially Democratic candidate Gay Valimont in the general election. Neither Dimmock nor Valimont appeared to have taken a strong pro- or anti-crypto position at the time of publication.

Donald Trump

In 2022, former U.S. President Donald Trump started backtracking on his previous statements on cryptocurrencies and blockchain while in office. Trump officially announced his reelection campaign and, within a few weeks, launched a non-fungible token collection.

Though Trump made some statements concerning Bitcoin as he faced off against potential challengers for the Republican presidential nomination in 2023, he began making the technology central to his campaign in 2024 amid several high-profile criminal and civil lawsuits.

In New York, judges ordered the former president to pay hundreds of millions of dollars in defamation and fraud judgments. As a jury was preparing to deliberate in his first criminal trial over falsifying business records to cover up a payment to porn star Stormy Daniels, Trump announced his reelection campaign would accept crypto contributions.

Related: Pro-crypto US voters turning to Trump, but don’t trust either party

A jury ended up convicting Trump on 34 felony counts, and he will be sentenced on July 11. This marks the first time in U.S. history a current or former president has ever been convicted of a felony and faces potential prison time. Though experts have suggested that the judge presiding over the case is unlikely to send Trump to prison immediately after the hearing — assuming he will be sentenced to any time behind bars — it’s also not impossible.

These events could help explain why Trump seems to be doubling down on crypto in an election year. After his conviction, he announced plans for all BTC to be mined in the United States if reelected, attacked President Joe Biden’s record on crypto, and is reportedly exploring speaking at the Bitcoin 2024 conference in Nashville.

Joe Biden

The current U.S. President may be no exception to this tactic of spinning the news using cryptocurrency. Though it’s unclear at the time of publication if President Biden’s reelection campaign intends to accept crypto donations, he has reportedly attended a roundtable with congressional leads to discuss digital assets and may be considering a shift in strategy based on Trump’s recent statements.

Unlike Trump, who currently has no responsibilities when it comes to governing, President Biden has had to answer to lawmakers, the media and the public for decisions concerning support for Israel and the country’s actions in Gaza, and U.S. involvement in the defense of Ukraine against the Russian military. Domestic issues, including abortion rights, free and fair elections, inflation and immigration, could also be at the forefront of many voters’ minds in November.

President Biden’s public endorsement of digital assets would be a significant policy change. The U.S. President has vetoed a resolution overturning a U.S. Securities and Exchange Commission (SEC) rule on crypto in banking and made statements criticizing digital assets’ energy consumption. Still, much of the criticism of the administration targets SEC Chair Gary Gensler and Democratic Senator Elizabeth Warren.

The Massachusetts senator has made many anti-crypto statements and introduced legislation associating digital assets with illicit finance. Gensler has been heading the SEC since 2021, leading to the regulator filing several enforcement actions against crypto firms.

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