Biden Will ‘End Up Killing It’—Serious Crypto Warning Could Spell Chaos For The Price Of Bitcoin And Ethereum As Debt Ceiling Deal Reached
05/28 update below. This post was originally published on May 26
BitcoinBTC and ethereum—the two largest cryptocurrencies—have exploded back into the limelight this year amid fears the U.S. is waging a secret war on crypto.
The bitcoin price has bounced back from late 2022 lows of around $16,000 per bitcoin in the aftermath of the FTX crypto exchange implosion, pulling the ethereum price with it, even as a leak revealed a Democratic plan for a crypto crackdown.
Now, after Elon Musk issued a surprise crypto warning this week, U.S. presidential hopeful Ron DeSantis has warned the Biden administration has “it out for bitcoin” and could end up “killing it” completely.
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“I think that the [Biden] regime, clearly they have it out for bitcoin, and if it continues for another four years, you know, they’ll probably end up killing it,” DeSantis, currently governor of Florida, said this week on his White House campaign Twitter Spaces broadcast.
“Bitcoin represents a threat to them,” DeSantis said. “They’re trying to regulate it out of existence.”
Last year, U.S. president Joe Biden issued an executive order instructing various federal agencies to develop a comprehensive plan to regulate the red-hot bitcoin, ethereum and crypto market.
05/26 update: Biden and Republican House speaker Kevin McCarthy have reached a deal to over the country’s looming $31.4 trillion debt ceiling, bringing to an end months of uncertainty for markets, it was reported by Reuters.
Early details of the deal suggest it would “suspend the debt limit through January of 2025, while capping spending in the 2024 and 2025 budgets, claw back unused Covid-19 relief funds, speed up the permitting process for some energy projects and includes some extra work requirements for food aid programs for poor Americans,” according to Reuters.
“It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone,” Biden then posted to Twitter, adding, “the agreement protects my and Congressional Democrats’ key priorities and legislative accomplishments.”
McCarthy was quoted by The Hill saying he expects to post the legislative text on Sunday May 28, and stage a floor vote on Wednesday 31 May.
Earlier this month, Biden said he would not agree to a deal on the debt ceiling that benefited crypto traders. “I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly … 1 million Americans,” Biden said during the G7 meeting in Japan.
The subsequent bitcoin price crash that wiped away around $2 trillion in value from combined bitcoin, ethereum and crypto market, propelled crypto to the top of the regulatory agenda and has forced many U.S. crypto companies to look overseas for friendlier jurisdictions.
DeSantis, who’s challenging former U.S. president Donald Trump—who in 2019 said he’s not a fan of bitcoin, ethereum and other cryptocurrencies—claimed bitcoin is a threat to the “central planners” in the Biden administration who want to control everything.
“You have every right to do bitcoin,” DeSantis said. “The only reason these people in Washington don’t like it is because they don’t control it.”
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DeSantis, who’s currently polling far lower than Trump, attacked what he called the “the bureaucracy” that has led to what was referred to on the space as “operation choke point 2.0″—the idea that U.S. regulators, banks and politicians are waging a secret war on crypto and crypto companies.
Alongside DeSantis, former pharma entrepreneur Vivek Ramaswamy has also thrown his hat into the Republican primary ring with an endorsement of bitcoin, calling the 2024 election a “referendum of fiat currency.” Elsewhere, Democratic presidential candidate Robert F. Kennedy Jr. backed bitcoin in his campaign launch, vowing to defend bitcoin against “invasive surveillance.”
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