Biden campaign ramps up crypto industry outreach in surprising tone 'shift'

President Joe Biden’s re-election campaign has begun reaching out to key figures in the cryptocurrency industry, seeking guidance on "crypto community and crypto policy moving forward," sources with direct knowledge of the matter told The Block. The outreach, which includes calls to key industry leaders Biden's administration previously rebuffed, marks a significant "shift" from Biden's previous arms-length dealings with the industry, according to several sources, who spoke on the condition of anonymity.

The engagement effort, which started about two weeks ago, comes as Biden's camp increasingly recognizes the impact crypto-related issues could have on a presidential race that is likely to be quite close, the sources said, citing the sensitivity of the discussions, which are ongoing. As part of that outreach, the re-election team has called several crypto experts, including some crypto industry players Biden rebuffed on previous occassions, one source said.

The Biden campaign did not immediately respond to The Block’s request for comment outside of normal business hours.

This shift in demeanor toward digital assets comes shortly after crypto advocates opposed the Biden administration’s plan to veto the repeal of SAB 121, a controversial crypto legislative measure criticized for potentially discouraging financial institutions from providing crypto asset custody services.

The change in tone also follows the Trump campaign’s May 21 announcement that it would accept cryptocurrency donations, along with former President Donald Trump’s recent pro-crypto and anti-CBDC (Central Bank Digital Currency) remarks at the 2024 Libertarian national convention.

That's in stark contrast to Trump's stance as recently as 2021 when he called cryptocurrencies " a very dangerous thing ." Like President Biden's campaign, former President Trump also had a team that seems to have moved the presumptive GOP nominee towards a more positive stance on digital assets. 

“They have very smart and capable people advising on that front, and you’ve seen some of the results of that and will see more in the coming months,” said a source within Trump’s inner circle with ties to the crypto industry.