A Heated Zoom Meeting
A virtual confab designed to repair relations between the crypto industry and the Biden Administration turned ugly Thursday morning, underscoring the uphill battle progressive crypto advocates are having trying to glean industry support for the presidential candidacy of Kamala Harris, Fox Business has learned.
The Zoom meeting was hosted by California Congressman Ro Khanna with the goal of mending fences during a contentious election year with a burgeoning industry that has been the target of a massive regulatory crackdown unleashed by the Biden Administration’s financial regulators.
The Stage is Set
With Vice President Kamala Harris now at the top of the ticket, the party is looking to help Harris, its 2024 nominee, win back crypto votes from her GOP opponent Donald Trump, who has recently embraced the industry and vowed to make the U.S. the crypto capital of the world.
A Divided Industry
Around twenty people were on the call, including top Biden administration officials such as Deputy Treasury Secretary Wally Adeyemo, Deputy Director of the National Economic Council Lael Brainard and Deputy White House Chief of Staff Bruce Reed. Kristine Lucius, a senior adviser to Harris, was also present but did not speak, according to three people on the call.
Attendees from the crypto side included billionaire tech entrepreneur and crypto investor Mark Cuban, SkyBridge Capital founder Anthony Scaramucci, venture capitalist and Democratic donor Ron Conway, and a handful of executives from Ripple, Coinbase, Kraken, Uniswap and other crypto firms.
However, instead of finding common ground, industry executives lashed out at White House officials largely over the regulatory assault from agencies like the Securities and Exchange Commission and the Federal Reserve.
Crypto Executives Air Grievances
Crypto executives didn’t hold back on telling the administration reps how much damage they’ve done to the crypto industry and to the Democrat Party with their actions against digital assets.
According to an attendee who wished to remain anonymous, the meeting seemed like a replay of the roundtable Khanna hosted in Washington D.C. last month when industry execs aired their grievances to a senior White House official about the unfair treatment they received under Biden.
Industry Execs Express Frustration
Ron Conway, a venture capitalist and Democratic donor, aggressively expressed frustration that the administration has provided nothing but empty promises to the industry. Conway, an early Coinbase investor, did not immediately respond to a request for comment.
Conway’s frustration was echoed by other industry executives, who expressed disappointment and anger over the administration’s actions against the crypto industry.
Regulatory Assault
The industry executives lashed out at White House officials largely over the regulatory assault from agencies like the Securities and Exchange Commission and the Federal Reserve. The executives argued that the administration’s actions have damaged the industry and hurt its prospects for growth.
The tension in the meeting was palpable, with industry executives and administration officials engaging in a heated exchange over the regulatory treatment of the crypto industry.
Despite the friction, some industry executives remain optimistic that the administration will eventually come around and provide more support for the industry.
Regulators vs. Industry
The regulatory assault on the crypto industry by agencies like the Securities and Exchange Commission (SEC) and the Federal Reserve (Fed) has been a major point of contention between the industry and the administration.
According to an attendee, the industry executives lashed out at White House officials over the regulatory treatment of the industry, with many arguing that the administration’s actions have damaged the industry and hurt its prospects for growth.
A Regulatory Crackdown
The Biden Administration’s financial regulators have unleashed a massive regulatory crackdown on the crypto industry, with the SEC and Fed taking a hardline stance on issues like securities classification and banking access.
The industry has argued that the regulators are unfairly targeting them, and that their actions are stifling innovation and growth in the industry.
Banks and Regulators
Deputy Treasury Secretary Wally Adeyemo told attendees that banks and regulators were not actively trying to cut the industry off from the broader financial system. However, a crypto executive asked for a show of hands of whose firms have been denied banking services because of White House policies, and nearly all the industry representatives raised their hands.
The incident highlighted the deep-seated mistrust and tension between the industry and the regulators, and underscored the challenges that the administration faces in repairing relations with the industry.
The regulatory treatment of the industry is likely to remain a major point of contention between the industry and the administration in the coming months and years.
Industry Execs Express Frustration
Crypto executives expressed frustration and disappointment with the administration’s actions against the industry, with many arguing that the administration’s policies have damaged the industry and hurt its prospects for growth.
According to an attendee, the industry executives lashed out at White House officials over the regulatory treatment of the industry, with many accusing the administration of unfair treatment and hypocrisy.
Mark Cuban’s Criticism
Billionaire tech entrepreneur and crypto investor Mark Cuban was among those who expressed frustration with the administration’s actions. Cuban criticized the administration’s regulatory approach, arguing that it is stifling innovation and growth in the industry.
Ron Conway’s Outburst
Venture capitalist and Democratic donor Ron Conway was more aggressive in his criticism, accusing the administration of providing nothing but empty promises to the industry. Conway, an early Coinbase investor, did not immediately respond to a request for comment.
Conway’s outburst highlighted the deep-seated frustration and anger that many industry executives feel towards the administration’s actions against the industry.
Industry Execs Demand Action
The industry executives demanded that the administration take concrete action to address their concerns and support the industry. They argued that the administration’s words must be backed up by action, and that empty promises are not enough.
The demand for action underscores the industry’s growing frustration and disillusionment with the administration’s policies and approach to regulating the industry.
Administration Officials Respond
Administration officials responded to the industry executives’ criticism and demands, but their responses did little to alleviate the tension and frustration in the meeting.
Deputy Treasury Secretary Wally Adeyemo told attendees that banks and regulators were not actively trying to cut the industry off from the broader financial system. However, this statement was met with skepticism by many industry executives, who pointed out that the administration’s policies have had the effect of excluding many crypto companies from the traditional financial system.
Lael Brainard’s Response
Deputy Director of the National Economic Council Lael Brainard responded to the industry executives’ criticism by arguing that the administration is taking a nuanced approach to regulating the industry. Brainard acknowledged that the administration’s policies may have had unintended consequences, but she argued that they are necessary to protect consumers and maintain financial stability.
Bruce Reed’s Statement
Deputy White House Chief of Staff Bruce Reed attempted to soothe the industry executives’ concerns by promising that the administration is committed to working with the industry to find solutions to the challenges facing the industry. However, Reed’s statement was met with skepticism by many industry executives, who pointed out that the administration’s actions have not matched their words.
The administration’s responses did little to alleviate the tension and frustration in the meeting, and many industry executives left the meeting feeling that the administration is not taking their concerns seriously.
The lack of a clear and concrete response from the administration highlights the challenges that the industry faces in getting the administration to take their concerns seriously and work with them to find solutions to the challenges facing the industry.
Friction and Tension Rise
The friction and tension between the industry executives and administration officials continued to rise throughout the meeting, with many industry executives expressing frustration and disappointment with the administration’s policies and approach.
Tense Moment
A tense moment occurred when Deputy Treasury Secretary Wally Adeyemo told attendees that banks and regulators were not actively trying to cut the industry off from the broader financial system. However, a crypto executive asked for a show of hands of whose firms have been denied banking services because of White House policies, and nearly all the industry representatives raised their hands.
Industry Execs Push Back
The industry executives pushed back against Adeyemo’s statement, arguing that the administration’s policies have had the effect of excluding many crypto companies from the traditional financial system. The exchange highlighted the deep-seated mistrust and tension between the industry and the regulators.
The friction and tension between the industry executives and administration officials underscored the challenges that the administration faces in repairing relations with the industry.
Scaramucci’s Optimism
Despite the tension and friction, SkyBridge Capital founder Anthony Scaramucci remained optimistic that the administration will eventually come around and provide more support for the industry. Scaramucci argued that the meeting was a step in the right direction, but acknowledged that more work needs to be done to build trust and understanding between the industry and the regulators.
The future of the industry’s relationship with the administration remains uncertain, but one thing is clear: the industry will continue to push for greater recognition and support from the administration.
A Divided Industry Stands
The crypto industry is a complex and multifaceted beast, and the tensions and divisions that emerged during the meeting are a reflection of that complexity.
Divergent Views
There are those in the industry who believe that the administration’s policies are necessary to protect consumers and maintain financial stability, while others argue that the policies are stifling innovation and growth.
Optimists and Pessimists
Some industry executives, like Anthony Scaramucci, remain optimistic that the administration will eventually come around and provide more support for the industry. Others, like Ron Conway, are more pessimistic and believe that the administration’s actions will continue to harm the industry.
The divisions within the industry highlight the challenges that the industry faces in speaking with a unified voice and presenting a cohesive message to the administration.
Difficulty in Finding Common Ground
The difficulty in finding common ground between the industry and the administration is a major challenge that must be overcome if the industry is to achieve its goals.
Call to Action
The industry must come together and present a unified front in order to push for the changes that it needs to thrive. This will require a great deal of effort and coordination, but it is essential if the industry is to achieve its full potential.
The future of the crypto industry is uncertain, but one thing is clear: the industry must work together to achieve its goals and overcome the challenges that lie ahead.