RFK Jr. Becomes the Latest to Promise an End to US Cryptocurrency “Hostility”

Robert F. Kennedy Jr., a longshot candidate in the United States presidential race, has made a promise to put an end to regulatory hostility towards cryptocurrencies if he is elected. Kennedy believes that the threat to “transactional freedom” is a significant issue for Americans leading up to the November election. Speaking at Consensus on May 30, Kennedy stated, “We need sovereignty over our own wallets and transactional freedom. We need a decentralized currency that is transparent as a bulwark against totalitarianism.” He pointed to the Canadian government’s freezing of fiat and crypto assets to “Freedom Convoy” protesters as an example of the need for financial sovereignty. However, Canada’s Federal Court ruled in January that these measures were unreasonable and unconstitutional.
Kennedy also criticized the Biden administration’s hostility towards Bitcoin, claiming that it is driving technology abroad. He argued that U.S. laws have forced crypto companies to move to Switzerland and Singapore, and he wants to ensure that America remains a hub for blockchain technology. If elected president, Kennedy promised to end the hostility towards cryptocurrencies from organizations such as the Federal Reserve, the Securities and Exchange Commission (SEC), and the Federal Deposit Insurance Corporation (FDIC). He wants to regulate cryptocurrencies in a way that protects consumers from malicious schemes and encourages the flow of capital into decentralized currencies.
In contrast, former president and current presidential candidate Donald Trump has pledged to ensure that the future of crypto is centered in the U.S. Kennedy, running as an independent candidate, has a slim chance of winning the presidency. According to May 30 polls from FiveThirtyEight, he is polling at 9.8%, compared to Trump at 41.2% and President Joe Biden at 39.5%. Kennedy’s favorability has also dropped, with nearly 42% of respondents having an unfavorable opinion of him, although this is still lower than Trump’s 53.7% and Biden’s 55.5% unfavorability.
Many in the U.S. crypto industry argue that the SEC has no jurisdiction over digital assets, as Congress has not passed specific laws to grant it such power. They also claim that cryptocurrencies do not meet the SEC’s securities-defining Howey test. Despite this, the SEC has filed multiple lawsuits against crypto firms, alleging securities law violations and illegal operations. The Federal Reserve and FDIC are also seen as unwelcoming to crypto, with the FDIC’s 2023 risk review report describing digital asset risks as “novel and complex,” and the Fed increasing its oversight of banks’ relationships with crypto companies in August. The U.S. presidential election is scheduled for November 5.
Magazine: Crypto exposes sudden rift among Democrats months ahead of election. Additional reporting by Turner Wright.