President Joe Biden is exploring accepting crypto donations through Coinbase Commerce, which has sparked criticism from various corners of the crypto community. Moreover, industry stakeholders have urged the crypto community to refrain from supporting Biden's campaign.

Conflicting Stances

Joe Carlasare, a commercial litigator known for supporting Bitcoin, took to X to highlight what he sees as a contradiction in the Biden government's stance. "Biden's SEC is suing @coinbase in federal court, arguing it doesn't have a right to exist as an exchange. At the same time, the Biden campaign is preparing to accept crypto donations via Coinbase," Carlasare wrote.

Pro-XRP lawyer John Deaton, who is running against Senator Elizabeth Warren, amplified Carlasare's concerns. He criticized the discontinuity in Washington DC politics. Deaton wrote, "Joe's post highlights the utter dysfunction of Washington DC politics. Senator Elizabeth Warren has proposed a bill written by the Banking Industry that bans the self-custody of Bitcoin and other crypto assets."

He also highlighted the difference between Biden's and Gensler's stances on crypto. Deaton added, "Gary Gensler claims that those same crypto assets constitute illegal securities. But in the meantime, President Joe Biden will accept those illegal securities as political donations."

Industry Outcry

Moreover, Ryan Selkis, CEO of Messari, a crypto analytics firm, expressed his intense dismay. "I will never be able to look at anyone who donates to this campaign using crypto - before ANY concessions or policy reversals - without spitting venom. Would be an act of complete cowardice, betrayal, and show negative self-worth," Selkis wrote.

Furthermore, Nic Carter, founder of Coin Metrics, detailed a list of grievances against the Biden administration's handling of crypto. He accused the administration of bullying banks into dropping crypto clients.

Moreover, he highlighted the administration's engagement in legal battles against major exchanges and token projects. Furthermore, he slammed them for harassing Bitcoin miners and driving many high-quality projects abroad. "They have the absolute temerity to think we're gonna donate crypto to the campaign?" Carter questioned in a furious tone.

Biden Campaign's Position

Sources close to the Biden campaign revealed that the campaign is in discussions with crypto industry players about accepting crypto donations through Coinbase Commerce. This service allows merchants to take dozens of cryptocurrencies.

Coinbase is already being used by presumptive Republican candidate Donald Trump's campaign for digital currency contributions. The move is part of the Biden campaign's efforts to court crypto-focused voters ahead of a tightly contested election.

An anonymous source said the campaign aims to show that it is not anti-crypto. "They are paying attention to issues around crypto and are trying to find quick wins to show that they're supportive of the industry," the source said, according to The Block report.

Strategic Considerations

Additionally, another source indicated that the campaign's focus on crypto has intensified following backlash for striking down a bipartisan push to repeal SAB 121. Experts have argued that the SEC's SAB 121 is a legislative measure that stifles innovation and crypto sector growth in the United States.

Critics claim Biden's attempt to draw crypto donations is 'hypocritical' given the administration's stance on crypto. Biden's campaign wants to secure votes from the crypto community, rivaling Trump's strategy in the same direction.

Crypto-backed super PACs have raised over $100 million, and Democrats have acknowledged their electoral influence on voters.

Despite the backlash, the Biden campaign continues to explore its options. Sources say the discussions about accepting crypto donations are still in the "exploratory" phase. They underscore the importance of this demographic in what is expected to be a closely fought election.