Cathie Wood Predicts Consequences of Biden Administration’s Crypto Crackdown
ARK Invest's Cathie Wood warns that the Biden Administration's sudden escalation against the crypto industry could have political consequences.
In a recent interview with economist Arthur Laffer, Wood points out that the approximately 50 million Americans who own Bitcoin and other crypto assets are closely watching the recent moves from the White House.
President Biden’s crypto crackdown
The Biden Administration’s crackdown includes SEC confrontations with the US-based crypto companies Genesis, Kraken, and Coinbase.
The administration also closed crypto-friendly banks Silvergate and Signature Bank, with former Congressman Barney Frank stating that Signature Bank was specifically shut down to send a message on crypto.
Negative language on crypto in the economic report
Wood adds that the administration’s actions and language in a new economic report suggest President Biden fears crypto and does not support American businesses involved in the industry.
The President’s annual economic report, which came out a few days ago, went after crypto “big time.” The report saw no role for crypto, which indicates that the industry may be viewed as a threat.
Crypto as a national election issue
According to Wood, young people, especially, will view the government’s approach to crypto as a critical issue that could affect the 2024 national elections.
She believes that the potential lawsuit involving Coinbase could bring the issue of whether Americans should be able to freely trade and hold crypto assets all the way to the Supreme Court.
Clarity for the crypto industry
Despite the SEC’s apparent intention to sue the US-based crypto exchange Coinbase, Wood believes this could ultimately bring clarity to the industry.
She states that Coinbase has been preparing for the lawsuit and is willing to take it all the way to the Supreme Court. However, in the interim, the issue is expected to become a national election issue, as young Americans view it as a crucial matter.