President Joe Biden’s re-election campaign has embarked on a significant outreach effort to key figures in the cryptocurrency industry, seeking guidance on "crypto community and crypto policy moving forward," according to sources with direct knowledge of the matter. This initiative marks a notable shift from the administration’s previously frosty stance toward the industry, insiders told The Block.

The engagement, which began about two weeks ago, represents a dramatic change in the Biden campaign’s approach to digital asset leaders. Sources, speaking on condition of anonymity due to the sensitivity of the discussions, revealed that Biden’s re-election team has contacted crypto industry leaders who had previously been rebuffed by the Democratic candidate.

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

This shift in attitude towards digital assets comes shortly after crypto advocates opposed the Biden administration’s plan to veto the repeal of SAB 121, a controversial crypto bill criticized for potentially discouraging financial institutions from providing crypto asset custody services. The administration’s new openness towards the crypto community is seen as a strategic move to address these concerns and engage more constructively with the industry.

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. This is a stark contrast to Trump’s stance as recently as 2021, when he called cryptocurrencies "a very dangerous thing." Like Biden, Trump has seemingly been influenced by advisors with strong ties to the crypto industry, indicating a broader political shift towards embracing 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.

Sources told The Block that the Biden campaign’s overtures have been well-received by many in the crypto sector. However, some industry players remain skeptical, viewing the outreach as "too little, too late."

The Biden campaign’s renewed focus on the crypto industry indicates a growing recognition of the sector's influence and potential impact on the upcoming election. As both major political parties in the U.S. show increased openness to digital assets, the future of crypto policy could become a pivotal issue in the 2024 presidential race.