President Joe Biden’s re-election campaign has begun significant outreach to the crypto industry, as reported by The Block. This represents a shift from his previous stance, with efforts starting around two weeks ago to seek advice from key figures in the crypto sector on community and policy matters. Sources close to the discussions told The Block that this marks a substantial change in the administration’s approach to digital assets.

This outreach follows backlash against the Biden administration’s plan to veto the repeal of SAB 121, a contentious legislative measure criticized for potentially hindering financial institutions from offering crypto custody services. The administration's move acknowledges the growing importance of the crypto industry and its potential influence on the upcoming closely contested presidential race.

Biden’s new approach comes after former President Donald Trump announced his campaign would accept crypto donations and made pro-crypto and anti-Central Bank Digital Currency (CBDC) comments at the 2024 Libertarian National Convention. This underscores the increasing political significance of digital assets, with both major candidates seeking support from the crypto community.

Trump’s campaign, positioning him as a pro-crypto candidate, contrasts with his earlier skepticism. By accepting crypto donations, including Bitcoin and Ethereum, Trump's strategy aims to attract a demographic increasingly interested in digital assets, aligning with his broader political messaging against perceived government financial control.

Reactions to Biden’s outreach within the crypto industry have been mixed. Some view it as a positive step towards integrating digital assets into the broader financial system, while others see it as a late attempt to win over pro-crypto voters. Nonetheless, this engagement indicates a growing awareness of the sector’s potential electoral impact and the need for supportive policies.

As the 2024 presidential election nears, the role of crypto is becoming central, with Biden and Trump both engaging with the crypto community. This engagement is likely to influence future digital asset regulation and the broader financial landscape in the US.

Ripple has highlighted the 2024 election as crucial for the crypto industry, contributing $25 million to Fairshake, a federal super PAC supporting pro-crypto candidates, illustrating the increasing political involvement of major crypto firms.

Additionally, a survey by Public Opinion Strategies found that US voters who own crypto favor Trump over Biden by 9%, highlighting the growing importance of crypto policy in the election. Senator Cynthia Lummis, a pro-crypto legislation advocate, sees recent congressional victories as promising for the sector. Many in the industry share this optimism, viewing the upcoming election as pivotal for the future of digital assets in the US.

Biden’s recent engagement with the crypto industry signifies a notable shift, reflecting a new willingness to understand digital assets and their communities. This change comes as the campaign recognizes the potential electoral impact of crypto issues in the closely contested presidential race.