Former President Donald Trump has initiated the acceptance of cryptocurrency donations for his re-election campaign, becoming the first US presidential candidate to embrace digital assets for funding.

As per a statement released on May 21:

"This addition to President Trump's already pioneering digital fundraising operation marks the inaugural instance of a major party Presidential nominee adopting cryptocurrency for donations."

Information available on the website indicated that crypto users could contribute using various digital assets, including Bitcoin, Ethereum, XRP, Cardano, Dogecoin, Shiba Inu, among others.

Cryptocurrency has become a significant topic leading up to the November elections, with former President Trump and President Joe Biden expected to be the primary contenders for their respective parties.

The candidates have taken divergent positions on the emerging industry, with Trump openly endorsing crypto and pledging to facilitate its growth through appropriate regulation. Trump stated:

"Democrats, like Biden and his official surrogate Elizabeth Warren, continue to believe only government has the answers to how our nation leads the world."

However, recent developments suggest that the Biden administration may alter its longstanding firm stance on the sector.

Ethereum ETF

Reports emerged on May 20 indicating that the US SEC might greenlight spot Ethereum exchange-traded funds (ETFs), a significant departure from earlier expectations.

Bloomberg Intelligence Analyst Eric Balchunas observed that the SEC's change of heart might be politically motivated, a sentiment echoed by many in the crypto community.

Variant Fund's chief legal officer, Jake Chervinsky, remarked:

"If the spot ETH ETF is approved, it will be a genuine surprise to everyone I know in DC who's closely involved in this process. That doesn't mean it won't happen. It means approval could signal a significant shift in US crypto policy."

Congressional Developments

Last week, US lawmakers from both parties joined forces to overturn the SEC's Staff Accounting Bulletin 121 (SAB 121) resolution despite President Biden's expressed intention to veto the legislation.

Several crypto stakeholders argued that the bulletin was contentious, as SAB 121 mandated financial institutions to safeguard customer assets and retain them on their balance sheets. Notably, the American Bankers Association (ABA) highlighted that the regulation hindered banks from serving as custodians for spot Bitcoin ETFs.

This rare bipartisan occurrence precedes the imminent Senate vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), considered the most significant piece of crypto-specific legislation likely to be enacted.

The FIT21 bill will establish a comprehensive regulatory framework for the digital assets industry in the US. It enjoys broad industry support from major players, including Coinbase, Kraken, and Andreessen Horowitz.

Furthermore, the bill will set a baseline for classifying digital assets as securities or commodities. It expands the CFTC's authority to register and regulate digital commodities and mandates the FTC and SEC to jointly issue regulations for assets not otherwise classified.