Ripple CEO Brad Garlinghouse appeared on “Mornings with Maria” to comment on the cryptocurrency market, claiming that it will double in size by the end of 2024.
Big names in the $2 trillion cryptocurrency industry met with White House officials in Washington DC on Wednesday to express frustration over the Biden administration's increased regulation of the industry and whether strained relations between the two sides can be repaired.
The event took place at the Willard Hotel, within walking distance of the White House, and was hosted by two prominent Democrats: California Congressman Ro Khanna, whose district includes the ultra-wealthy tech district of Silicon Valley, and billionaire tech entrepreneur and cryptocurrency investor and advocate Mark Cuban.
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The invitation-only special meeting, attended by around 30 participants, included prominent Democratic politicians including Rep. Joe Negoz (D-CO) and Sen. Kirsten Gillibrand (D-NY), Ripple CEO Brad Garlinghouse, SkyBridge Capital President Anthony Scaramucci, well-known former hedge fund manager and crypto investor Mike Novogratz, and executives from major crypto companies and industry associations.
Anita Dunn, a senior adviser to President Biden, also attended the conference, but another guest, White House Chief of Staff Jeff Zients, did not attend. Dunn spoke briefly, acknowledging that dialogue with the industry had not been fully productive. Afterwards, attendees heard critics of the administration's handling of digital assets and how the SEC's myriad enforcement actions have hurt companies and stifled market competitiveness.
One attendee said Dunn seemed “genuinely surprised” by the explanation for the SEC's actions.
MEET THE PRESS — Pictured: (L) Former White House Communications Director Anita Dunn appears on “Meet the Press” in Washington, DC, Sunday, May 4, 2014. (Photo by William B. Plowman/NBC/NBC Newswire/NBCUniversal via Getty Images) (Photo: William B. Plowman/NBC/NBC Newswire/NBCUniversal via Getty Images)/Getty Images)
If the meeting was designed to repair relations between cryptocurrency advocates and the Biden administration, it's unclear whether it accomplished that goal.
“You guys are bad at crypto,” one attendee told Dunn, in an exchange described by FOX Business as “respectful but candid.”
“I'm a lifelong Democrat and you're all dead wrong on this one,” said another attendee.
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Biden's Republican opponent, Donald Trump, has had some success courting the industry to garner votes and campaign contributions amid his administration's tightening regulations. The Winklevoss twins of Facebook fame and the founder of cryptocurrency exchange Gemini donated about $1.7 million to Trump's campaign, supported Biden's pledge to “end Biden's wars on crypto” and took a more relaxed regulatory approach than current White House occupant and top financial regulator, Securities and Exchange Commission Chairman Gary Gensler.
Khanna did not immediately respond to a request for comment from Fox Business, but Cuban said the meeting was beneficial for both sides.
“I think it went well,” Cuban said in an email. “The right people were there from the Senate, House and White House. I think we will see a shift in how the Biden White House and the Democratic Party as a whole supports cryptocurrency.”
Dallas Mavericks owner Mark Cuban said he thinks the “wokeness” is good for business. (Christian Petersen/Getty Images/Getty Images)
Cuban has been a vocal critic of the SEC since he was accused of insider trading in 2004 when he avoided losing about $750,000 by selling shares in a Canadian Internet company. He was exonerated in 2013 and has publicly campaigned against the SEC ever since. “You can quote me when I say that Biden should fire Gary Gensler,” Cuban told the room at the end of the meeting, according to two attendees.
Several others interviewed by Fox Business echoed Cuban's assessment that attendees effectively conveyed their message of discontent to Dunn and the Biden administration.
Some in attendance criticized the White House's decision to re-appoint SEC Commissioner Caroline Crenshaw, a Democrat and anti-cryptocurrency activist who voted against the SEC's approval of the launch of 11 bitcoin physical ETFs in January.
Meanwhile, Gillibrand explained the complexities of regulating digital assets, including the dispute between the SEC and its sister agency, the Commodity Futures Trading Commission, over who should have the power to regulate the $2 trillion cryptocurrency market. She also used the opportunity to tout her new stablecoin bill, along with Republican Sen. Cynthia Lummis of Wyoming, as a key example of why the crypto industry needs proper regulation.
Dunn said that while he is not a policy official, he will be sure to bring the industry's concerns back to the White House and continue the discussions.
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“Her tone, her demeanor, her body language made it clear to me that she was taking this seriously and was serious about what people had to say,” Sheila Warren, president of the Crypto Council for Innovation, told Fox Business. “She was definitely eager to learn more.”
“I was a lot more optimistic when I left the company than when I joined,” said Coinbase Chief Legal Officer Paul Grewal. “I think Anita Dunn's arrival is a sign of progress, even as we're dealing with very tense times with the NATO summit and the Biden campaign.”
U.S. President Joe Biden (right) and Republican presidential candidate and former U.S. President Donald Trump participate in the CNN presidential debate at CNN Studios in Atlanta, Georgia, on June 27, 2024. President Biden and former President Trump (Photo by Justin Sullivan/Getty Images/Getty Images)
Attendees also told Fox Business that it was clear Democrats in attendance were aware of their desperation to rally crypto support for Biden's campaign, which is facing an existential crisis following its disastrous performance in last month's debate with President Trump.
“Republicans are playing chess and Democrats are playing checkers,” said one attendee, who asked not to be named. “There's no voting advantage to being anti-crypto.”
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While most attendees agreed that the meeting with Dunn was an important first step toward a more positive dialogue between the crypto industry and the Biden administration, they said the ball is in the White House's hands.
“Words are easy, actions are hard, but they are necessary,” Ripple CEO Brad Garlinghouse said in a post on X. “Choose wisely. Voters are watching.”
