United States presidential candidate Vivek Ramaswamy has praised Grayscale’s recent victory over the federal securities regulator, stating that the decision will help maintain Bitcoin and blockchain innovation within the country.
In a post on X (formerly Twitter) on August 30, Ramaswamy criticized the “shadow” U.S. government and blamed the “unlawful rogue behaviors” of government agencies, presumably referring to the Securities and Exchange Commission (SEC). He argued that this situation has forced cryptocurrency innovators to seek protection from U.S. courts, which should not have been necessary in the first place.
Ramaswamy highlighted the importance of the recent court decision, stating that it clears a path for Bitcoin and blockchain innovation to stay in the United States rather than going overseas. He emphasized the need to support and protect the industry from excessive regulatory interference.
If elected, Ramaswamy promised to repeal all federal regulations that fail the Supreme Court’s test in the West Virginia vs. EPA case. This move could potentially limit the SEC’s jurisdiction in the crypto industry, depending on whether cryptocurrencies qualify under the major questions doctrine.
However, the application of the major questions doctrine to the crypto industry is still being tested in U.S. courts. While support for Coinbase’s argument has been expressed through several amicus briefs, a recent court hearing in the Terraform Labs case ruled against applying the doctrine to crypto tokens, citing insufficient economic implications.
Ramaswamy is one of the three remaining presidential candidates who openly support the crypto industry, along with Robert Kennedy Jr. and Ron DeSantis. Tesla CEO Elon Musk recently endorsed Ramaswamy, praising his acceptance of Bitcoin and advocacy for cryptocurrencies. Musk described Ramaswamy as a “very promising candidate.”
In late May, Ramaswamy became the first presidential candidate to accept Bitcoin for campaign donations, further demonstrating his commitment to the cryptocurrency industry.
Grayscale Investments’ recent court victory against the SEC on August 29 was seen as a significant win for the cryptocurrency space, particularly for Bitcoin exchange-traded funds (ETFs). Following the news, Bitcoin’s price experienced a 7.3% increase, reaching $27,940 before settling at $27,200. Analysts from Bloomberg noted that Grayscale’s victory enhances the possibility of spot Bitcoin ETFs receiving approval by the end of 2023.
The implications of the court decision and Ramaswamy’s support for the crypto industry indicate a growing recognition of the importance of fostering innovation and competition within the United States. As the presidential race unfolds, the future of cryptocurrency regulation and its impact on the country’s economy remains a prominent topic of discussion.