As the November elections draw closer, the presidential campaign trail is heating up, and one topic that has garnered a lot of attention is cryptocurrency. While former President Donald Trump has expressed positive sentiments towards cryptocurrency, it is interesting to compare his stance with that of current President Joe Biden. Despite their differences on many issues, cryptocurrency may be an area where they share some common ground.
President Biden has not been particularly popular among cryptocurrency users and companies. Although he has mentioned cryptocurrency in an executive order and a tweet criticizing tax loopholes for wealthy crypto investors, he has not personally addressed the issue in depth. The antagonism towards the crypto community has mostly come from his administration.
In February 2023, concerns arose that Operation Choke Point, an initiative from the Obama administration, had been revived by the Biden administration to exclude cryptocurrency-related businesses and users from the traditional financial system. Government officials were pressuring banks to sever ties with cryptocurrency, as documented by Nic Carter at the time.
Former Biden administration advisor Daleep Singh later revealed that he had advocated for the launch of a central bank digital currency (CBDC) to overshadow the crypto ecosystem. This revelation came one month after Operation Choke Point concerns.
In May 2023, the Biden administration proposed a 30 percent tax on cryptocurrency miners’ energy costs, with a renewed proposal in March 2024. The White House Council of Economic Advisors argued that this tax would hold firms accountable for the societal harm caused by their operations. However, critics pointed out that the tax seemed more geared towards driving miners out of business rather than promoting environmental sustainability, as even miners using renewable energy would be taxed.
More recently, the Energy Information Administration used emergency authorities to demand information from cryptocurrency miners. This action was later recalled after a lawsuit was filed and a temporary restraining order was issued by a judge.
Furthermore, the Securities and Exchange Commission (SEC) has issued numerous regulations and enforcement actions in recent years. SEC Chairman Gary Gensler even hinted that all cryptocurrencies except Bitcoin could be targeted. The SEC’s approach has been criticized for being illogical and unreasonable, hindering Americans’ access to new technological advancements.
Given the hostile treatment from the Biden administration, it is understandable why people are seeking change. However, is Donald Trump truly a different option?
Trump seems to have recognized the public’s dissatisfaction and made some remarks to appease cryptocurrency users. In a recent CNBC interview, he expressed excitement about cryptocurrency and stated that he would not want to take it away at this point. It was revealed last year that Trump holds approximately $2.8 million in cryptocurrency.
However, Trump is not a libertarian or a maximalist when it comes to cryptocurrency. In February, he mentioned the need for some regulation when asked about Bitcoin. He also emphasized his commitment to the dollar, suggesting that he would use trade restrictions, regulatory measures, or even military intervention to enforce its use. In 2021, he called for heavy regulation of cryptocurrencies to prevent them from competing with the dollar.
During his presidency, Trump was even more hostile towards cryptocurrency. He tweeted in 2019 that he was not a fan of Bitcoin and other cryptocurrencies, considering them volatile and based on thin air. He also highlighted their potential to facilitate illegal activities and advocated for regulating companies creating cryptocurrencies as banks.
In terms of agency-level policies, the situation was more mixed during Trump’s presidency. Treasury Secretary Stephen Mnuchin introduced the infamous wallet rule to increase financial surveillance of cryptocurrency users. The SEC, under Chair Jay Clayton, brought 57 cases against cryptocurrency-related companies. However, other officials within the administration took more nuanced positions and cautioned against over-regulation.
The examples provided paint an interesting picture of where Biden and Trump stand on cryptocurrency. While Trump’s record may be slightly better than Biden’s, neither president can be considered a “crypto champion.” Once again, it seems to be a choice between the lesser of two evils.
Nicholas Anthony is a policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives. He has written extensively on the subject of cryptocurrency and its regulation. The views expressed in this article are his own and do not necessarily reflect the opinions of Cointelegraph or the Cato Institute.