Neither Joe Biden nor Donald Trump is a champion of crypto

As November approaches, the presidential campaign is heating up and many people are excited about Donald Trump's comments praising cryptocurrency. But how does the former president compare to the current one? Former President Trump and President Biden are opposites on many issues, but cryptocurrency may be an issue where they share common ground.

President Biden, meanwhile, has made a few supporters among cryptocurrency users and companies. However, he has said very little about the issue privately, other than an executive order calling for an investigation into the cryptocurrency and a vague tweet about “tax loopholes that help wealthy crypto investors.” Instead, the hatred was fueled by the Biden administration.

For example, in February 2023, headlines concerned the revival of Operation Choke Point – an Obama administration initiative – by the Biden administration to lock cryptocurrency-related businesses and users out of the traditional financial system. As Nick Carter reported at the time, government officials were putting pressure on banks for any involvement with cryptocurrencies.

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A month later, former Biden administration adviser Delip Singh revealed that he was pushing for the launch of a central bank digital currency, or CBCC, because it would “crowd the crypto ecosystem.”

The Biden administration proposed a 30 percent tax on cryptocurrency mining energy costs in May 2023 (and again in March 2024). The White House's Council of Economic Advisers argued that the proposed tax would force companies to consider “the harm they do to society.” However, as many people have pointed out, the tax seems more designed to drive miners out of business than to help the environment, because miners are taxed even if they work with renewable energy.

In recent news, the Energy Information Administration has used emergency authorities to force cryptocurrency miners to comply with data requests. The agency recalled mandatory collection, but only after a lawsuit was filed and a judge issued a temporary restraining order.

Finally, over the past few years, the Securities and Exchange Commission (SEC) has issued numerous regulations and enforcement actions. At one point, SEC Chairman Gary Gensler went as far as to suggest that “everything except Bitcoin” may have a target on its back. As my colleagues Jennifer Schulpe and Jack Soloway point out, the SEC's approach is illogical and irrational, warning, “The SEC should not be left in the shadows to destroy American jobs and reach a new level of class.” technology”

With such hostile treatment, it's easy to see why people want change. But is Donald Trump any different?

Trump seems to have sensed the crowd's discontent and threw out a few crumbs to cheer cryptocurrency users. For example, Trump recently told CNBC that he's excited to see how much of his sneaker sales are in the cryptocurrency, saying, “I'm not sure I want to take it at this point.” (It was revealed last year that Trump owns nearly $2.8 million in cryptocurrency.)

However, Trump is far from a libertarian or an authoritarian. “You have to do some regulation,” Trump said when asked about Bitcoin (BTC) in February. He also added that he would “not allow countries to get off the dollar” – suggesting that he would use trade restrictions, regulatory restrictions or perhaps military intervention to force the use of the dollar. In fact, by 2021, cryptocurrencies should be heavily regulated so they don't compete with the dollar, he made similar comments.

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Trump has been more hostile during his presidency.

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and their value is very volatile and depends on thin air,” Trump tweeted in 2019. Perhaps what later inspired Massachusetts Senator Elizabeth Warren, Trump wrote more. “Unregulated crypto assets can facilitate illegal behavior, including drug trafficking and illegal activities.” Finally, he wrote that companies that want to create cryptocurrencies should be regulated like banks.

In short, Trump has effectively called for more restrictions on currency competition, financial surveillance, and greater regulatory burdens.

As for policy positions at the agency level, it was a bit more of a mixed bag (in part because cryptocurrency was still making its way into the mainstream).

Under Treasury Secretary Stephen Mnuchin, the Financial Crimes Enforcement Network introduced the Wallet Act to increase financial surveillance and seize data on cryptocurrency users. And while Gensler doesn't compete with the SEC, 57 cases have been filed against cryptocurrency-related companies under SEC Chairman Jay Clayton.

However, at the same time, senior administration officials urged caution by taking a more vague stance. Mark Calabria, chief economist for current Vice President Mike Pence, said: “We approach this with a heart.” Currency watchdog Brian Brooks has made reforms in his advocacy of cryptocurrency. Similarly, Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, warned that “if we over-regulate and discourage people from entering the market, that will have dire consequences.”

These examples are not comprehensive, but they provide an interesting picture of where Biden and Trump stand on cryptocurrency. Trump's record may be slightly better than Biden's on cryptocurrency issues, but neither president appears to be a “champion of crypto.” Instead, the choice again comes down to who is the lesser of two evils.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.