A comparison of the approaches to cryptocurrency industry regulation under the administrations of Biden and Trump reveals significant differences in strategy and policy.
Crypto Regulation Under Biden
The Biden administration, taking an opposing stance towards cryptocurrency, implemented measures aimed at restricting the industry. Operation Chokepoint 2.0 was launched in 2023, cutting off banks from serving crypto firms. Federal regulators repeatedly expressed concerns about the mingling of banking and cryptocurrency services, leading to the bankruptcy of banks like Silvergate and Signature. Concurrently, the Treasury sanctioned platforms such as Tornado Cash.
Crypto Regulation Under Trump
With President Trump in the White House, a new direction for the development of the crypto industry was announced. Trump declared intentions to make the USA the cryptocurrency capital of the world. The administration held a White House Crypto Summit and created working groups to address crypto regulation issues. Under his leadership, processes are underway to simplify US banks' engagement with cryptocurrencies, along with the development of pro-market stablecoin legislation.
Potential Conflicts of Interest
There are certain ethical questions regarding conflicts of interest. David Sacks, appointed as the 'crypto czar,' divested his cryptocurrency assets to avoid conflicts of interest, whereas President Trump continues to show personal interest in cryptocurrencies, including mentioning the $TRUMP coin on the Truth Social platform.
The differences in approaches to cryptocurrency regulation between the Biden and Trump administrations could significantly impact the future of the crypto industry in the US. Trump's administration has a more positive stance, though there are ethical concerns remaining.
