The race for the presidency is intensifying as November approaches, and there is growing excitement surrounding Donald Trump’s positive remarks about cryptocurrency. However, when it comes to cryptocurrency, how do the former president and the current president compare? While they may have opposing views on many issues, they may actually share some common ground on this particular issue.
President Biden has not been popular among cryptocurrency users and companies. Although he has made few personal statements about the issue, aside from a tweet criticizing unclear tax loopholes benefiting wealthy crypto investors and an executive order calling for research on cryptocurrency, his administration has fueled the animosity.
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 increasing pressure on banks to avoid any involvement with cryptocurrency.
A former Biden administration advisor, Daleep Singh, revealed a month later that he had advocated for the launch of a central bank digital currency (CBDC) to crowd out the crypto ecosystem. In May 2023 and again in March 2024, the Biden administration proposed a 30 percent tax on cryptocurrency miners’ energy costs. Despite the argument that this tax would encourage firms to consider the harm they impose on society, critics pointed out that it seemed designed to eliminate miners rather than help the environment, as even those using renewable energy would be taxed.
In more recent news, the Energy Information Administration used emergency authorities to compel cryptocurrency miners to comply with information requests. This action was eventually recalled after legal action was taken and a temporary restraining order was issued.
Over the past few years, the Securities and Exchange Commission (SEC) has implemented numerous regulations and enforcement actions. At one point, SEC Chairman Gary Gensler even suggested that anything other than Bitcoin could be targeted. The SEC’s approach has been criticized as illogical and unreasonable, hindering Americans’ access to a new class of technology.
Given the hostile treatment from the Biden administration, it is understandable why people are seeking change. But is Donald Trump truly different?
Trump appears to have recognized the public’s dissatisfaction and made some gestures to appease cryptocurrency users. In a recent interview with CNBC, Trump expressed excitement about the use of cryptocurrency in sneaker sales 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. He has expressed the need for some regulation, and he is determined to prevent countries from abandoning the dollar, even if it means using trade restrictions, regulatory measures, or potentially military intervention. In 2021, he also stated that cryptocurrencies should be heavily regulated to prevent them from competing with the dollar.
During his presidency, Trump was even more hostile towards cryptocurrency. He stated that he was not a fan of Bitcoin and other cryptocurrencies, claiming that they were not real money and their value was based on thin air. He also warned about the facilitation of unlawful behavior through unregulated crypto assets.
In summary, Trump has called for increased restrictions on currency competition, greater financial surveillance, and higher regulatory burdens. At the agency level, the stance was a bit more mixed, with some officials expressing caution and advocating for reforms while others introduced measures to increase financial surveillance.
These examples provide an interesting perspective on where Biden and Trump stand on cryptocurrency. While Trump’s record may be slightly better on this issue, neither president can be considered a true crypto champion. Once again, it seems to come down to choosing the lesser of two evils.
Nicholas Anthony, a policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives, highlights these comparisons. This article aims to provide general information and should not be taken as legal or investment advice. The opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.