USA Elections: A Detailed Look at Biden’s Crypto Policies in 2024

In the current US election season, crypto is a key topic, with around 40% of voters, as per a Digital Currency Group survey, wanting candidates to address it. Despite past opposition, Republican candidate Donald Trump now supports the crypto industry. Republicans in Congress aim to nullify a Democrat-backed rule preventing banks from offering crypto custody services. But what about Biden?

To grasp US President Joe Biden’s stance on crypto, it would be a good start to examine major developments under his administration. Was any progress really made? Ready to explore? Dive in!

1. Biden Administration & Crypto Markets: Decoding Policies & Actions

Here is the timeline of this year’s major developments capable of explaining the Biden administration’s attitude towards the cryptocurrency market. 

• May 8, 2024: Biden administration blocks banks from offering crypto custody, citing adherence to SEC guidance for consumer protection and financial stability.

• April 13, 2024: Concerns raised over Russia’s use of stablecoins to evade sanctions, highlighting risks of illicit finance.

• April 3, 2024: US government sells more Bitcoin stash, impacting market sentiment and prices, showcasing active involvement in crypto.

• March 16, 2024: Treasury investigates $165M crypto transactions possibly linked to Hamas, emphasising crackdown on illicit finance.

• March 3, 2024: Senators introduce legislation against CBCSs, citing privacy concerns and advocating for decentralised alternatives in finance. 

• February 6, 2024: Congressional call for regulatory oversight in the digital asset market to promote market integrity and investor protection.

• February 1, 2024: US impose reporting requirements on crypto miners to address environmental concerns, aiming for sustainability in mining.

• January 10, 2024: US SEC approves Bitcoin Spot ETFs, signalling acceptance of crypto assets in traditional financial markets.  

Let’s analyse each development to understand how the Biden administration thinks. 

1.1. Biden Admin’s Veto of a Crypto Resolution on Bank Crypto Custody  

The Biden Administration’s veto of the resolution permitting American banks to provide crypto custody services underscores a cautious regulatory approach. Prioritizing consumer protection and financial stability, the administration aligns with SEC guidance, signaling a preference for meticulous regulatory oversight over hasty expansion.

1.2. US Admin’s Allegation on Russia’s Use of Stablecoins 

Expressing concerns about Russia’s use of stablecoins to evade sanctions, the administration demonstrates vigilance against illicit financial activities facilitated by crypto assets. This highlights a proactive stance in combating financial crimes and rogue state activities within the crypto space. Such actions emphasise the administration’s commitment to safeguarding national security interests.

1.3. US’ Sell-off of Bitcoin Stash 

The decision to sell more of the nation’s Bitcoin stash indicates the government’s active involvement in the crypto market. This move can potentially impact market sentiment and prices, underscoring the administration’s ability to influence crypto markets. The decision reflects a pragmatic approach to managing government-held crypto assets, balancing fiscal considerations with market dynamics.

1.4. US Investigation into Crypto Transactions 

The US Treasury Department’s investigation into crypto transactions linked to terrorist financing underscores the administration’s resolve in combating illicit finance. Through enhanced oversight and regulations, the administration aims to mitigate risks associated with crypto-enabled financial crimes, emphasizing the importance of upholding regulatory standards within the crypto industry.

1.5. Legislation in the US against the Biden Administration’s CBDC Plan

The introduction of legislation prohibiting central bank digital currencies signals skepticism towards government-controlled digital currencies. This underscores concerns over privacy and government surveillance, emphasizing a commitment to individual freedoms and financial autonomy.

1.6. Call for Regulatory Oversight 

Congressional calls for regulatory oversight in the digital asset market underscore the administration’s efforts to address regulatory gaps. This reflects a commitment to promoting market integrity and investor protection within the crypto industry. The administration’s support for comprehensive regulation signals a desire to foster a transparent and orderly market environment.

1.7. US Govt. Imposition of Reporting Requirement for Crypto Miners 

Imposing reporting requirements on cryptocurrency miners demonstrates a commitment to environmental sustainability. By addressing concerns over energy consumption and environmental impact, the administration aims to mitigate negative externalities associated with crypto mining. This reflects a proactive approach to balancing innovation with environmental responsibility within the crypto sector.

1.8. US SEC’s Approval of Bitcoin Spot ETFs

The US SEC’s approval of Bitcoin Spot ETFs signals a shift towards greater acceptance of cryptocurrencies within traditional financial markets. This decision reflects a willingness to embrace crypto assets as legitimate investment vehicles, enhancing market access for retail and institutional investors. The administration’s support for crypto integration underscores a recognition of the industry’s growth potential and economic significance. 

Wrapping Up

With the US elections on the horizon, how will crypto regulations evolve under the Biden Administration? Will we see a more innovation-friendly approach, or will consumer protection remain the top focus?

Only time will tell, but one thing is certain: the crypto landscape is in a state of flux, and the coming months could be pivotal in shaping its future.