As the presidential campaign intensifies and the November election draws near, many individuals have become intrigued by Donald Trump’s positive remarks about cryptocurrency. However, how does the former president compare to the current one? Although Former President Trump and President Biden differ greatly on numerous issues, cryptocurrency may be an area where they find common ground.
President Biden has not garnered much support from cryptocurrency users and companies. Despite this, he has personally said very little about the issue, aside from an executive order calling for research on cryptocurrency and a tweet highlighting unclear “tax loopholes that benefit wealthy crypto investors.” Instead, the animosity towards Biden has been driven by his administration.
In February 2023, concerns arose that the Biden administration had revived Operation Choke Point, an initiative from the Obama administration, to exclude cryptocurrency-related businesses and users from the traditional financial system. Government officials were increasingly pressuring banks to disassociate themselves from cryptocurrency, as documented by Nic Carter at the time.
A month later, former Biden administration advisor Daleep Singh revealed that he had advocated for the launch of a central bank digital currency (CBDC) to diminish the influence of the crypto ecosystem. This revelation further fueled the existing concerns.
In May 2023, and again in March 2024, the Biden administration proposed a 30 percent tax on cryptocurrency miners’ energy costs. The White House Council of Economic Advisors argued that this tax would make firms consider the “harm they impose on society.” However, many people pointed out that the tax seemed designed to eliminate miners rather than benefit the environment, as it applied even to those using renewable energy sources.
Recently, the Energy Information Administration utilized emergency authorities to compel cryptocurrency miners to comply with information requests. The agency was forced to retract this mandatory collection after being sued and receiving a temporary restraining order from a judge.
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 “everything other than Bitcoin” could be targeted. The SEC’s approach, as described by Jennifer Schulp and Jack Solowey, has been illogical and unreasonable, impeding Americans’ access to a new technological class.
Given the hostile treatment from the Biden administration, it is understandable why people are seeking change. However, is Donald Trump truly different?
Trump appears to have acknowledged the public’s dissatisfaction and made some gestures to appease cryptocurrency users. He expressed excitement about his sneaker sales in cryptocurrency and stated, “I’m not sure that I’d want to take it away at this point.” It was revealed in the past year that Trump holds approximately $2.8 million in cryptocurrency.
However, Trump is not a libertarian or a maximalist. When asked about Bitcoin in February, he acknowledged the need for some regulation and stated that he would not allow countries to abandon the dollar. This suggests that he would use trade restrictions, regulatory limitations, or even military intervention to enforce the use of the dollar. In 2021, he expressed a similar sentiment, advocating for heavy regulation of cryptocurrencies to prevent them from competing with the dollar.
During his presidency, Trump was even more antagonistic towards cryptocurrency. He tweeted in 2019 that he was not a fan of Bitcoin and other cryptocurrencies, deeming them unreliable and conducive to illegal activities. He also believed that companies seeking to create cryptocurrencies should be regulated like banks.
In short, Trump called for increased restrictions on currency competition, enhanced financial surveillance, and higher regulatory burdens.
At the agency level, the policy stances were somewhat mixed, primarily due to cryptocurrency’s emergence into the mainstream. The Financial Crimes Enforcement Network, under Treasury Secretary Stephen Mnuchin, introduced the wallet rule to enhance financial surveillance and gather data on cryptocurrency users. Under SEC Chair Jay Clayton, there were 57 cases against cryptocurrency-related companies, although this pales in comparison to Gensler’s SEC.
However, other officials within the administration took more nuanced stances and urged caution. Mark Calabria, then-chief economist for Vice President Mike Pence, approached the issue with an open mind. Acting comptroller of the currency Brian Brooks advocated for cryptocurrency and pushed for reforms. Similarly, Consumer Financial Protection Bureau Acting Director Mick Mulvaney warned about the negative consequences of over-regulation.
These examples provide an interesting overview of where Biden and Trump stand on cryptocurrency. Although Trump’s record may be slightly better than Biden’s on cryptocurrency issues, neither president can be considered a “crypto champion.” Once again, it seems that the choice boils down to selecting the lesser of two evils.
Nicholas Anthony is a policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives. He has authored articles on the Infrastructure Investment and Jobs Act’s impact on crypto and the right to financial privacy in the digital age.
This article provides general information and should not be construed as legal or investment advice. The opinions expressed are solely those of the author and do not necessarily reflect the views of Cointelegraph.