Crypto Regulation Showdown: Biden vs. Trump

Since President Trump took office, a lot has changed in the crypto landscape. So far, it seems for the better. The Biden administration had an opposite stance on crypto. It seemed hell-bent on slowing down the crypto industry.

Biden’s crypto regulation differed vastly from the new administration’s view on crypto. So, what changed in crypto regulation under Trump vs Biden?

Crypto Regulation Under Biden

Under the Biden administration, we saw an opposing crypto stance. However, his administration never really objected to the crypto space. Nonetheless, actions count louder than words. There was also never an explanation for why it vehemently targeted the crypto industry. But let’s look at some facts.

Operation Chokepoint 2.0 came about in 2023. Crypto journalist Nic Carter coined this name in one of his articles. This was a campaign to cut traditional banks off from serving crypto firms. Trump referenced this name during his speech on Bitcoin 2024. Now he’s actively looking to dismantle Chokepoint 2.0.

  • There were also ‘pause letters’ by the FDIC (Federal Deposit Insurance Corporation). Between March 2022 and May 2023, it sent these out to regulated financial firms. These letters asked them to;

“pause, or not expand, planned or ongoing crypto-related activities and provide additional information.”

For example, holding or buying Bitcoin in your account.

  • There’s also the case of two banks that went bankrupt. Silvergate and Signature Bank. Both had to shut down, although they had means to survive. Silvergate Bank was a major lender to the cryptocurrency industry. Signature held many crypto deposits. There’s speculation of political hits on these banks.
  • Federal bank regulators also issued a joint statement in 2023. This mentions the risks of mingling banking and crypto services. As a result, Paxos Trust shut down its $BUSD stablecoin.
  • Not to mention how the Treasury sanctioned Tornado Cash. These sanctions were lifted only a few days ago.
  • And there’s Gary Gensler and the SEC. They filed many lawsuits that a lot of people interpreted as overreaching. The SEC sued many crypto firms but didn’t make any attempt to put clear crypto regulations in place. Notorious is the 4-year-long case against Ripple that just came to an end. Watch our dedicated video.

Crypto Regulation Under Trump

With President Trump at the helm, we see a new direction for the crypto sector. He wants to make the USA the crypto capital of the world. Remember that it was only 4 years ago that he called Bitcoin ‘a scam against the dollar’. So, he made a serious 180-degree turnaround.

So far, his administration has shown more than goodwill. There were, for instance:

However, setting up a crypto-friendly regulated framework takes time. The first steps have already been taken, though. 

  • The SEC will have a new chair, with Paul Atkins. Various pro crypto regulations are in the making.
  • The Comptroller has already made it easier for US banks to engage in crypto activities.

  • Stablecoin legislation is underway. Crypto czar David Sacks got things moving within a month. The Senate already advanced a stablecoin bill, with the House not far behind. Of course, it helps that both are in Republican hands for the time being.
  • Sacks also managed to overturn the DeFi platforms to collect and report data. This happened with bipartisan support.

  • Trump Media has announced a partnership with Crypto.com to launch a series of ETFs and ETPs. That’s the parent company of Truth Social.

A Conflict of Interest?

Right, there is a potential conflict of interest. However, both the Senate and the House are in Republican hands. In other words, an impeachment procedure is currently not likely to happen. 

There are various ethical concerns as well. David Sacks did the right thing, he sold all of his crypto investments. He did this to avoid any potential conflict of interest. Trump, on the other hand, seems to be getting deeper into crypto on a personal basis. There were the two memecoins, $TRUMP and $MELANIA and there’s World Liberty Financial. 

The other day, Trump mentioned his $TRUMP coin on Truth Social. He’s walking a thin line here. This can be seen as unethical.

Conclusion

There’s a big difference between the Biden and Trump administrations regarding crypto regulation. It’s almost like day and night. The Biden administration gave the crypto sector a hard time. With Trump, we see a positive attitude towards crypto regulation. However, there are potential ethical concerns with Trump at the helm.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

Copyright Altcoin Buzz Pte Ltd.

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