The Future of Crypto Regulation Under the Biden Administration: What to Expect Next
The race for the Democratic nominee to replace President Joe Biden in November’s election against Trump is heating up, and the crypto industry is paying close attention. Biden’s abrupt departure from the presidential race initially caused panic in the crypto markets, with Bitcoin falling by close to $1,500 in a short period of time.
Industry leaders have been critical of the Biden administration’s approach to digital assets, claiming it has stifled innovation and harmed consumers. Despite initial optimism when Biden signed an executive order on cryptocurrencies in March 2022, many felt that the subsequent regulatory framework lacked detail and clarity.
Coinbase’s chief legal officer, Paul Grewal, warned that the U.S. is falling behind other countries in regulating crypto and urged Congress to deliver clear rules for the industry to follow. Biden’s recent veto of a bill that would have scrapped a controversial accounting policy enforced by the SEC further fueled criticism from industry experts.
The crypto industry also faced a scandal with the collapse of FTX, whose CEO had donated millions to Biden’s campaign. Questions have arisen about when these funds will be returned to compensate victims.
As attention turns to who will be the Democratic nominee, the industry is looking for a candidate who recognizes the importance of crypto technology, addresses regulatory failures, and strikes a balance between innovation and consumer protection. While Vice President Kamala Harris is an early favorite, there are no guarantees.
Overall, the industry is bracing for a shift in crypto policy with the upcoming election, as the Democratic nominee is unlikely to be as pro-crypto as the Republican ticket. Stay tuned as the race unfolds and the future of crypto regulation hangs in the balance.
