Portrait of Joe Biden
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Joe Biden on Crypto

Regulator of Digital Assets (strong)

TL;DR

Joe Biden favors establishing a comprehensive regulatory framework for digital assets while simultaneously exploring a US Central Bank Digital Currency.

Key Points

  • He signed the Executive Order on Ensuring Responsible Development of Digital Assets on March 9, 2022, setting a federal approach.

  • The administration has repeatedly proposed a significant tax on cryptocurrency miners' energy costs, as noted in May 2023 and March 2024.

  • The President's administration has explored the potential deployment of a U.S. Central Bank Digital Currency (CBDC) through governmental research mandates.

Summary

President Joe Biden has demonstrated a clear administrative focus on establishing a coherent regulatory framework for digital assets, evidenced by his Executive Order on Ensuring Responsible Development of Digital Assets, signed in March 2022. This directive tasked numerous government agencies with examining the risks and benefits across consumer protection, financial stability, national security, and climate impact, signaling an intent to manage the crypto ecosystem rather than outright ban it. Key aspects of this administration's approach include a strong emphasis on mitigating illicit finance risks and promoting US competitiveness in digital asset technology.

Complementing the regulatory push, the administration has placed high urgency on researching the development and design of a United States Central Bank Digital Currency (CBDC), which some analysts suggest is intended to crowd out the existing crypto ecosystem. While the administration has recognized the potential for digital assets to make payments cheaper and faster and to aid underserved communities, it has also been associated with policies perceived as hostile, such as proposed energy taxes on miners and enforcement actions by agencies like the SEC. This posture has led to the perception among some users that the administration favors government-controlled digital currency over decentralized cryptocurrencies like Bitcoin.

Frequently Asked Questions

Joe Biden's position, as directed by his administration, is to establish a comprehensive regulatory framework for digital assets. This involves coordinating multiple government agencies to assess risks and develop policy recommendations to promote responsible innovation while mitigating financial stability and security concerns.

The President has placed high urgency on the government continuing its research into a potential United States Central Bank Digital Currency (CBDC). His Executive Order called for assessments on the design and deployment options for a digital dollar, though it did not explicitly endorse its launch.

Joe Biden has previously compared crypto traders to wealthy tax evaders and his administration has called out unclear tax loopholes benefiting crypto investors. Furthermore, the White House Council of Economic Advisors argued for a tax on miners to account for societal harms.