Crypto Conundrum: Unraveling Biden’s Blockchain Legacy as Trump Takes the Helm

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As Joe Biden’s presidency concludes, his approach to cryptocurrency leaves behind a complex legacy marked by contrasting actions. On January 20, Donald Trump, known for his pro-crypto stance, assumes the presidency with aspirations of positioning America as a leading hub for digital currencies. Under Biden’s administration, regulatory bodies embarked on a series of stringent measures against crypto entities, addressing perceived non-compliance with legal standards. Despite a more cautious approach, Biden’s era also saw significant strides in institutional cryptocurrency adoption, with regulatory approval for several crypto products and custodians, fostering a fragmented progress over the past four years.

Gary Gensler, tapped by Biden to head the Securities and Exchange Commission (SEC), focused on rigorous enforcement, launching over 100 legal actions against crypto firms for failing to register as securities brokers or exchanges. Industry criticisms highlighted these stringent measures as a barrier to technological advancements in the crypto sector. Tensions peaked in 2024 when a group of crypto executives accused Biden’s administration of utilizing financial regulators to restrict banking services access for crypto companies.


Nevertheless, Biden’s tenure also witnessed pivotal developments in the institutional adoption of digital assets. The SEC greenlit several spot Bitcoin and Ether ETFs, significantly influencing the financial landscape by allowing broader access to digital investments. This development, paired with an increase in digital asset custodians like Coinbase and Fidelity, positioned the United States as a crucial player in institutional crypto custody.

The administration also supported innovation in tokenization, as exemplified by Franklin Templeton’s introduction of a tokenized money fund, marking the first time an investment vehicle relied on blockchain for recordkeeping with SEC approval. The total value locked in US tokenized money funds, including significant contributions from stablecoins like USD Coin (USDC), surged during Biden’s term, with the US Treasury acknowledging the potential of tokenization for economic transformation.

As Trump assumes office, the crypto community anticipates how his policies might pave the way for further advancements in digital currencies, particularly in tokenization and market expansion, potentially transforming the US financial markets.