The Biden Era's Crypto Policy: A Legacy of Hostility and Misguided Regulation

The decline in bitcoin's price has been cited by former Biden economic advisers Ryan Cummings and Jared Bernstein as evidence that the administration's approach to cryptocurrency was correct. However, this argument relies on selective memory and omits key facts about the Biden-era crypto policy. The administration's strategy of regulation-by-enforcement, rather than establishing clear rules, had a devastating impact on legitimate businesses and consumers. The lack of clear rules allowed bad actors to thrive, while compliance-minded companies were driven offshore or out of business. The authors of the op-ed also ignore the 'Operation Choke Point 2.0' episode, in which banks systematically debanked lawful crypto businesses under pressure from federal regulators, cutting them off from the financial system without due process. The Biden administration's approach to crypto has been criticized for stifling innovation, harming consumers, and undermining the US crypto ecosystem. Despite the authors' claims that crypto has 'almost no practical use', it has been shown to have significant benefits, such as enabling fast and low-cost cross-border remittances. The use of blockchain technology is also being explored by major companies, including Fidelity, JPMorgan, and Visa. The op-ed's criticism of crypto has been labeled as 'analytically unserious' and the authors' concerns about taxpayer-funded bailouts have been dismissed as a straw man. The Biden administration's handling of the crypto industry has been compared to its response to the collapse of Silicon Valley Bank, where it authorized extraordinary measures to guarantee all deposits. The op-ed's focus on crypto industry political donations has also been criticized, with some arguing that it implies corruption and ignores the fact that the crypto industry is simply advocating for favorable regulation through the political process. Ultimately, the Biden administration's approach to crypto regulation has been seen as a missed opportunity to establish the US as a leader in digital asset regulation and has instead created a hostile environment for innovation and consumer protection.