The True Impact of Biden-Era Crypto Policy: Regulation Through Hostility

The decline in bitcoin's price is being used by former Biden economic advisers to justify their administration's approach to cryptocurrency, but this argument is based on selective memory and omits key facts. The Biden administration's strategy of regulation-by-enforcement, rather than establishing clear rules, had a devastating impact on legitimate crypto businesses and consumers. The administration's actions, such as 'Operation Choke Point 2.0,' which involved banks systematically debanking lawful crypto businesses, demonstrate a hostility towards the industry. This approach not only harmed consumers but also stifled American innovation and allowed bad actors to thrive. The authors of the op-ed dismiss crypto as having 'almost no practical use,' but this ignores the significant benefits of blockchain technology, including fast and low-cost cross-border remittances, which can greatly improve the lives of millions of people. The claim that no major tech firms are using blockchain technology is also incorrect, as many prominent companies are actively building on blockchain infrastructure. The op-ed's argument is based on short-term price movements and ignores the long-term potential of the industry. The Biden administration had the opportunity to establish clear and fair rules for the crypto industry, but instead chose to weaponize the banking system against it, resulting in a lose-lose-lose situation for innovation, consumer protection, and the US crypto ecosystem.