The battle for the future of digital assets and blockchain technology has become a central theme, with former President Donald Trump and President Joe Biden representing contrasting approaches. As two distinctly different leaders, Trump and Biden’s stances on cryptocurrencies and their potential to revolutionize the financial landscape are subjects of keen interest and speculation.
Trump and Biden take different stands on crypto
With Bitcoin exchange-traded fund (ETF) licenses coming in an election year, a fundamental question is whether the Trump or Biden administrations are more favorable to Bitcoin adoption. While the Biden period had its fair share of changes, Donald Trump’s presidency had proven to be marginally more beneficial to Bitcoin’s growth – at least so far.
A laissez-faire approach to crypto regulation distinguished Trump’s reign. This hands-off approach proved to be a huge driver for Bitcoin and, more broadly, the markets. The absence of rigorous rules during Trump’s presidency allowed for more expansion in the crypto field, creating a climate in which Bitcoin and blockchain initiatives could thrive largely unhindered.
Trump’s economic initiatives, such as tax cuts and deregulation, also helped create a favorable investment atmosphere, indirectly boosting Bitcoin. During his administration, the buoyant stock market and high interest in alternative assets led to greater investment in Bitcoin.
In contrast, President Joe Biden’s administration indicates a shift towards a more controlled crypto market. While regulation is necessary for long-term stability and legitimacy, others are concerned that excessive control would stifle the crypto world’s innovative spirit.
While positive in certain ways, Biden’s emphasis on regulatory clarity may hinder Bitcoin’s growth during Trump’s tenure.
Under Biden, Bitcoin faces additional obstacles in terms of general acceptability and incorporation into the established banking system. While there has been movement, the key event that many are currently watching is the approval of spot Bitcoin ETFs.
Trump vows to fail CBDC development
At a campaign speech in New Hampshire, former President Donald Trump stated that he would “never allow the creation of a central bank digital currency” (CBDC), while he was running for the Republican presidential nomination in November.
According to a RealClearPolitics polling average, Trump leads incumbent President Biden by 1.6 percentage points. He is seeking a nonconsecutive second term.
“Such a currency would give a federal government – our federal government – absolute control over your money,” Trump remarked in reference to CBDCs. “They could take your money, and you wouldn’t even know it was gone.” The former president pledged to safeguard Americans from “tyranny” by preventing the arrival of a CBDC.
“This would be a dangerous threat to freedom, and I will stop it from coming to America,” Trump said in a statement.
Trump’s anti-CBDC policy views resembled those of other Republican leaders who had spoken out against CBDCs during the campaign. Last year, Florida Governor Ron DeSantis pledged to “nix” central bank digital currencies if elected.
His fellow Republican, Vivek Ramaswamy, recently stepped out of the race after making a similar campaign promise and releasing his own crypto policy framework. Ramaswamy has since endorsed Trump for president.
Republican politicians have long chastised Biden for exploring CBDCs despite the Biden administration having made no commitment to building or executing a CBDC. Instead, the Biden administration identifies CBDCs as having the “highest urgency,” citing the success of China’s experimental digital yuan CBDC initiative, which has over 250 million customers and even integrates with banks outside of mainland China.
Republican politicians have long chastised Biden for exploring CBDCs despite the Biden administration having made no commitment to building or executing a CBDC. Instead, the Biden administration identifies CBDCs as having the “highest urgency,” citing the success of China’s experimental digital yuan CBDC initiative, which has over 250 million customers and even integrates with banks outside of mainland China.
At last year’s Bitcoin 2023 conference in Miami, Florida, former congresswoman Tulsi Gabbard vehemently condemned CBDCs as a financial control tool. “Once we allow someone else to control our wallet, they control our freedom,” she remarked.
Texas Senator Ted Cruz introduced legislation in March 2023 to prohibit CBDCs from being used for financial monitoring. “The federal government has no authority to establish a central bank currency unilaterally,” said Sen. Ted Cruz.
