Former U.S. President Donald Trump was never one to mince words, so his blunt admission of being "not very interested" in cryptocurrency came as no surprise. The landscape now appears different, with newly elected President Joe Biden seemingly taking a more favorable stance toward crypto.
While we lack direct, substantial evidence of his personal views on cryptocurrencies, we can infer the broad policy direction from his cabinet appointments—and gauge what to expect from the new administration.
Two Key Biden Appointees Set to Shape Crypto Policy
One of Biden's earliest and most significant nominations was for Treasury Secretary: former Federal Reserve Chair Janet Yellen, who was later confirmed by the Senate. For those in the crypto space, her name is familiar. She is widely known for her skeptical view of cryptocurrencies, having labeled them "highly speculative assets."
During her confirmation hearing in January 2021, she raised concerns about crypto's role in facilitating illicit activities. She stated: "I think many are used, at least in a transactions sense, mainly for illicit financing. We need to look at ways in which we can curtail their use and make sure that [money laundering] doesn't occur through these channels."
Other Biden appointees hold more nuanced views. The most notable is Gary Gensler, tapped to lead the U.S. Securities and Exchange Commission (SEC). A former Chair of the Commodity Futures Trading Commission (CFTC) under Obama, Gensler is not only an ex-Goldman Sachs banker turned regulator but also taught a course on digital currencies at MIT's Sloan School of Management.
His deep understanding of crypto-related law and blockchain technology positions him well to assemble a competent team willing to engage with the industry and advance thoughtful policy. In a recent CoinDesk op-ed, Gensler described Bitcoin as a catalyst for change while stressing the need for a stronger regulatory framework to support exchange operations and curb market manipulation, fraud, and hacking.
At the very least, Gensler is likely to approach crypto with more insight than an outright dismissal based on "money laundering risks." Major global banks are no strangers to such risks themselves. For reference: Source 1, Source 2, Source 3, and Source 4.
Legislation and Oversight
There's no current sign of new legislation being drafted specifically for the crypto industry. As we've seen, Democratic lawmakers often prioritize consumer protection and tend to restrict market innovation when potential impacts on the public remain unclear.
Not long ago, Representative Maxine Waters demanded Facebook halt development of its Libra stablecoin until Congress could better understand the implications of a currency issued by the world's largest social network—a company whose business model relies on selling user data. Alexandria Ocasio-Cortez has also criticized corporate-controlled currencies, expressing support for those managed by central authorities. In December 2020, three Democratic representatives introduced the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act, which would require stablecoin issuers to obtain bank charters and regulatory approval.
While these examples focus on stablecoins, they offer a glimpse into the broader stance the Biden administration might take toward the entire crypto sector. Given that freedom is a core tenet of cryptocurrency—and considering the industry's youth and rapid evolution—more comprehensive regulations covering crypto and its use cases are likely on the horizon.
Is this just a repeat of old debates? Yes and no. The tug-of-war between crypto advocates and skeptics continues, even at the highest levels of government. Yet the appointment of someone like Gary Gensler—who possesses deep, substantive knowledge of crypto and blockchain—signals meaningful progress. Such a move would have been unthinkable just five years ago.
But we must remember: the industry is still in its early days. We need to prepare for inevitable changes—even those we oppose—and find ways to adapt without compromising our mission, limiting equal opportunity, or surrendering self-determination.