Trump's Crypto Czar Calls Out Biden for Driving Crypto Industry Offshore, Touts President's Executive Order
Biden's Policies Criticized for Stifling Crypto Innovation
The former Director of the United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) under the Trump administration, Kenneth Blanco, has criticized the Biden administration's policies towards cryptocurrencies, arguing that they are driving the industry offshore and stifling innovation.
Blanco, who is now a partner at the law firm Davis Polk & Wardwell, made his comments in a recent interview with Bloomberg. He argued that the Biden administration's focus on regulating cryptocurrencies has created uncertainty for businesses and investors, making it difficult for the industry to grow in the United States.
Lack of Clear Guidance from Regulators
“The lack of clear guidance from regulators has created a chilling effect on the industry,” Blanco said. “Businesses are hesitant to invest in the United States because they don't know what the rules are going to be.”
He pointed to the example of stablecoins, which are cryptocurrencies that are pegged to the value of a fiat currency such as the US dollar. Stablecoins have become increasingly popular in recent years as a way to store and transfer value without the volatility of other cryptocurrencies. However, the Biden administration has yet to provide clear guidance on how stablecoins will be regulated.
Exodus of Crypto Businesses
Blanco argued that the uncertainty created by the Biden administration's policies is driving crypto businesses offshore. He cited the example of Coinbase, one of the largest cryptocurrency exchanges in the world, which recently announced that it is moving its headquarters from San Francisco to Singapore.
“Coinbase is just one of many crypto businesses that are moving offshore because of the regulatory uncertainty in the United States,” Blanco said. “This is a brain drain that is hurting the US economy.”
Trump's Executive Order on Crypto
Blanco contrasted the Biden administration's approach to crypto with that of the Trump administration, which he said was more supportive of the industry.
In March 2022, President Trump signed an executive order on cryptocurrencies that directed federal agencies to study the risks and benefits of digital assets and to develop a comprehensive regulatory framework.
Executive Order Welcomed by Industry
The executive order was welcomed by the crypto industry, which saw it as a sign that the government was taking a more active role in supporting the development of the technology.
Blanco said that the executive order has helped to create a more positive environment for crypto businesses in the United States.
Biden's Policies Seen as More Restrictive
In contrast, he argued that the Biden administration's policies have been more restrictive and have created uncertainty for the industry.
He cited the example of the Infrastructure Investment and Jobs Act, which was signed into law in November 2021. The law includes a provision that requires cryptocurrency brokers to report certain transactions to the Internal Revenue Service (IRS).
Industry Fears Overreaching Regulation
Crypto industry groups have argued that the provision is overly broad and could stifle innovation. They also fear that it could lead to overreaching regulation of the industry.
Conclusion
The debate over the Biden administration's crypto policies is likely to continue in the coming months and years. The industry is hopeful that the government will adopt a more supportive approach that will allow it to grow and thrive in the United States.
However, the Biden administration has indicated that it is concerned about the risks associated with cryptocurrencies, and it is likely to continue to take steps to regulate the industry.
The outcome of this debate will have a significant impact on the future of the crypto industry in the United States.
Additional Sources
- Bloomberg: Trump's Crypto Czar Calls Out Biden for Driving Crypto Industry Offshore
- White House: Executive Order on Ensuring Responsible Development of Digital Assets
- Coinbase: Coinbase to Move HQ to Singapore
- IRS: Here's What Infrastructure Investment and Jobs Act Provisions Mean for Virtual Currency Reporting
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