If Biden is elected in the next US presidential election, his policy on cryptocurrency may reflect the following characteristics and trends:
1. Strengthen supervision and clarify regulations
Push for legislation: The Biden administration is likely to continue to push Congress to develop clear cryptocurrency regulations to establish a comprehensive and balanced regulatory framework that will cover consumer protection, financial stability, illegal financing, and more.
Strengthen coordination among regulators: Biden may instruct financial regulators such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to strengthen coordination and jointly address the challenges and risks posed by cryptocurrencies.
2. Maintain a cautious and prudent attitude
Balancing innovation and risk: The Biden administration may encourage innovation in cryptocurrency technology while focusing on preventing possible systemic financial and national security risks.
Gradual progress: In the formulation and implementation of cryptocurrency policies, the Biden administration may adopt a more stable and cautious attitude to avoid radical policies from causing too much impact on the market.
3. Research and Evaluation
In-depth research: The Biden administration may continue to conduct in-depth research on the technical characteristics, market trends, and risk status of cryptocurrencies to provide a scientific basis for policy making.
Assessing impact: The government may assess the impact of cryptocurrencies on financial stability, national security, consumer protection, etc. to ensure the rationality and effectiveness of policy making.
4. Promote the development of digital central bank currency (CBDC)
Support digital dollar research: The Biden administration may continue to support the Federal Reserve’s research and development of the digital dollar and explore the feasibility and application scenarios of digital central bank currency in the United States.
Promoting financial inclusion: By promoting the development of digital central bank currencies, the Biden administration may work to increase the inclusion and accessibility of financial services and provide convenient payment and settlement services to more people.
5. Meeting international challenges
Strengthen international cooperation: The Biden administration is likely to strengthen exchanges and cooperation with other countries on cryptocurrency regulation and cooperation to jointly address the challenges and risks brought about by cross-border financial activities.
Pay attention to international developments: The government will closely monitor the dynamics and development trends of the international cryptocurrency market, and promptly adjust and improve domestic policies to cope with changes in the international market.
Examples of specific measures
The Biden administration may push Congress to pass the Financial Innovation and Technology Act of the 21st Century (FIT21), which would clarify the standards for crypto tokens to become securities or commodities and transfer regulatory authority from the SEC to the CFTC.
The government may strengthen supervision of market participants such as cryptocurrency exchanges and wallet providers to ensure that they comply with laws and regulations such as anti-money laundering and anti-terrorist financing.
The Biden administration may also increase regulation and assessment of cryptocurrency mining activities, focusing on their impacts on energy and the environment.
In summary, if Biden is elected as the next US president, he may adopt policies and measures such as strengthening supervision, clarifying regulations, maintaining a cautious attitude, promoting the development of digital central bank currencies, and responding to international challenges. These measures will help promote the healthy development of the cryptocurrency industry and stabilize market operations.
