Biden Administration
Web3 / regulatory frameworks
The US presidential administration of Joe Biden from January 20, 2021 to January 20, 2025, which oversaw a period of aggressive crypto regulatory enforcement and policy uncertainty that the industry broadly characterized as hostile. The administration's approach was shaped primarily by SEC Chair Gary Gensler, who pursued a strategy of 'regulation by enforcement,' filing lawsuits against Coinbase, Kraken, Binance, Ripple, and dozens of other crypto companies rather than issuing clear rulemaking. President Biden twice vetoed Congressional attempts to repeal SAB 121, the SEC guidance that prevented banks from offering crypto custody. The administration was also associated with Operation Choke Point 2.0, the alleged coordinated effort to restrict banking access for crypto businesses. On the positive side, the administration did not move to ban crypto and allowed spot Bitcoin ETF approval to proceed under the SEC in January 2024, though regulators maintained public skepticism throughout. Example: In June 2023, the SEC filed simultaneous lawsuits against Coinbase and Binance, alleging both operated as unregistered securities exchanges and brokers. The Coinbase case was particularly significant because the company had gone public in 2021 with SEC approval and had repeatedly sought regulatory clarity before the lawsuit, making the action appear to many in the industry as a sudden reversal rather than a consistent application of existing rules. Why it matters for Web3: The Biden administration period defined the contours of regulatory risk for crypto businesses and pushed significant industry activity offshore to more permissive jurisdictions. The sharp policy reversal under the Trump administration in 2025 highlighted how much US crypto policy depends on executive branch priorities, and how quickly the regulatory environment can shift. The enforcement cases initiated under Biden continue to work through courts and shape legal precedent regardless of the change in administration.
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