Kristin Smith, CEO of Blockchain Association, a leading industry group representing the crypto and Web3 sector, expressed disappointment with the Biden administration's skeptical and dismissive characterizations of cryptocurrencies, Web3 and blockchain in its recently issued Economic Report.
“Today’s Economic Report of the President from the Biden administration is disappointing,” Smith said in a statement. “While other countries are increasingly receptive to the burgeoning crypto industry, some in government appear increasingly allergic to its promise, sending companies and innovators offshore. Crypto is here for good, promising a safer and sounder financial system and a consumer-centric internet. We urge the Biden administration to consider how it will be remembered: As a leader of profound innovation or a roadblock to a global tech revolution.”
The Economic Report of the President is an annual report submitted to Congress by the Council of Economic Advisers. It provides an analysis of the U.S. economy, including economic indicators and policy recommendations, and is considered an important resource for policymakers, academics and the public to know the administration's thoughts about the U.S. economy.
In a section called "The Perceived Appeal of Crypto Assets," the President's Economic Report categorized cryptocurrencies as "mostly speculative investment vehicles" that lack "fundamental value." The White House report further expressed skepticism that crypto can "act as an effective alternative to fiat money, improve financial inclusion or make payments more efficient."
Rather than practical instruments for everyday transactions or a reliable store of value, the Biden administration report portrays a cautious and critical view of cryptocurrencies, emphasizing their speculative nature, potential risks to financial stability, environmental impact and potential for illicit use.
A November 2022 survey conducted by The Harris Poll found that 52% of Americans, including a majority of Democrats and Republicans, agree that "cryptocurrencies are the future of finance." The survey also found that interest in cryptocurrencies is higher among younger investors and investors from various backgrounds, with one-third of black, Hispanic and respondents under 45 years old already holding cryptocurrencies. Over 80% of respondents also agreed that clearer regulations should be placed on the cryptocurrency sector with a "consumer-first" approach to regulation, enabling individuals, rather than the government, to determine their approach to investing in cryptocurrencies.
The Blockchain Association represents leading investors, companies and projects in the cryptocurrency sector and advocates for a pro-innovation national policy and regulatory framework for the crypto economy.