Since taking office in 2022, the Biden administration has progressively built a regulatory and policy framework for digital assets, centered on balancing innovation with risk. This policy environment is closely linked to the performance of Bitcoin, the cryptocurrency with the largest global market capitalization. This article aims to review the Biden administration's key cryptocurrency policies and analyze their actual impact on the market.
The Biden Administration's Cryptocurrency Policy Framework
On March 9, 2022, U.S. President Joe Biden signed an executive order on digital assets, marking the first systematic top-level design intervention by the U.S. federal government in the cryptocurrency space. The order required multiple agencies, including the Treasury Department, the Federal Reserve, and the Department of Justice, to complete a series of research reports within 60 to 210 days, covering seven key areas:
- Consumer and investor protection
- Financial stability
- Combating illicit finance
- Maintaining U.S. leadership in the global financial system
- Promoting financial inclusion
- Fostering responsible innovation
- Exploring the possibility of creating a U.S. central bank digital currency (CBDC)
Then-Treasury Secretary Janet Yellen stated that the order struck "the right balance between promoting responsible innovation and addressing potential risks." The policy tone leaned towards caution, emphasizing the utilization of digital assets' "potential benefits" under the premise of robust regulation.
Regulatory Developments and Recent Adjustments
Driven by the executive order, various regulatory agencies initiated corresponding work. For example, the Federal Reserve established a "Novel Activities Supervision Program" aimed at strengthening scrutiny of banks' involvement in cryptocurrency activities. However, this trend has seen recent adjustments.
On August 15, 2025, the Federal Reserve announced the cessation of the aforementioned supervision program, a move interpreted by the market as one of the signals that U.S. regulators' stance on the crypto industry is softening. Furthermore, high-level personnel changes in the White House's digital asset regulation team occurred on October 15, 2026, with the chief crypto advisor concluding their term.
Bitcoin Market Performance Under the Policy Environment
There is a complex relationship between policy events and market reactions. On March 9, 2022, the day the executive order was signed, Bitcoin's price saw a significant increase, with the market generally viewing the exploration of a clear regulatory framework as a long-term positive, boosting industry sentiment.
Throughout the Biden administration's tenure, Bitcoin's price has shown overall strong performance. As of mid-October 2026, Bitcoin's price remained in the range of approximately $81,000 to $82,000, with a market capitalization of about $1.62 trillion. It should be noted that market prices are driven by multiple factors, including macroeconomics, market liquidity, the industry's own cycles (such as halving), and changes in the global regulatory landscape; the Biden administration's policies are just one component. Some market analyses suggest that the regulatory clarity expected from its policies provided support to the market, but the price breakthrough momentum near the end of the term was more related to market expectations for the next term's policies (such as Donald Trump's "crypto-friendly" statements at the time) and other factors.
Summary and Outlook
The Biden administration's cryptocurrency policy, guided by the 2022 executive order, has initially established a framework that prioritizes risk prevention while exploring innovation and leadership. Its impact is reflected in providing the market with expectations for a long-term regulatory path, but the implementation and enforcement of specific regulations are a gradual process and will adjust with economic conditions and political considerations.
For Bitcoin and the entire crypto market, the direction of U.S. government policy remains a critical variable. It influences institutional participation confidence, compliance costs for innovative projects, and global capital flows. In the future, regardless of who occupies the White House, the core challenge for policymakers will continue to be how to ensure financial stability and consumer protection without stifling technological innovation.
