In a recent development, President Joe Biden has decided to bar his new communications director, Ben LaBolt, from engaging in legal matters, investigations, or contracts involving cryptocurrency or technology firms he previously represented.
Some of these firms include Meta Platforms Inc., Haun Ventures LLC, and Shopify Inc. Despite these restrictions, LaBolt will be allowed to advise the president on his approach to regulating cryptocurrency and social media companies, according to the White House.
LaBolt’s appointment comes amid increasing pressure on the Biden administration to enhance its involvement in Washington’s approach to digital currency.
Crypto executives have voiced their concerns over the lack of clear regulations in the industry, as investors face potential losses amounting to billions of dollars.
The restrictions placed on LaBolt are consistent with the ethical rules followed by other senior White House staff.
Having previously worked as a spokesman for Barack Obama’s presidential campaign and as an aide in the White House, LaBolt’s experience in the realm of communications is extensive.
His former clients at his communications firm include cryptocurrency exchange Uniswap and Andreessen Horowitz, an early investor in Coinbase Global Inc. LaBolt has also served as a spokesman for West Street, the family office of Meta CEO Mark Zuckerberg and his wife, Priscilla Chan.
The road to crypto regulation
President Biden has been known for his efforts to curb the power of big tech companies. As Robyn Patterson, a spokeswoman for the White House, said in a statement to Bloomberg Government, “The president drives our policy.”
Biden has also expressed his criticism of social media companies for allowing the spread of misinformation about the coronavirus, accusing the industry in 2021 of “killing people” with pandemic fiction.
The collapse of FTX in 2022 has added fuel to the fire, prompting a renewed push for legislation and rules to regulate the industry. On March 9, Biden signed an executive order (EO) on digital assets, which, although not specifying any regulatory actions, outlined an interagency process involving 16 high-ranking officials.
These officials are tasked with producing a series of elaborate reports, with deadlines ranging from 90 days to over a year from the publication of the EO.
As the Biden administration grapples with the complex issues surrounding cryptocurrency and social media companies, the restrictions placed on LaBolt highlight the need for ethical boundaries within the White House.
In an ever-evolving digital landscape, LaBolt’s expertise will undoubtedly contribute to Biden’s efforts to establish a fair and transparent regulatory framework for these burgeoning industries.
