Former Biden Council of Economic Advisors Chair Jared Bernstein called crypto an asset with “almost zero legal use cases” that’s “pretty good for scammers,” arguing even Donald Trump’s pro-crypto stance can’t stop Bitcoin’s (CRYPTO: BTC) 40% decline.
The ‘Almost Zero Legal Use Cases’ Argument
Bernstein argued the “early stage excuse is probably past its sell-by date” for crypto’s volatility.
He claimed the asset hid behind complaints about regulatory regimes that diminished its value until the Trump administration embraced the industry.
“The crypto bros pretty much purchased the best Congress and president they could ask for,” Bernstein said. “The sheen really came off the rose, and its value proposition went pretty negative pretty quickly.”
He emphasized the regulatory shift didn’t help prices. Once Trump took office and completely embraced the industry, Bitcoin still fell 40% from its October highs.
Bernstein argued this reveals that even when you control the regulatory environment, assets lacking fundamental value eventually face investor risk-off.
The Lobbying Claims
Bernstein stated the crypto industry “lobbied up faster than any we’ve ever seen.” Campaign spending from crypto exceeded traditional finance by a multiple of 10 in the most recent election.
However, most payments were converted to dollars. When Bernstein claimed the Trump administration enriched itself by over $1 billion, he referred to sovereign dollars, not Bitcoin.
He noted that owning an exchange like World Liberty Financial (CRYPTO: WLFI) generates revenue whether the coin rises or falls.
Bernstein characterized the setup as “really pretty much a racket run by the Trump family at this point.”
The comment directly challenges the administration’s crypto positioning while Bitcoin trades down significantly from peaks.
The Market Context
Bitcoin fell 40% from October highs despite the Trump administration’s supportive regulatory stance.
Bernstein and co-author Ryan Cummings, former CEA member now at Stanford Institute for Economic Policymaking, argued this decline validates their thesis that crypto lacks fundamental value.
The regulatory environment improved significantly under Trump with pardons for crypto figures, dismissal of SEC lawsuits, and passage of the GENIUS Act establishing legal frameworks for stablecoins.
Despite these tailwinds, Bitcoin continued declining.
Bernstein’s argument centers on causation. If regulatory uncertainty was holding Bitcoin back, removing that uncertainty should have supported prices. The opposite occurred, suggesting regulatory concerns weren’t the primary issue.
Image: Shutterstock
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