Biden Is Silent on Crypto Connections: State of the Union Update

President Joe Biden delivered his first State of the Union address to Congress, set against the turmoil of Russia invading Ukraine, surging inflation, deadlock over his domestic legislative agenda, bitter political divisions in the country and lingering effects of the pandemic.

Biden said that Russian President Vladimir Putin thought he could divide the U.S. and its allies, but “Putin was wrong. We were ready.”

The president also unveiled a new economic plan after his “Build Back Better” package stalled in Congress. He calls for measures that he will say can boost U.S. manufacturing, shore up supply chains, promote renewable energy sources and reduce the federal budget deficit.

Read more:

• Biden Says Putin Bet Wrong on Splitting Allies: ‘We Were Ready’
• Biden Steps to Mic Under Shadow of Inflation Pain, Putin’s War
• Summers Says ‘More Dangerous World’ Requires an FDR-Like Plan

Biden Silent on Use of Cryptocurrency to Bypass Sanctions

Biden’s speech makes no mention of Russia’s potential use of cryptocurrency, which has emerged as a flashpoint as high-profile individuals, including former Secretary of State Hillary Clinton, have raised concerns about the possible use of digital assets to bypass sanctions.

Bloomberg News previously reported that the White House’s National Security Council and Treasury Department have asked crypto exchanges to take steps to ensure their platforms aren’t being used as a workaround. The surging price of Bitcoin--up by more than 17% over the past three days--is fueling speculation that the tokens are offering an escape hatch for sanctioned individuals and entities. --Allyson Versprille

Biden Rebrands His Stalled Spending Package

Biden sought to rebrand his spending package, formerly known as “Build Back Better,” into a proposal he’s calling “Building a Better America.”

It’s pretty much the ideas he proposed before -- only messaged as more about deficit reduction and reducing inflation. --Nancy Cook

Ukraine Gets 10 Minutes, Then On to the Economy

For all the discussion about how much the Russian invasion of Ukraine was going to change Tuesday’s speech, Biden spent less than 10 minutes talking about the conflict.

Then, he turned to the issue Americans care about most: the economic hardships caused by the Covid-19 pandemic. “We meet tonight in an America that has lived through two of the hardest years this nation has ever faced,” he said. “The pandemic has been punishing.”

From there, he moved on to laying out his first-year economic accomplishments, from plummeting unemployment to passing the American Rescue Plan and the Bipartisan Infrastructure Law. -- Jennifer Epstein

Biden Pushes for His Climate Agenda

Biden cast climate change as an opportunity to build a better, stronger nation, drive economic growth and save money.

He extolled the investments unleashed by last year’s bipartisan infrastructure law as a chance to become more resilient in weathering the consequences of climate change while promoting environmental justice.

He also touted the promise for investments in clean energy -- including tax credits for renewable power and electric vehicles -- to cut families’ energy costs an average of $500 a year, Biden said. It’s a reference to a Rhodium Group analysis in October. --Jennifer Dlouhy

Biden Calls For People to Stop Working From Home

Biden said Americans need to return to their offices after working at home during the pandemic.

“It’s time for Americans to get back to work and fill our great downtowns again,” he said, according to prepared remarks. “People working from home can feel safe to begin to return to the office.”

The vast majority of federal workers will once again work in-person, he said. --Josh Wingrove

Biden Summons Ovation for Ukraine’s Ambassador

Biden drew standing ovations as he praised Ukranians’ efforts to fight Russia and when he thanked Oksana Markarova, the Ukranian ambassador to the U.S. for attending the speech.

“In this struggle as President Zelenskiy said in his speech to the European Parliament ‘Light will win over darkness,”’ Biden said, referring to Ukraine’s president Volodymyr Zelenskiy. “The Ukrainian ambassador to the United States is here tonight,” he said.

Markarova put her hand over her heart and mouthed “thank you” to the president. --Jennifer Epstein

Oil Traders Cast Gloom Over Biden’s Evening

Oil traders cast some gloom over the evening shortly before Biden spoken, sending crude futures up about 5%. Prices jumped 8% in regular trading in New York on Tuesday.

Oil prices are at seven-year highs as rigorous post-pandemic demand has far outpaced the flow of crude supplies into the market. Rising energy prices are a mounting political problem for Biden.

GOP Lawmaker Raised in Ukraine Escorts Biden After Criticizing

Among the contingent of lawmakers escorting Biden into the House chamber is an Indiana Republican who grew up in Ukraine. Representative Victoria Spartz earlier in the day gave an impassioned plea for strong action against Russia for invading Ukraine and had some biting criticism of Biden.

“I talk from my heart. This is not a war. This is a genocide of the Ukranian people by a crazy man,” Spartz said at a news conference. She said Biden must “act decisively fast or blood of many Ukrainians will be on his hand too.” -- Joe Sobczyk

Commerce Secretary Skips Speech as Designated Survivor

Commerce Secretary Gina Raimondo isn’t at the Capitol for Biden’s State of the Union, taking the role known as designated survivor.

At least one Cabinet member always stays away to ensure continuity of government if a disaster occurs. -- Jennifer Epstein and Jennifer Jacobs

U.S. Will Ban Russian Aircraft From Flying Through Its Airspace

Biden will announce in his speech that U.S. airspace is being closed to Russian airlines, joining most European nations and Canada in response to the invasion of Ukraine, according to two people familiar with the government’s decision. The people asked not to be named discussing the issue prior to the president’s announcement.

The action is largely symbolic since earlier airspace closings have made it very difficult for Russian aircraft to reach the U.S. from most locations. Canada blocked two Aeroflot flights attempting to return to Russia from the U.S. on Monday.

Ukraine Envoy to Be Among Biden’s Speech Guests

Ukraine’s ambassador to the U.S. will be among the featured guests at Biden’s speech, offering a high-profile display of solidarity.

Ambassador Oksana Markarova will join first lady Jill Biden in a box traditionally reserved for individuals who will be recognized by the president during the speech because they represent policies or themes the White House is seeking to advance.

Among the eight Americans joining Markarova: Intel Corp. Chief Executive Pat Gelsinger -- who recently announced plans to construct a $20 billion semiconductor facility in Ohio -- and Frances Haugen, the former Facebook employee who disclosed internal documents that she said showed a failure to tackle pervasive disinformation and bullying on its platforms. --Justin Sink

U.S. Stock Futures Edge Higher Ahead of Speech

U.S. stock futures nosed higher in the run-up to Biden’s speech, clawing back after a day in which the three major equity indexes finished solidly in the red.

S&P 500 futures rose 0.3% at 7:45 p.m. in New York.

A Show of Ukraine’s Colors to Be Mounted by Lawmakers

A large bipartisan group of lawmakers wore blue-and-yellow ribbons, the color of Ukraine’s flag, to show solidarity with the nation under attack by Russia, according to Representative Mike Quigley, a co-chair of the Congressional Ukraine Caucus. -- Daniel Flatley

Lawmakers Test -- and Four Find Covid

Just days after a mask requirement was dropped for lawmakers attending the State of the Union, four Democrats revealed they tested positive with breakthrough Covid cases.

Testing was required for lawmakers attending the speech, and so far it has led to four of them disclosing infection: Senator Alex Padilla of California and Representatives Jamie Raskin of Maryland, Suzan DelBene of Washington and Pete Aguilar of California.

House Speaker Nancy Pelosi, 81, said on MSNBC that she wouldn’t wear a mask during the Biden speech because she doesn’t have preexisting conditions or young, unvaccinated children at home.

Most lawmakers arrived for the speech maskless, as did Brian Monahan, the Capitol’s attending physician.

Lawmakers were assigned seats in the House chamber with empty ones in between for social distancing, requiring some to watch from the gallery or mezzanine, where outside guests are usually placed. -- Eric Wasson and Billy House

GOP Pans Biden Even Before He Speaks 

Even before Biden makes his case, Republican lawmakers sought to blame him for the host of challenges facing the country and the world.

Leaders of the House Republican caucus, at a news conference earlier Tuesday, blamed the president for the Russian invasion of Ukraine, rising prices for gasoline, increased crime and an influx of migrants crossing the southern border with Mexico.

“Joe Biden and House Democrats are responsible for this state of the union in crisis,” House Republican Conference Chair Elise Stefanik of New York said. -- Zach Cohen

— With assistance by Larry Liebert