US Politics
The president is entirely free to choose to prosecute or not prosecute based on whether he believes it's for the best. Prosecutorial discretion is part of the job of leading the executive branch.
Every single day in this country there are crimes that aren't prosecuted for a whole host of reasons.
Executive branch officials are given the authority to decide which cases to follow and which cases to let go based on all sorts of factors before them.
So yes, Biden absolutely could choose not to prosecute Trump on the grounds that we don't want to validate his victim narrative and promote his presidential ambitions.
That's one of the responsibilities of a president.