The new president of the United States is not only the new election and the new beginning for the US citizens but also an important challenge for the whole world and multiple industries. One of the biggest industries to take the first hit on it is the crypto world. Bitcoin has been increasing in popularity for some time.
The increased popularity of Bitcoin and the number of new Bitcoin users are asking for some new opportunities. The newly elected president Biden and his administration might be the key to the changes and progress of the Bitcoin industry. Or it might be not. There are still a lot of uncertainties and dubious questions, through the crypto future seems bright for now.
Within the past period, Bitcoin has gone up 300%, Etherium up to 700% and some other currencies have also experienced some of the biggest heights. All of this only happened within the past 12 months. The trend is driven by institutional investment and buy-in from big payments companies, which is why additional attention is driven to the implementation of the new regulations.
So what is the specific future and direction of the administration to handle cryptocurrency policy. There is no specific answer, but one is for sure, its new administration is taking more responsibility for this topic rather than the previous one. While the personal attitude by Biden and Harris is still unclear, the elected ministers engaged in the potential crypto word, are promising.
Gensler, who was chosen by Biden as an SEC chairman, turned out to be the best candidate and the best news for the crypto flag-wavers. Yet it might actually turn out to be a great opportunity for space. This will not be the first high position for Gensler, as he is the former chairman of CFTC, which is known as the Commodity Futures Trading Commission. Gensler finished the 12-week cryptocurrency course at MIT back in 2018, which is now a great investment in his position and career ladder. The course was named “Blockchain and Money” and has testified before Congress regarding the cryptos not once.
Gensler also told that there is currently nothing better than the gold behind it and the many bitcoiners wanted to hear exactly this.
Gensler gave his interview regarding the great potential of the cryptocurrencies and the crypto market overall back in 2019. Not only he thinks that the potential of the market is simply great, but also thinks that technological change can be a catalyst for changes in real life. By this, he then clarified that the biggest catalyst in the industry could be the crypto and that Bitcoin and other cryptos might have been Nakamoto’s most enduring early contribution to the real-life catalyzation process.
Even then he was considering the novel Facebook currency Libra and Ripple’s XRP token as securities and that they should be more regulated for the overall safety and fairness of the crypto market. He also emphasized the importance of the proper regulatory authority, by which he inclined to the SEC. While this might definitely sound like a valid reason, it did not come well to the XRP users. The SEC, on the other hand, does not label XRP as security and instead labels it as Ripple’s sales of XRP, which is the unregistered securities offering based on the agency solely. This is something Ripple does a lot to advance the value of its XRP.
On the other side according to the authorities and financial representatives, there is another issue with the industries supporting cryptocurrencies. Those include the gambling industry and US-approved crypto casinos, which is one of the leading sectors in the customer cryptocurrency usage. Which is one of the leading customers and users of cryptocurrencies. With the new Biden’s administration, some changes are still expected to happen in the nearest future.
Gensler also said that the crypto exchanges have not yet been appropriately brought within the public policy frameworks. As for the future he is willing to see further and more regulations within the securities sector. Gensler is the former SEC chair, and soon he might be occupying the position to the IPO of currency. Some more regulations have already been introduced and implemented by the SEC.
Back last month, the Financial Crimes Enforcement Network, also known as the FinCEN proposed the new customer information gathering rules for the crypto wallet providers. Some of the companies, such as Square, Coinbase as well as Kraken, did not seem to be very excited and happy about the news. The new initiative deepened the conversations and the negotiation process, as well as the opposition of the minds, from the Wall Street investors and the crypto users. While the investors were very happy about the new initiative and the more regulated crypto market, the users were very unhappy. Most of the crypto users enjoy the space and the freedom of action, which is provided by the crypto assets and the lack of governmental interference. Now, when some new rules and regulations are to be implemented, the dissatisfaction of the users seems to be inevitable.
Biden’s new candidacy for the financial regulator caused mixed feelings in the society. Though it has caused the massive ovations and satisfaction of the flag-wavers. The new financial regulatory group includes the names of Reena Aggarwal, Chris Brummer, Simon Johnson, and Lev Menand.
One of those candidates, who is Aggarwal is the Georgetown finance professor, who has not once moderated a panel discussion on cryptocurrencies and is a big believer in the potential of blockchain technology. Brummer on the other side is also the professor of Georgetown University who hosts the fintech podcast, edited the academic textbook on crypto assets and regulation. He has also testified to Congress about the Libra token. Johnson is an MIT Sloan professor, who has co-authored a book on blockchain’s potential on the global finances and economy. Last but not least is Lev Menand, who is the former advisor Deputy Treasury Secretary of Sarah Raskin and has helped in leading the push for the development of the US digital dollar.
Among the choice of Biden’s new candidates is the former Fed chair, Janet Yellen. Now is the relevant pick for the Treasury Secretary. She has previously announced her opinion regarding the cryptos, which is not very much praised by the crypto users, as in her comment she said that she is not a fan of crypto assets at all. Her opinion is backed up by the argument that cryptos are one of the best opportunities for illegal financial activities. She also said that it is not a stable store of value and does not constitute legal tender at all.
While none of the above mentioned might sound appealing to the bitcoin lovers, Yellen also said in the Fed that she would not like to see any authority to be engaged in regulating the bitcoin in any way. She also said that the financial regulators have to choose every innovative way when it comes to crypto regulations. She is not likely to think the Treasury has jurisdiction over crypto either.
While there is no definite planning and the strategy so far, at least it is not announced, the US crypto regulations should mostly depend on the SEC, headed up by a crypto expert, Gensler, who is the OCC. The position was previously occupied by Brian Brooks, who was a huge crypto friend, though stepped down. Heath Tarbet, who was the CFT of SEC has also stepped down back in December though has not been replaced by anyone yet.