The author of this article, Leigh Cuen, is a New York City reporter. Her reports have been published in Vice, Business Insider, Newsweek, Teen Vogue, Al Jazeera English, The Jerusalem Post and more. Instagram is @leightuen.
Can you imagine a worse scenario than what former Treasury Secretary Steven Mnuchin left behind?
By Bitcoin veterans such as Square Crypto developer Matt Corallo and Coin Center director Jerry Brito And this extremely strict regulation proposal is Mr. Munuchin’s own personal revenge, when Janet Yellen, the next Secretary of Finance, proposed KYC (Know-Your-Customer, when opening a bank, securities account, etc. It is premature to say whether or not to approve the required identity verification) criteria.
Related article: Bitcoin advocates rebel against the Trump administration’s hasty cryptocurrency regulations
Given the turmoil created by the Trump administration, Bitcoin fans are eagerly optimistic about how regulators will work in the crypto space under President Joe Biden’s administration. ing.
“At the very end, Mr. Munewchin was overly cautious about the fraudulent use of cryptocurrencies that were not shared with law enforcement and intelligence agencies. Janet Yellen does not seem to have the same view,” Burrito said. “Yellen’s view seems to be quite general,” he continued.
In short, Yellen believes that there are both beneficial and detrimental ways to use cryptocurrencies. He has expressed his willingness to tighten regulations to prevent fraudulent use, such as terrorist financing, with the Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). There is a possibility of setting a keynote for government agencies such as.
“The SEC, OCC, and CFTC are choosing people who are familiar with cryptocurrencies,” Brito said. “It means that those institutions have in-depth knowledge to tightly regulate cryptocurrencies, or It may indicate that cryptocurrencies are now regarded as an important part of the economy and finance. ”
The transition is still early, but the Biden administration seems to have nominated Michael Barr, a former adviser to Ripple and a former US Treasury employee, to head the OCC. In the short term, Trump’s appointed SEC Commissioner, Hester Pierce, will continue his notorious securities market-friendly approach to cryptocurrencies. However, according to media reports, the Biden administration is soon considering appointing former CFTC chairman Gary Gensler as chairman of the SEC.
“New SEC chairman Gary Gensler, in addition to Ripple, has a fairly straightforward view of Facebook’s Libra project. These are securities and should be regulated by the SEC. That’s his opinion, “said Hailey Lennon, a partner at Anderson Kill law firm who specializes in cryptocurrencies. “We hope that in the next year or two, some proceedings currently in dispute and the new leadership of the SEC will make it clearer and less enforceable in the future. Can decide what to avoid. ”
Meanwhile, the White House is expected to appoint Professor Chris Brummer of Georgetown University as the CFTC chairman, Reuters reported. Mr. Bloomer had previously been nominated by President Obama, but was not approved by the Senate due to a political impasse. It is not yet clear who will be nominated in 2021 for key roles related to curbing terrorist financing, such as the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN).
“Regulations from FinCEN and OFAC may start to increase. There are some agreements with crypto companies, and OFAC has added the wallet address to the SDN (sanctions) list. “Even if there are more positive moves in the OCC, SEC, and CFTC, they will be balanced by adding regulations on KYC and anti-money laundering measures, strengthening monitoring of funding sources, and sanctions reviews.” Will be able to do it. ”
Sanctions are a hot topic in 2021. Throughout 2020, the Iranian government has issued a statement indicating its intention to use Bitcoin and other cryptocurrencies to circumvent bank sanctions. Immigrants from Iran and other countries have used Bitcoin to do exactly the same thing.
So far, the Biden administration has not been seen lifting sanctions. On the contrary, on February 18, the U.S. Treasury penalized payment service company BitPay for allowing users to trade with citizens of sanctioned countries such as Iran, Cuba and Ukraine. Made a statement. Regulatory moves on cryptocurrencies used by many Iranian Americans at home and abroad will reflect the White House’s approach to hawkish or dovish diplomacy in the Middle East.
Perianne Boring, the founder of a rights advocacy group called the Chamber of Digital Commerce, said, “The new administration’s senior management is critical of the wider crypto space. Shows. ” Therefore, Mr. Boring hopes that industry leaders will continue to work with lawmakers to “lay the foundation for the United States to take leadership” in the global crypto market.
U.S. crypto startups are on the global stage with more progressive legislative country-based startups as countries struggle to foster the “next Silicon Valley,” he said. It is said that it is competing. Other countries are trying to promote cryptocurrency companies, especially the domestic crypto mining industry. Many engineers believe that US leaders should also maintain the dollar’s dominance by promoting innovation in this tech space. After all, many of the major stable coins are still denominated in US dollars.
“The Biden-Harris administration and Congress need to make it clear that their commitment to digital assets and blockchain is a priority policy,” said Mr. Boring. “The Biden-Harris administration is now in the economy. Should focus on restoring full employment and ensuring quarterly and yearly economic growth. ”
Brito said he is particularly interested in who will be nominated as the head of OFAC and FinCEN, which will support Yellen’s efforts in sanctions and regulation as both bowls. He also agrees with Lennon and Bowling, who believe that new legal norms are planned to be introduced. No matter how harsh or business-oriented the upcoming ruling is, at least Biden hasn’t tweeted as much as Trump has criticized Bitcoin.
Mr. Brito said of the Biden administration, “It’s a time when everyone is still trying to solidify their feet and understand their priorities.” It will be. ”