The Biden administration is reportedly developing a regulatory framework for the cryptocurrency markets. The new chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, is waiting for direction from the Treasury to establish cryptocurrency regulation.
New Crypto Regulation Being Developed by Biden Administration
Fox Business’ Charlie Gasparino reported Monday that the Biden administration is in what’s been described to him by people close to them as “the early stages of developing a regulatory approach to the crypto markets.” He noted that the number one priority is infrastructure, followed by taxes.
Another area, which he said is being debated within the Biden administration, concerns crypto regulations by the SEC. Last week, MIT crypto professor Gary Gensler was confirmed to lead the commission. He previously served as the chairman of the Commodity Futures Trading Commission (CFTC). Gasparino explained:
SEC Chair Gensler is waiting for some direction from the Treasury for the overall policy of cryptocurrency regulations before he develops a specific regulatory approach for crypto which will likely be the types of enforcement actions he goes after.
He added that Treasury Secretary Janet Yellen is leading the U.S. government’s crypto regulatory efforts and Deputy Secretary of the Treasury Wally Adeyemo is the point man on crypto at the Treasury Department.
Commenting on talks of possible crackdowns, regulations, and outlawing cryptocurrencies, he emphasized: “We don’t know where they’re going with this. We don’t know what exactly is going to happen.”
While acknowledging that some countries are starting to outlaw cryptocurrencies, he said: “I don’t think it’s gonna happen here. Too many American investors are in the space right now.” In his opinion, “crypto is here to stay” and based on the people he has been talking to, the government will not outlaw cryptocurrencies, but he believes that “There will probably be more regulations.”
Furthermore, sources close to the SEC told him that the commission is debating whether to approve a bitcoin exchange-traded fund (ETF). “That’s a huge debate at the commission level between republican commissioners and the Democrats about this issue,” he said.
“Gensler will throw the Republicans a bone by approving this as a way to sort of curry favor with them over other broader policy goals he wants to do at the SEC,” he continued, noting that some examples are ESG investing and the types of disclosures companies have to do going forward, including political contributions. In conclusion, he described:
What we know for sure is that we are in the second inning, I believe, of the regulatory approach being developed by the Biden administration through the Treasury.
As for the time frame of when these regulations will come to fruition, he expects that it will take at least a month.
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