- The Biden administration is at the early stages of developing a new legislative framework for cryptocurrencies.
- According to sources close to the matter, the SEC chair Gary Gensler is likely to approve a Bitcoin ETF.
- Cryptocurrencies are here to stay, and the new asset class is unlikely to be outlawed.
The United States President Joe Biden’s administration is working on a new regulatory approach for cryptocurrencies.
Regulations are coming to crypto
Fox News Correspondent Charles Gasparino cited a few sources close to the Biden administration that it is in the early stages of developing a regulatory approach to the crypto markets. The American journalist further indicated that the legislative framework around cryptocurrencies is being “debated” from inside the Biden administration.
Former Goldman Sachs banker and crypto professor Gary Gensler, who was recently confirmed as the new head of the Securities & Exchange Commission (SEC), is now waiting for further direction from Treasury for the overall policy before he develops a more specific regulatory approach to crypto.
Gasparino suggested that regulations could come very soon, although he did not provide any clarity around the new legislation.
Based on Gasparino’s discussion with his sources, he believes that cryptocurrencies are here to stay, and it is unlikely that the new asset class would be outlawed. He explained:
Too many American investors are in this space right now. There will probably be more regulation.
The regulatory approach toward cryptocurrencies is now at the “second inning,” being developed by the Biden administration through the Treasury. The Fox Business Correspondent added that we could expect new regulations or announcements in at least over a month.
Gary Gensler likely to approve Bitcoin ETF
The SEC is debating whether to approve a Bitcoin ETF, with discussions between the Republican and Democrat Commissioners. Gasparino cited securities lawyers that were familiar with the matter and said:
Gary Gensler will throw the Republicans a bone by approving this [Bitcoin ETF] as a way to sort of curry favor with them over other broader policy goals he wants to do at the SEC.
The SEC has been long delaying the issuance of firm regulation around digital currencies. In an interview with Forbes, SEC Commissioner Hester Peirce mentioned that Gensler is likely to be “sympathetic to the call of regulatory clarity” in the cryptocurrency space.
Janet Yellen is the Treasury Secretary and is leading the approach, Gasparino added. Despite the optimistic outlook on cryptocurrency regulations provided by Gasparino, Treasury Secretary Yellen previously issued a warning about the danger that Bitcoin poses to investors and the public in February.
Yellen previously stated that she fears cryptocurrencies are often used for illicit finance and highlighted the large amount of energy required to process Bitcoin transactions. She added that cryptocurrencies are a high speculative asset class, and people should be aware of its volatility.
Additionally, at the Treasury Department, deputy secretary Wally Adeyemo will be the “point man on crypto,” according to Gasparino’s sources.