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 Businessâ€™ Charlie Gasparino reported Monday that the Biden administration is in whatâ€™s been described to him by people close to them as â€œthe early stages of developing a regulatory approach to the crypto markets.â€ 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:
He added that Treasury Secretary Janet Yellen is leading the U.S. governmentâ€™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: â€œWe donâ€™t know where theyâ€™re going with this. We donâ€™t know what exactly is going to happen.â€
While acknowledging that some countries are starting to outlaw cryptocurrencies, he said: â€œI donâ€™t think itâ€™s gonna happen here. Too many American investors are in the space right now.â€ In his opinion, â€œcrypto is here to stayâ€ and based on the people he has been talking to, the government will not outlaw cryptocurrencies, but he believes that â€œThere will probably be more regulations.â€
Furthermore, sources close to the SEC told him that the commission is debating whether to approve a bitcoin exchange-traded fund (ETF). â€œThatâ€™s a huge debate at the commission level between republican commissioners and the Democrats about this issue,â€ he said.
â€œGensler 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,â€ 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:
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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