Crypto-5 Questions Biden Management Should Solve About Crypto

  Crypto-5 Questions Biden Management Should Solve About Crypto   Crypto-Investors looking forward to Bitcoin ETFs may face stricter rules on money laundering and financial stability. The stock market's recovery from last year's Covid-19 crash is a testament to the unprecedented level of federal stimulus that has been pumped into the economy in the past twelve months. One of the asset classes that benefit the most from the recovery in the financial market is undoubtedly cryptocurrencies. According to FactSet, in the last twelve months Bitcoin BTCUSD has increased 548 %, while Ethereum ETHUSD has increased nearly 690 %. The fate of this race may largely depend on the regulatory stance of US President Joe Biden and her administration regarding the burgeoning crypto economy. In the coming months and years, Biden's top five regulatory questions that will greatly impact crypto investors are as follows: - Who will be the Comptroller of the Currency? The agency responsible for leasing and supervising national banks is typically one of the more ambiguous federal financial regulators. Crypto advisory Securrency has caught the attention of the crypto community by advocating integration with the crypto economy by Brian Brooks, Currency Chief Financial Officer. - Are Cryptocurrencies a Threat to Financial Stability? There are some supervisors claiming that these instruments are enabling the growth of a new "shadow" banking system that threatens the stability of the US financial system. Given this situation, OCC will not be the only financial regulator concerned with the use of stablecoins. Rashida Tlaib, Michigan's Democratic Representative, recently proposed a bill that would require issuers of stablecoins to acquire a banking regulation and buy Federal Deposit Insurance Corporation insurance or keep reserves in the Federal Reserve. The purpose of this request is to ensure that all fixed currencies can be easily converted into US dollars on demand. This financial stability issue means that other regulators, including the Federal Reserve and the Treasury Department, may try to regulate Stablecoins in the coming years.

Crypto-Investors looking forward to Bitcoin ETFs may face stricter rules on money laundering and financial stability.

- How Will the Government Prevent Crypto Money Laundering? The most pressing regulatory challenge that crypto investors will have to face is a new decision by the Financial Crimes Enforcement Network, banks and other intermediaries to keep records of customer identities for their records and verification. Jerry Brito of the think tank Coin Center said the Biden administration would take a more rational approach going forward. - What Will Happen to the Ripple Case? Gary Gensler, who is expected to be approved as the Chairman of the Securities and Exchange Commission, awaits many crypto issues that need to be addressed. The most important of these is a lawsuit filed by the SEC against Ripple in December. In its complaint, the SEC accused Ripple and its executives Brad Garlinghouse and Christian Larsen of selling more than $ 1 billion in digital currency without registering with the SEC. While SEC officials have made public that they do not believe Bitcoin or Ethereum are securities that need to be registered, the lawsuit shows that the SEC sees Ripple differently. “I was surprised that the case wasn't filed long ago as Ripple is so different from Bitcoin or Ethereum,” said Angela Walch, Law Professor and Cryptocurrency Specialist at St. Mary's Law School. It's not actually a decentralized currency, because you essentially have one company that manages it, ”she explained., Walch added that if the SEC wins, they will go a long way in helping define which types of digital assets will be viewed as currency and which ones as securities. - SEC, Bitcoin ETF'lerini Onaylayacak Mı? Crypto enthusiasts applauded Gensler's candidacy to lead the SEC, given his history of teaching blockchain and digital currencies at the MIT Sloan School of Management. Coin Center's Brito argued that his participation in the role of president would be good news for many financial services companies trying to sell funds traded on the Bitcoin exchange. Several major financial services companies have applied to offer Bitcoin ETFs, including Wisdom Tree, Morgan Stanley MS, and VanEck. In theory, investors can opt for Bitcoin ETFs. These ETFs can be traded just like traditional stocks. Commenting on Gary Gensler, "someone who loves regular markets," Brito comments, "It is better to allow investors to participate regularly in this asset class than to have a well-regulated ETF." said.  

Source : MarketWatch

 

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