Sources close to the Biden administration have revealed that a new crypto regulatory framework is being developed.
According to him, newly appointed SEC chair Gary Gensler is waiting on the Treasury to enforce regulations.
The guest panelist said that his sources told him that the administration is in the “early stages of developing a regulatory approach to the crypto market.”
Matters being discussed primarily include infrastructure and taxation. He also notes that Gensler will look to develop specific guidelines following more general guidance from the Treasury.
Referring to the market’s price correction, Gasparino said that it could be related to news that the US was cracking down on the asset class,
“The Biden administration is going to react to cryptocurrency and essentially its widening use…and it’s more on this notion of a crackdown from the Biden administration.”
However, Gasparino does not believe that the U.S. will drop a “nuclear bomb” and ban cryptocurrencies. He states that too many American investors are entrenched in the market for that to be a likely option.
As for news on a bitcoin ETF, there is a “huge debate” going on at the commission level between Democrats and Republicans. Furthermore, according to him, at least one will likely be approved.
The US’ crypto position
Reports emerged earlier this year that the Biden administration was worried about the state of the crypto market. These concerns included the rising presence of China’s digital yuan, as well as investor protection. The administration has only offered sparse commentary on the matter so far.
Treasury Secretary Janet Yellen has also spoken about cryptocurrencies in the past, though her position is not as friendly. While she has warmed up ever so slightly to the asset class, her last public remarks indicate a wariness. Yellen believes that cryptocurrencies could be used for money laundering and financing illicit activities.
Gensler, on the other hand, is well known for his knowledge and support of cryptocurrencies. The SEC Chair has taught related courses at MIT and acknowledges the transformative potential. Investors have some reason to be optimistic about regulation for this reason, though there is likely much deliberation that will happen first.