Biden Administration and Cryptocurrency
The Biden administration has made it clear that it is committed to promoting the development of responsible cryptocurrency regulations. The President-elect Joe Biden outlined his plans for a new regulatory framework in his speech at the Democratic National Convention (DNC), noting that he would “encourage innovation while ensuring consumer protection.” In addition, Vice President-elect Kamala Harris proposed several key measures during her campaign which focused on strengthening consumer protections within the crypto space as well as setting up an appropriate digital asset tax system and updating existing money laundering laws.
In December 2020, Treasury Secretary nominee Janet Yellen expressed her view that cryptocurrencies pose potential risks associated with market manipulation, cybersecurity threats, tax evasion, and illicit finance activity such as terrorism financing. While she acknowledged their potential benefits like lower transaction costs or improved access to financial services for those who are unbanked or underbanked, she said these should be balanced against “the need for enhanced safeguards”. As part of this approach towards regulation in 2021 we can expect increased scrutiny from US regulators around anti-money laundering compliance standards along with more rigorous enforcement actions taken against noncompliant exchanges operating inside America’s borders.
Under Trump’s tenure there was no comprehensive strategy regarding how best to regulate cryptocurrencies but most industry players welcomed Yellen’s commitment to balancing between fostering innovation whilst protecting consumers from frauds/scams through better oversight & governance practices by both government agencies & private sector entities alike. Moving forward into 2021 we can expect further clarity when it comes to taxation rules surrounding digital assets alongside greater stability amongst governing bodies worldwide; providing business owners & investors alike greater confidence when entering into any type of investment related activities involving cryptos – much like what they have experienced over recent years investing in stocks / bonds etc…
