As the United States Senate begins confirming leading positions in the trade and treasury, there is meaningful momentum in the crypto community in response. This is due to the profiles of several individuals who have reportedly been nominated, as well as expected economic measures by the upcoming government – both of which are expected to provide a positive boost to cryptocurrency growth.
While a few official nominations have been made and many confirmations are still pending, others are still in the nomination phase. Let’s do a quick loop through the swamp.
Confirmed with 84 votes, Janet Yellen will be at the helm of the treasury. At her confirmation hearing, Yellen outlined her support for Biden’s agenda, which includes a likely hike in taxes for the wealthy, to “ support the dollar ” to stabilize the dollar amid attempts to undermine current value through market manipulation abroad, and ensuring the stabilization of the US economy amid the current global COVID-19 pandemic. As for crypto, Yellen did not directly address her approach to regulation in space during her confirmation hearings; However, she did say that legitimate use of cryptocurrency should be encouraged, such as resources that use this kind of decentralized funding to “improving the efficiency of the financial system. “
Securities and Exchange Commission
One deal that the crypto community is particularly excited about is Gary Gensler, who previously served as Chairman of the Commodity Futures Trading Commission under President Barack Obama and as a Treasury Officer under President Bill Clinton. Have previously called blockchain technology “a catalyst for change,” Gensler has spoken out on the importance of cryptocurrencies and has say there is a “strong case” for it XRP classified as a security. He was also very outspoken about how blockchain technology could solve payment problems in the United States.
As the anticipated chairman of the Securities and Exchange Commission, Gensler will be in an excellent position to rally support behind a US central bank digital currency, especially given the institutional interest in this product. Gensler is also said to be instrumental in broad governmental crypto and blockchain measures, such as the consideration of a Bitcoin (BTC) exchange-traded fund, and he is expected to shift sentiment in his favor. Currently a professor of practice at the Massachusetts Institute of Technology Sloan School of Management, Gensler conducts research and teaches blockchain technology, digital currency, financial technology and public policy.
In addition, the SEC chairman departure Jay Clayton is also welcomed by crypto aficionados as he was notorious for being skepticism towards the digital financial sector. With Clayton stepping aside, coupled with his anti-crypto bias, the way is open for Bitcoin ETFs to become a reality.
There is already a row of financial institutions directed by Fidelity and investment firms pending applications for Bitcoin funds with the SEC and who will put pressure on Gensler when he takes office.
Office of the Comptroller of the Currency
Another office that comes into play during Biden’s transition is the office of the controller of the currency. Out is Brian Brooks, former head of OCC during the Trump administration, who, before stepping down, announced that banks can use stablecoins and blockchain to process payments. In what is considered a “interpretive letter, ”The OCC allows federally chartered banks to use cryptocurrencies with fairly stable prices for standard transactions. The letter also states that banks can participate in validating transactions on a blockchain, take an impressive regulatory step forward for stablecoins, and create more potential for cryptocurrencies.
“This is what decentralization is all about. In the world of crypto, there is no CEO. Crypto is about freedom, and if you didn’t believe freedom mattered last week, think again. “
Biden’s transition team from the beginning of February is expected to nominate Michael Barr as Brooks’ successor in the OCC. Prior to his tenure as a consultant at Ripple and a board member at LendingClub, Barr helped build the Dodd-Frank Act, which enacted strict rules for lenders and creditors to protect consumers in the wake of the housing market collapse. This unique combination of experience and credibility could be needed to drive favorable regulation and further growth of blockchain technology and cryptocurrency in financial services.
Commodity Futures Trading Commission
The latest appointment that should make investors bullish is Chris Brummer expected to become the next chair of the CFTC. As a member of the CFTC’s subcommittee and faculty director of Georgetown’s Institute of International Economic Law, Brummer Yellen will advise on regulatory issues related to cryptocurrency, while also potentially laying the groundwork for a more comprehensive digital asset derivatives market.
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Edmund McCormack is the founder and CEO of Dchained and is also a veteran of technology and crypto investments. For 15 years, Edmund has been active in the launch and adoption of technology and services that are now an integral part of everyday life, from social networks to the App Store. Through the intersection of technology and a community of investors and experts, Edmund has built the educational platform aimed at helping everyday individuals learn and get started with cryptocurrencies.