Why crypto’s future may hinge on Biden’s administration
Regulators may also soon scrutinise the world’s biggest cryptocurrency more closely, following its whirlwind rally and near quadrupling in price this year.
Possible headwinds could come from Joe Biden’s incoming administration. The industry has generally faced challenges with Democrats, who prefer more regulation and oversight, said CoinShares’ Meltem Demirors.
On the other hand, the US’ top currency regulator, Brian Brooks, warned that the new administration may roll back regulations meant to protect consumers. For example, national banks were allowed this July to provide cryptocurrency custody services, but this might possibly come undone with Biden in the White House, according to Brooks.
Any measures will depend on who fills the administration’s main roles. For instance, Janet Yellen, Biden’s pick to helm the Treasury Department, has said she is ‘not a fan’ of bitcoin, calling it ‘highly speculative’. Yellen has also commented on cybersecurity concerns around anonymous cryptocurrencies.
Forbes’ Roger Huang posited that one avenue the administration could take is Treasury-based enforcements that severely restrict or even ban self-hosted cryptocurrency wallets.
Over at the SEC, bitcoin-friendly Gary Gensler may also possibly replace Jay Clayton, viewed as anti-crypto, as chairman.