Regulation
Biden’s Crypto Policies Are Shaking Up the Crypto Community, But ‘Still a Long Way to Go,’ Expert Says – Coinbase Glb (NASDAQ:COIN)
Scott Johnson From Capital of Van Buren on Friday highlighted numerous regulatory actions taken by the Biden administration and Democrats that he says are stifling the process growth of the cryptocurrency sector.
JWhat happened: Johnsson’s commentary includes expansive securities definitions, enforcement actions against major crypto entities, and various political maneuvers that could significantly impact the industry.
What the Dems/Biden admins are STILL doing:
– The OCC refuses to implement Brian Brooks’ “fair access” banking rule to prohibit federally chartered banks from denying financial services such as loans to prospective customers for political or ideological reasons.
– Enforcement actions against…— Scott Johnsson (@SGJohnsson) May 30, 2024
Major points of contention include the Office of the Comptroller of the Currency’s (OCC) refusal to implement the “fair access” banking rule, the SEC’s aggressive enforcement actions against Coinbase Inc. (NASDAQ:CURRENCY), Binance (CRYPTO: BNB), AND Krakenand issuing Wells notices to major companies such as Consents AND Uniswap Labs (CRYPTO: UNI).
Additionally, the SEC’s new rules embed decentralized finance (DeFi) into broad regulatory frameworks, which Johnsson said have been enforced without adequate adherence to Administrative Procedures Law.
Additionally, Johnsson criticizes Treasury for inserting “broker” language into legislation to pass without debate, leading to IRS rules that he says violate constitutional amendments and risk banning DeFi in the United States.
He also points to the Department of Justice’s (DOJ) actions against cryptocurrency privacy tools such as Tornado Cash and Samurai Wallet, viewing them as overreaches that threaten innovation and privacy.
The Federal Reserve and other banking regulators have also come under fire.
Johnsson notes the Federal Reserve’s rejection of cryptocurrency bank Custodia’s application for membership and a master account, and joint statements from the Federal Reserve, FDIC and OCC warning of the risks associated with banks interacting with crypto assets.
These actions, he suggests, contribute to an environment in which banks are discouraged from dealing with cryptocurrencies, despite a growing number of Americans using digital assets.
Johnson concludes that there is “still a long way to go before anyone in this space has confidence that Democrats are actually turning the corner.”
Read also: Bitcoin spot ETFs see $48 million inflow as Ethereum spot ETF trading nears
Experts offer different perspectives
Leona HiokiCo-founder of INTMAXhighlights the importance of preserving privacy while preventing criminal abuse, suggesting that governments and cryptographers should cooperate without compromising individual privacy.
Eskil TsuCo-founder of GoPlussupports transparency but emphasizes the need for balanced rules that do not stifle privacy or innovation.
Vat WisherCo-founder and COO of Promrecognizes the need for regulatory frameworks, indicating that Brian Nelson’s recent comments on crypto mixers reflect a balanced approach to market transparency and the health of the financial system.
As the regulatory environment evolves, industry leaders and policymakers will gather at the Benzinga Future of Digital Assets event on November 19.
This event will provide a platform for in-depth discussions on these topics, offering insights into the future of digital asset regulation and its implications. implications for the cryptocurrency industry.
Read next: ‘Crypto Mom’ Hester Peirce Proposes US-UK ‘Digital Securities Sandbox’ for Blockchain Innovation
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