Regulation
Implications for Gary Gensler and SEC Oversight
Current Republicans have been paving the way for more pro-Bitcoin and pro-crypto policies. This is evident in the stances taken by Republican presidential candidate Donald Trump, who took a pro-crypto stance at a recent event. W. Scott Stornetta, considered one of the co-founders of blockchain technology, joined David Lin for a conversation about Bitcoin and its future.
He said that if the Republican candidate wins the presidency, it could lead to a significant increase in pro-Bitcoin policies. This would likely encourage businesses that have been waiting offshore to enter the US market.
Additionally, a recent U.S. Supreme Court ruling, known as the Chevron ruling, could further impact the cryptocurrency landscape. This decision shifts more legislative and regulatory power from the executive branch to Congress. This could potentially limit the SEC’s authority, especially under current chairman Gary Gensler, who has taken a broad and sometimes controversial approach to cryptocurrency regulation. Regardless of the outcome of the election, these changes suggest a more favorable environment for cryptocurrencies in the United States.
As for President Biden’s proposed 30% tax on cryptocurrency mining, if Democrats win, there could be some adjustments or softening of that tax, especially with a new candidate entering the race. The political landscape around cryptocurrency has become increasingly partisan, reflecting broader debates about privacy versus regulation and traditional party lines.
He also hinted that a weaker dollar environment could be beneficial for alternative currencies like Bitcoin. He explained that to address this issue, it is important to first consider stablecoins, especially second-layer ones that aim to track a basket of currencies. Such stablecoins could find a niche in a weakening dollar environment.
For Bitcoin, its future largely depends on its gradual integration into the global economy. The recent approval of Bitcoin ETFs, sanctioned by Gensler, is a step toward greater integration. Currently, over 20% of the US population is involved in cryptocurrencies, which shifts the narrative toward Bitcoin becoming a more integral part of the financial system.
This growing acceptance could lead to a more favorable environment for cryptocurrencies in the United States. While this may or may not be a partisan issue, it points to a future where cryptocurrencies, including stablecoins and Bitcoin, are more integrated into the economy.