Bitcoin’s current bullish run carried by institutional players has initiated a debate around digital currencies which could define the next era of financial technology. Traditional financial giants, hedge funds, and fund managers around the globe are actively promoting bitcoin as an inflation hedge proving superior to the traditional hedging asset gold.
Companies now hodl 4.20% of the bitcoin supply on their balance sheets.
— Blockfolio (@blockfolio) December 7, 2020
this is an infrastructure change as big as the initial commercial Internet
"They will ultimately be supportive because this is an infrastructure change as big as the initial commercial Internet," says @jerallaire on his outlook for how the Biden Administration will handle #crypto #bitcoin pic.twitter.com/NiVoeVEziY
— Squawk Box (@SquawkCNBC) December 7, 2020
Former President Donald Trump was not a big believer in bitcoin and once infamously said, “I am not a fan of Bitcoin as it’s very volatile.” However, if we go by the words of OCC President Brian Brooks Bitcoin regulations are on the way and they are very focused on not killing it. In a recent interview with CNBC Brooks has said
“We’re very focused on getting this right. We are very focused on not killing this, and it is equally important that we develop the networks behind #bitcoinand other cryptos as it is we prevent money laundering and terrorism financing,”
"What we do need is clarity about what is allowed, and so we need some guidance for example whether banks can connect directly to blockchains as payment networks–the answer has to be yes," says @BrianBrooksOCC. #btc #bitcoin pic.twitter.com/yNOBqTZfIN
— Squawk Box (@SquawkCNBC) December 4, 2020
STABLEAct and U.S. Representative Maxine Waters Recent Letter To President Indicates Otherwise
Brian Brook’s comment for sure gave a lot of optimism to crypto enthusiasts about possible positive crypto regulations. However, some of the early proposals in the form of the STABLE Act and the recent letter by US Representative Maxine Waters to President-elect Joe Biden to rescind early guidance by the OCC indicates more rigorous regulations are on the way. Waters asked to cancel and an earlier proposal by the OCC that said national banks can provide services to stablecoin issuers in the U.S.
The Stablecoin bill in the form of STABLEAct is another example of how the new administration is already planning to take control of flourishing the crypto market and if the stance continues, many crypto firms might look to move overseas quite similar to 2018 when the crypto licensing rule forced many budding crypto companies to leave the US.