Biden’s govt. already seems divided on Bitcoin as newly appointed SEC chief Gary Gensler is Bitcoin pro but Treasury Secretary appointee Janel Yellen called Bitcoin a FUD. The new Biden administration is taking over with promises of better healthcare, writing off student loans, and stimulus checks worth $2,000 for the Americans to cope with the ongoing pandemic.
Bitcoin in Biden Administration
Joe Biden became the 46th President of the United States after a months-long controversial counting process followed by a coup attempt by Trump supporters after they invaded Capitol Hill during a Congressional vote counting. The administration change also brought high hopes among bitcoin enthusiasts who believe that the new administration would be open-minded towards the nascent technology which in recent times is increasingly becoming the choice of many institutions.
However, the new appointees in the Biden administration who would be responsible for regulations around fintech and cryptocurrency seem to share quite conflicting views especially the new Treasury secretary Janet Yellen and SEC chief Gary Gensler.
Treasury Secretary vs SEC Chief: The Contrasting Views on Bitcoin
Janet Yellen, the newly-appointed Treasury Secretary created quite a storm a couple of days back when she shared her views on Bitcoin, calling them a highly speculative asset that might be used as a tool for terror financing ( a bitcoin FUD that has been debunked quite often). She went onto talk about stricter regulations for crypto assets to keep a check on their use for illicit activities.
On the contrary, the newly elected SEC chief Gary Gensler who has also headed CFTC in the past even though did not make any comment on the future of regulations since his appointment is a well-known crypto advocate who has also taught about bitcoin at one point.
The two administrative chiefs who would be responsible for mitigating the future of regulations for digital assets in the US sharing such contrast views on digital assets has crypto proponent on their heels. A few legislative bills for digital assets including the infamous crypto wallet and custody bill as well as the STABLEAct haven’t gone down well with the crypto community.
However, it is also important to note that the Biden administration has already frozen the controversial crypto wallet AML regulations after coming into power, thus again proving that his administration would be open to public feedback and criticism.
— Bloqport (@Bloqport) January 21, 2021
Bitcoin Price Reacts to Administration Views
Bitcoin price fell below the key support level of $35,000 yesterday and looked bearish in the short term. The top cryptocurrency might see a boost in price in the coming days as the new stimulus deal is finalized where the Biden administration has promised $2,000 stimulus checks to citizens.
Every stimulus package deal is followed by a bullish market reaction both from the crypto as well as traditional stock markets, as money flows into these markets from people looking to invest in safe-haven assets.
Former President Trump made it clear that he was no big fan of bitcoin which made many believe that his departure would bring in positive changes for the crypto industry. A few in the Biden administration looks equally non-understanding the potential of bitcoin, but the fact that many others like SEC Chief and the new OCC chief share a crypto connection could play in Bitcoin’s favor.