Governments Regulations

Mnuchin: US Agencies “Likely” To Introduce New Crypto Rules

The United States’ Treasury Secretary, Steven Mnuchin, has said that US regulators will likely issue new cryptocurrency regulations. Specifically, Mnuchin argues that these new rules will make sure cryptocurrencies don’t “negatively impact” the existing financial system. 

Mnuchin predicts “more” regulations

This news came in a recent CNBC television interview. What’s more, the Trump administration has recently begun to become more active regarding cryptocurrencies. The administration has previously been staying quiet on the subject for nearly two years.

Now, however, both President Donald Trump himself and Mnuchin have recently let their views on cryptocurrencies become known. This has likely been brought on by Facebook’s announcement to create its own crypto, Libra. Unsurprisingly, the Trump administration’s views on crypto have been mainly negative.

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“We’re looking at all of the crypto assets,” Mnuchin shared in the CNBC interview. He also said that the United States intends to take a holistic view of the asset class. As such, he expects “more regulations” relating to the crypto sector.

“We’re going to make sure we have a unified approach and my guess is that there are going to be more regulations that come out from all these agencies.”

Crypto-friendly regulations seem unlikely

Previously, half a dozen of US regulators have already claimed some influence and involvement with cryptocurrency regulations, according to a recent Bloomberg report. For example, these regulators include the Securities and Exchange Commission (SEC), as well as the Commodities Futures Trading Commission (CFTC).

Nevertheless, increasing crypto regulations is a highly contentious issue. Although it is unclear exactly what sort of regulations this will entail, they will likely raise a lot of debate. Last week, a draft bill of an “anti-crypto” bill surfaced, purportedly from the House of Representatives.

Furthermore, Mnuchin’s most recent comments are bleak for those hoping that the US government will craft crypto-friendly regulations. Mnuchin said that, not only does he not expect to own Bitcoin within a decade, he also called the premier cryptocurrency a passing fad.

“I can assure you I will personally not be loaded up on Bitcoin in 10 years. I would bet, even in five to six years, I won’t even be talking about Bitcoin as Treasury Secretary.”

However, those keeping tabs on Mnuchin will hardly be caught off-guard by these latest claims. Mnuchin has previously erroneously referred to cryptocurrencies as “vehicles for money laundering”, despite the fact that less than 0.5% of Bitcoin transactions are used for illicit purchases.

Image Source: CNBC

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