The United States is about to get serious with drafting a regulatory approach for the cryptocurrency sector as the market continues to grow. This is largely thanks to the mass entry of institutional and retail traders over the last few months.
Biden administration starts work on a crypto regulatory approach
Sources close to the Biden administration have revealed that officials are now working on a new regulatory framework for the cryptocurrency space. The United States has yet to draft an all-inclusive regulation for the cryptocurrency sector despite being one of the leading crypto markets in the world.
FOX Business’s Charlie Gasparino talked about the regulatory environment in the United States while answering questions about Bitcoin exchange-traded funds. Gasparino claims that sources have told him that officials are beginning to develop a regulatory approach for cryptocurrencies.
According to Gasparino, newly appointed Securities and Exchange Commission chair Gary Gensler is currently waiting for the US Treasury to enforce the regulations. He added that his sources revealed to him that the administration is in the early stages of putting together a regulatory approach to the crypto market.
The SEC and other regulatory agencies are currently talking about issues such as infrastructure and taxation, he added. Gasparino pointed out that Gensler is also planning to develop specific guidelines following more general guidance from the Treasury.
The US will regulate and not crack down on crypto
There have been rumors in recent days that the US Treasury will crack down on some financial institutions for laundering money using cryptocurrencies. Gasparino believes that the rumors led to Bitcoin’s massive sell-off last weekend.
However, Gasparino doesn’t believe that the United States will crack down. Instead, the US will regulate the market. Gasparino claims that the crypto market has grown massively in recent years, and there are a lot of big names in the sector. This will make it tough to crack down on cryptos as some countries did.
While talking about the Bitcoin ETF proposals, Gasparino said there is a huge debate ongoing at the SEC between Democrats and Republicans. However, he believes at least one of the proposals will be approved.
The SEC had previously rejected all Bitcoin ETF applications it received. However, there is a renewed optimism within the crypto space that a Bitcoin ETF could be approved this year following Gensler’s appointment.