While the outgoing President Donald Trump shared his views on cryptocurrencies by tweeting that he is “not a fan of Bitcoin and other cryptocurrencies”, the incoming 46th President Joe Biden has made no public declaration about his stance on cryptocurrencies so far, which makes it difficult to foresee the impact of his election on the cryptocurrency market.
But what can be said is that he is likely to understand that the mentality around Bitcoin – and cryptocurrencies in general – is changing at a rapid pace. Favorable regulation in the US would probably be beneficial to this market and result in more investors to using a crypto trading platform. This would particularly be the case now that big companies are entering the world of Bitcoin, like PayPal, MicroStrategy, and Square.
A Globally Friendlier Tone Towards Cryptocurrency Regulation
“I think what we see with a Biden administration is an opportunity to get some fresh faces into the key regulatory agencies that might be more willing than some of the other regulators that we have today to move forward on policies that would be good for crypto,” said Kristin Smith, executive director of the Blockchain Association.
Joe Biden is currently working on setting up his transition team, and he recently declared that the crypto-savvy and Wall Street veteran Gary Gensler will be the one leading the US financial policy transition team.
Joe Biden’s Potential Cabinet Picks Are Already Crypto-Savvy
Gary Gensler was the head of the CFTC (Commodity Futures Trading Commission) from 2009 to 2014. The CFTC is the American body regulating the US derivatives markets, including monitoring the activity of cryptocurrencies and blockchain. Gary Gensler is known for testifying before Congress about these areas.
Gary Gensler could also “help Biden’s team plan out oversight of Wall Street” declared The Wall Street Journal. Some other cabinet picks have also shown interest in crypto-related matters, like Lev Menand, Chris Brummer, Simon Johnson, and Mehrsa Baradaran, which could lead to potential pro-crypto heads of US federal financial regulators.
While this could be positive for the industry to have someone leading the transition that knows about cryptocurrencies and blockchain, it could also mean that the industry could be scrutinized with a particularly keen eye. It remains to be seen in what direction the financial transition will go, and whether or not crypto-savvy politicians will step up in the new government and move into the White House.
The recent presidential election has been somewhat chaotic. No-one was expecting the race to be so tight, and Trump still hasn’t actually conceded victory to Biden at the time of writing, pending various lawsuits in tightly contested states. There is still a high degree of uncertainty regarding the transition phase, but news about Joe Biden’s new transition team and potential candidates haven’t gone unnoticed by the crypto-sphere, as there are some pro-crypto protagonists and this could mean a lot in terms of crypto-regulation and adoption in the US.