Joe Biden’s choice to head key regulators could redefine cryptocurrency policy in the coming years, though it’s unclear exactly how.
The AP news agency on Saturday announced that Biden, the Democratic nominee, had beaten President Donald Trump, the first-term Republican in an election marked by division and contagion. continued spread of the COVID-19 pandemic. Although the former vice president did not highlight crypto issues in his campaign, some Biden supporters hope he will lobby for reforms of technology policies, while big companies are hoping escape from antitrust investigations.
To be sure, at press time Trump did not give in and protracted court challenges were still a possibility due to the proximity of the race and the polarizing environment (even though Trump̵7;s campaign lost a Legal war numbers and concessions are a tradition, not a requirement).
According to Noelle Acheson, director of research at CoinDesk, the fall in bitcoin’s price due to the prospect of a steady transfer of power leaves holders disappointed by expecting a failed election – with multiple recounts. – and an economy stagnant due to a lack of stimulus will hurt the US dollar, according to Noelle Acheson, director of research at CoinDesk.
“With a declared victory, the ‘chaos factor’ diminished, but the theory of currency devaluation remained. Delayed but still intact, ”Acheson said, adding that the Biden administration along with the Republican Senate would mean easier monetary policy, which would boost asset value in stock. term.
At press time, the price of bitcoin (BTC) has dropped more than 4.5% to $ 14,866.11, after falling as low as $ 14,612.52.
As for how the Biden administration will actually handle cryptocurrencies, little is known from Biden’s filings, except for one of his more than 40 years as a senator in Delaware that occurred before the publication of the whitepaper. Today’s famous Satoshi Nakamoto lays out the principles and practices of bitcoin. The closest suggestion we have from his profile is that almost three decades ago, Biden introduced a pair of invoices that could be outlawed, inadvertently spurring the development of the PGP key. .
His main impact may come from whom he nominates to head US federal financial regulators.
The president-elect has so far kept secret about who his campaign will nominate to key positions, but his top choice to run the US Treasury Department is believed to be Reserve Bureau Governor. Federal Lael Brainard, who is overseeing the Boston Fed research on the digital dollar.
The president-elect has so far kept the secret of whom his campaign will nominate to key positions, but his top choice to run the US Treasury Department is believed to be the Governor of the Reserve. Federal Reserve Lael Brainard, who is overseeing Fed Boston research on the digital dollar.
On the other hand, former Commodity Futures Trading Commission Chairman Gary Gensler could also be exploited to help Biden’s team plan to oversee Wall Street, The Wall Street Journal Friday report. Gensler calls blockchain technology a “catalyst of change” in a 2019 CoinDesk release.
Kristin Smith, the chief executive officer of the Blockchain Association, told CoinDesk last month: “We don’t hear many names floating around other positions.
There could be “a lot of change” in the way the United States approaches cryptocurrencies under Biden’s presidency, though that’s good or bad for the industry, Smith said.
“If we’re looking at management, I think our ideal scenario is to have someone familiar with the positions,” she said.
John Collins, a partner at consulting firm FS Vector, told CoinDesk last month that while cryptocurrencies may be a low priority for the upcoming administration due to the economy and other pressing issues. , the space should still have room to grow.
“Things like crypto custody guides for banks, I don’t see where that is going. I wouldn’t expect a Biden [Office of the Comptroller of the Currency] I also think it will be difficult to get some general acceptance about all token sales, ”he said. “However, there is an understanding that financial services are changing and the regulatory structure needs to be dynamic and change with it, and cryptocurrencies and cryptocurrencies as well as the open payment network are one. an important part of that. ”
Collins also said Biden’s tenure is likely to see political appointees coming from the cryptocurrency sector, which has been rare so far.
Indeed, Vice President-Elect Kamala Harris’ team has included Ryan Montoya, former chief technology officer at Sacramento Kings, who oversees the NBA team’s use of various blockchain-related tools and platforms, according to Decrypt Media.
UPDATE (November 7, 2020, 17:35 UTC): This post has been updated to note that Vice President-elect Kamala Harris’ team includes former Kings CTO of Kings Ryan Montoya and adds additional comments.
UPDATE (November 7, 2020, 23:38 UTC): This article has been updated to complement comments made by Noelle Acheson, CoinDesk’s chief research officer, on bitcoin’s price action.
UPDATE (November 8, 00:10 UTC): Added the foundation of Gary Gensler’s stance on blockchain technology.