Biden Administration Reportedly in Early Stages of Readying Regulation for Bitcoin

With Bitcoin (BTC) gaining widespread adoption globally, the United States government is reportedly in the early stages of developing regulatory guidelines for the popular cryptocurrency and the entire crypto industry.

Sources familiar with the matter told FOX Business’ Charlie Gasparino that the upcoming regulation, which will focus on crypto infrastructure and taxation, is being led by the Treasury Department Secretary, Janet Yellen, and her deputy, Wally Adeyemo. 

Upcoming Regulations Could be Strict

Sources told Gasperino that Gary Gensler, the newly appointed chairman of the U.S. Securities and Exchange Commission (SEC), is awaiting directives from the Treasury Department to develop a more concise regulatory framework for Bitcoin and cryptocurrencies. 

While it is not clear when the regulation will be made public, the U.S. government has already proposed an anti-money laundering rule that will require crypto users to undergo a compulsory Know-Your-Customer (KYC) procedure if they conduct a transaction of $3,000. 

Crypto Is Here To Stay

The move has been slammed by various crypto industry players, including Kraken CEO Jesse Powell, who believe the initiative goes contrary to crypto’s pseudonymous nature. 

Powell noted at the time that the move by the U.S. government could be the tip of the iceberg as he believes more stringent regulation is on the way.

While it is not clear whether the regulation may involve a total crackdown on cryptocurrencies, Gasparino noted that it is almost impossible to ban cryptos at this stage given the mass adoption of the assets by institutional investors. 

For this reason, Gasparino noted that “Crypto is here to stay.”  

Janet Yellen Blasts Bitcoin

Yellen being at the center of the proposed regulation for the industry may not come as a surprise to many because she has always been a critic of cryptocurrencies, especially Bitcoin. 

Back in February, the largest cryptocurrency by market capitalization received some devastating blows from Yellen, which sent its price crashing on both occasions. 

Although she claims to like Bitcoin’s potential, she believes it is mostly used by criminals to conduct nefarious activities, including terrorist financing and money laundering. 

Commenting on bitcoin’s use in payments, she noted that it is highly speculative and inefficient in transactions because of its high energy consumption.