Crypto-friendly faces poised for positions in Biden administration

As the US Senate begins confirming leadership positions at Commerce and Treasury, the cryptocurrency community is responding with great momentum. This is due to the profiles of various individuals that have reportedly been proposed, as well as the expected economic measures of the next government that should contribute to positive growth dynamics in the crypto space.

While some official appointments have already taken place with numerous confirmations, others are still in the appointment phase. Let’s quickly bypass the swamp.

Treasury

Confirmed by 84 votes, Janet Yellen will lead the Treasury Department. During the confirmation hearing, Yellen emphasized her support for Biden’s agenda, which includes a likely tax increase for the very wealthy, stabilizing the dollar in the face of attempts to weaken its current value through manipulation of foreign markets, and stabilizing the U.S. economy in the face of the current global pandemic of COWID-19. As for cryptocurrencies, Yellen did not directly address her approach to regulation in this area during her confirmation hearing; however, she did say, for example, that legitimate use of cryptocurrencies should be encouraged. B. Ways to use these forms of decentralized finance to make the financial system more efficient.

Securities and Exchange Commission

The appointment of Gary Gensler, who previously served as chairman of the Commodity Futures Trading Commission under President Barack Obama and as Treasury official under President Bill Clinton, is of particular interest to the crypto community. Earlier, Gensler called blockchain technology a catalyst for change. He has not been shy about talking about the importance of cryptocurrencies and has publicly stated that there is a strong case for classifying XRP as a security. He also put a lot of emphasis on how blockchain technology could solve payment problems in the United States.

As the likely chairman of the Securities and Exchange Commission, Gensler will be in the best position to gain support for the Fed’s digital currency, especially given the institutional interest in the product. Gensler will also play a key role in broad government efforts related to crypto and blockchain, including. B. in the Bitcoin Exchange Fund (BET) review, and is expected to change its mind in her favor. Currently a professor of practice at MIT’s Sloan School of Management, Gensler researches and teaches in the areas of blockchain technology, digital currency, financial technology, and public policy.

In addition, the departure of SEC Chairman Jay Clayton is also welcomed by crypto-enthusiasts, as he was known to be skeptical of the digital finance industry. Clayton’s retirement aside, combined with his anti-crypto bias, the stage is set for bitcoin ETFs to become a reality.

A number of financial institutions, led by Fidelity, and investment firms have already filed bitcoin funds with the Securities and Exchange Commission and will press Gensler when he takes office.

Office of the Financial Controller

Another entity that has received particular attention during Biden’s transition is the Office of the Comptroller of the Currency. Out comes Brian Brooks, the former head of the OCC under the Trump administration, who announced before his resignation that banks could use stablecoins and blockchain to process payments. In a so-called interpretive letter, the OCC allows federally chartered banks to use cryptocurrencies with relatively stable prices for standard transactions. The letter also calls on banks to participate in the validation of blockchain transactions, taking an impressive step forward in regulating the economy and creating more potential for cryptocurrencies.

Before he resigned, Brooks publicly declared the importance of decentralized finance:

This is the essence of decentralisation. In the crypto world, there is no CEO. Crypto is about freedom, and if you thought last week that freedom wasn’t important, think again.

Biden’s transition team is expected to appoint Michael Barr as Brooks’ successor at the OCC in early February. Before becoming an advisor to Ripple and a board member of LendingClub, Barr co-wrote the Dodd-Frank Act, which imposed strict rules on lenders and creditors to protect consumers after the collapse of the housing market. This unique combination of expertise and credibility can contribute to favorable regulation and further growth of blockchain technology and cryptocurrencies in the financial services industry.

Commodity Futures Trading Commission

The final appointment that should make investors optimistic is that of Chris Brummer, who is expected to become the next chairman of the CFTC. As a member of a subcommittee of the CFTC and faculty director at Georgetown’s Institute of International Economic Law, Brummer will advise Yellen on regulatory issues related to cryptocurrencies and potentially lay the groundwork for a broader derivatives market for digital assets.

The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent those of Cointelegraph.

Edmund McCormack is the founder and CEO of Dchained and a veteran of crypto technology and investing. Over the past 15 years, Edmund has been actively involved in the adoption and use of technologies and services that have become an integral part of everyday life, from social media to the App Store. Through the intersection of technology and a community of investors and experts, Edmund has created an educational platform aimed at helping ordinary people learn and get started with cryptocurrencies.

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