The founder and CEO of Avanti Financial, Caitlin Long says the “U.S. crypto regulatory crackdown” has begun, but emphasised it’s not a “Bitcoin ban.”
She mentioned she was optimistic that the forthcoming rules would merely convey crypto legal guidelines into line with customary monetary guidelines round taxes and compliance.
1/ IT’S CLEAR a US #crypto regulatory crackdown is beginning but I’m optimistic bc many of the main gamers/companies have spoken already & the coverage is taking form: it is “pay taxes, comply w/ laws & don’t take shortcuts, & we’ll enable the innovation.” It’s NOT a “#bitcoin ban”
— Caitlin Long (@CaitlinLong_) May 20, 2021
There has been a renewed concentrate on rules in latest weeks and the crash of crypto markets over has left Washington fumbling for a response.
The CEO supplied a chronology of 9 news tales, public statements and bulletins protecting the IRS, the Office of the Comptroller of the Currency, FinCen and the Secretary of the Treasury amongst others from May 5 to May 21, which she mentioned all shared a standard them round compliance:
“It may not yet be over, but the pattern is pretty clear: it’s a compliance crackdown for sure, but path for ‘responsible innovation’ in US does seem to remain open.”
One of the examples Long highlighted was a report launched on May 20, during which the Officials on the United States Department of the Treasury referred to as for exchanges and custodians to report crypto transactions larger than $10,000.
“Leveraging this information — rather than introducing new requirements for taxpayers — is a proven way to improve compliance,” the report learn.
Long additionally identified the Federal Reserve is taking goal on the secure coin business as properly with the Fed chair Jerome Powell puttin out an announcement yesterday.
“As stablecoins’ use increases, so must our attention to the appropriate regulatory and oversight framework,” he mentioned. He then remarked, maybe with Tether in thoughts:
“This includes paying attention to private-sector payments innovators who are currently not within the traditional regulatory arrangements applied to banks, investment firms, and other financial intermediaries.”
Long characterised this as a “warning shot” saying that its “consistent w/ the theme–comply w/ laws & don’t take shortcuts (i.e., get fully regulated as a bank & pay the full regulatory freight).”
In the assertion Powell additionally revealed that the governing physique is transferring forward with plans to analysis easy methods to implement a U.S. central bank currency, or CBDC. The Fed chair famous the “key focus is on whether and how a CBDC could improve on an already safe, effective, dynamic, and efficient U.S. domestic payments system.”