The “U.S. crypto regulatory crackdown” has begun, but it’s not a “Bitcoin ban,” according to the founder and CEO of Avanti Financial, Caitlin Long.
The forthcoming regulations would simply bring crypto laws into line with standard financial rules around taxes and compliance, according to Caitlin Long.
With the brutal crypto market crash leaving left Washington fumbling for a response. There has been a renewed focus on regulations in recent weeks
Public statements and announcements covering the IRS, the Office of the Comptroller of the Currency, FinCen, and the Secretary of the Treasury, among others, from May 5 to May 21, concluding the new regulations comprise a “compliance crackdown, according to chronology of nine news stories provided by Avanti’s CEO
“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.”
Long highlighted a May 20 Department of the Treasury report that called 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 read.
Long also pointed out the Federal Reserve is taking aim at the stablecoin industry as well with the Fed chair Jerome Powell putting out a statement yesterday.
“As stablecoins’ use increases, so must our attention to the appropriate regulatory and oversight framework,” he said. He then remarked:
“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.”