Crypto enthusiasts vs. US regulators. Former (and present) regulators and politicians are befriended and hired by crypto enthusiasts to protect them from regulation and scrutiny. Top US officials, on the other hand, are dubious of cryptocurrencies.
THE ANTI-MONEY LAUNDERING CUP
U.S. Treasury Secretary Steven Mnuchin stated in July 2019 that cryptocurrencies could pose a “national security risk.” Owing to their use in illegal operations, and that the Trump administration. Would not “enable digital asset service providers to operate in the shadows.” Munchin stated in a public hearing in February 2020 that he intended to “ensure that crypto enthusiasts aren’t exploited. For the equivalent of old Swiss secret number banking.”
Mnuchin, on the other hand, caved in as crypto lobbying pushed back. The implementation of a rule (announced in December 2020) that would also compel platforms. To collect information from clients and recipients for transactions over US$3,000. After her departure, Sigal Mandelker, the top U.S. Treasury official in charge of financial crimes until 2019. Objected to the Treasury rule: she is now also an employee at Ribbit Capital, a crypto investor.
“Because cryptocurrency transactions behave similarly to cash or negotiable instruments. The recordkeeping requirement in the Proposal is inappropriate,” stated Jack Dorsey. He is also the CEO of Square, in a comment letter to the regulation. In a somewhat paradoxical statement by the also-CEO of Twitter. A surveillance-capitalistic firm par excellence, “the inconsistency between the treatment of cash. And cryptocurrency will inhibit cryptocurrency adoption and invade individual privacy,” said the also-CEO of Twitter. And also a surveillance-capitalistic firm par excellence.
TRUMP’S “CRYPTO COMPTROLLER” OF THE CURRENCY BECOMES CEO OF BINANCE
Additionally, Binance, a cryptocurrency exchange, hired Brian Brooks, the Trump administration’s “Crypto Comptroller.” As its CEO in April 2021 Brooks, a former top legal counsel of Coinbase who was recently appointed. As acting Comptroller of the Currency (2020-2021), penned interpretive letters. That could make it easier for federal banks in the United States. To handle and use digital assets and currencies in the near future.
Former Democratic U.S. Senator for Montana Max Baucus became a consultant to Binance in March 2021. And former deputy chief of staff (2009-2012) and campaign manager for President Obama (2012) Jim Messina. Joined the board of Blockchain.com.
CAPTURING EX-REGULATORS AND MAKING THEM CRYPTO ADVOCATES AND LOBBYISTS
Ripple’s principal tactic against the SEC is not grandiose and victimizing language. Instead, the corporation has recruited Mary Jo White, the former chair of the Securities and Exchange Commission.
During the Obama administration, a consultancy firm, and two lobbying firms. One of which was founded by a former Republican House member from Texas. And the other by a former Hillary Clinton staffer.
Ripple isn’t the only company that hires and funds former regulators as advocates and lobbyists. Coinbase formed the Crypto Council for Innovation with asset manager Fidelity, payments startup Square. And investment firm Paradigm a week before its US$86 billion IPO in April 2021. Since 2015, Coinbase has spent nearly $700,000 on government lobbying.
The Coin Center, the Chamber of Digital Commerce (both created in 2014), the Association for Digital Asset Markets. the Blockchain Association, and the Virtual Commodity Association are among the many crypto organizations. That have joined the Council (the three were founded in 2018). Paul Atkins, former SEC commissioner (2002-2008). Chris Giancarlo, former chair (2017-2019) of the US Commodity Futures Trading Commission (CFTC). Mark Wetjen, former CFTC commissioner (2011-2015); and Mick Mulvaney. former congressman, gold and bitcoin enthusiast, and acting chief of staff in the Trump administration. Are among the Chamber of Digital Commerce’s board of advisors (2019-2020).
Jay Clayton, the former chair of the Securities and Exchange Commission (2017-2020), and Kevin Hassett. The former chair of the White House Council of Economic Advisers (2017-2019). Joined the advisory council of One River Digital Asset Management. A digital asset hedge fund, in March 2021. Chris Giancarlo (who was already a Chamber advisor) became a director of BlockFi in April 2021. A company that integrates cryptocurrencies into traditional financial and asset management products.