Wednesday, January 20, 2021

Crypto cynic Nouriel Roubini believes that Joe Biden administration will crack down on crypto.

The Takeaway:

Crypto cynic Nouriel Roubini believes that incoming U.S. president Joe Biden will go much further than Donald Trump in controlling cryptocurrency.

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In a Twitter argument on Dec. 24, Nouriel Roubini, who is known for both his dislike of crypto and his ability to call market bottoms by mistake, called the sector a “cesspool.” He responded to Jake Chervinsky, a lawyer studying the fallout from the recent news that U.S. lawmakers were demanding that stablecoin payments implement on-chain Anti-Money Laundering Know-Your-Customer (AML/KYC) identification processes. Chervinsky argued that the idea currently had “exactly zero chance” of becoming an enforceable law.


Biden administration will crack down on cryptocurrencies. 

Chervinsky tweeted that the new anti-crypto law represents the “personal views” of Steven Mnuchin, the Treasury Secretary under Trump, soon to be replaced by Biden’s pick, Janet Yellen. “You are delusional,” a visibly irate Nouriel Roubini replied. He tweeted, “Biden’s team, starting with Yellen, who was my boss at CEA, will crack down on this criminal tax-evading & AML-KYC-TFC-evading crypto/shitcoins cesspool much more than Mnuchin. Get a life as you have become a crypto hired gun cheerleader/enabler.” The current Trump administration is not supportive of the crypto industry on record, and new regulations are more strict on the industry. 


FinCEN proposed new KYC regulations for crypto firms. 

Circle CEO Jeremy Allaire had the opposite view that of Nouriel Roubini on the Biden administration’s view on the crypto industry. He said that the new president would be supportive of the crypto industry. The U.S. Financial Crimes Enforcement Network (FinCEN) has proposed a rule that would instill record keeping and reporting requirements for transactions by or to a bank or money service business involving an “unhosted or otherwise covered wallet. The newly proposed regulation is in line with the Financial Action Task Force’s (FATF) Travel Rule, which calls for trading venues to share exchange originator and beneficiary identity information for exchange-to-exchange transactions greater than $10,000. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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