Biden Administration reportedly is in the early stages of preparing regulation for Bitcoin

Given the global spread of Bitcoin (BTC), the US government is reportedly at the early stages of developing guidelines for the popular cryptocurrency and the entire crypto industry.

Sources familiar with the matter told Charlie Gasparino of FOX Business that the upcoming regulation, which will focus on crypto infrastructure and taxes, will be led by Treasury Secretary Janet Yellen and her deputy Wally Adeyemo.

Upcoming regulations could be severe

Sources told Gasperino that Gary Gensler, the newly appointed chairman of The US Securities and Exchange Commission (SEC) is waiting for instructions from the Treasury Department to develop a more precise legal framework for Bitcoin and cryptocurrencies.

While it is not clear when the regulation will be released, the US government has already proposed an anti-money laundering rule that requires crypto users to go through a mandatory Know-Your-Customer (KYC) process when making a transaction in Perform amount of $ 3,000.

Crypto is here to stay

The move has been criticized by various players in the crypto industry, including Kraken CEO Jesse Powell, who believe the initiative contradicts the pseudonymous nature of crypto.

Powell noted at the time that the U.S. government’s move could be the tip of the iceberg as he believes stricter regulations are on the way.

While it’s not clear whether the ordinance could include total crackdown on cryptocurrencies, Gasparino noted that it is almost impossible to ban cryptos right now as institutional investors take over the assets on a massive scale.

Because of this, Gasparino noted that “Crypto is staying here”.

Janet Yellen blows up Bitcoin

Yellen, who is at the center of the industry’s proposal for a regulation, may not surprise many as she has always criticized cryptocurrencies, especially Bitcoin.

Back in February, the largest cryptocurrency by market capitalization received some devastating blows from Yellen, which caused prices to drop on both occasions.

Although she claims to like Bitcoin’s potential, she believes that it is mainly used by criminals to carry out nefarious activities, including terrorist financing and money laundering.

Commenting on the use of Bitcoin in payments, she noted that due to its high energy consumption, it is highly speculative and inefficient in transactions.

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