As if we are kids needing protection by our big brother, Joe Biden has announced going after Bitcoin because of its involvement with crime. But, of course, his administration can play political double-talk all it wants. Still, it doesn’t sit well with Bitcoiners because they know it’s all a façade to stop crypto while saying it’s to protect the American people.
“This month, the United States will bring together 30 countries to accelerate our cooperation in combatting cybercrime, improving law enforcement collaboration, stemming the illicit use of cryptocurrency, and engaging on these issues diplomatically.” Whitehouse.gov
Despite Biden’s stance, Bitcoin is on a healthy climb after fumbling in the low $40K for the last few weeks. It first broke $50K in mid-February, and it went as high as $63K in mid-April. Several market factors have pushed it down over the last several months. Still, there is one factor currently bringing it back up.
Securities and Exchange Commission chair Gary Gensler commented that they aren’t interested in banning Bitcoin as China did during an interview by Representative Ted Budd (R-NC 13 District). Budd pressed him on the point, and Gensler made the SEC’s stance very clear:
“Our approach is really quite different,” SEC chair Gary Gensler.
China’s ban on Bitcoin comes from concerns about gambling fraud and money laundering, among the list of other things that people can do with money. Those are the same things that Biden seems to be worried about, but the truth is, all the same concerns come with fiat. However, Gary Gensler says the stance the SEC has taken is the exact opposite.
After running Bitcoin through a set of tests, it meets the standards for being legal tender. Thus, the SEC is only seeking to put protections in place for investors.
“Many of these tokens do meet the tests of being an investment contract, note, or some other form of security, that we bring them within the investment protection remit of the SEC,” SEC chair Gary Gensler.
Maybe Gensler should sit Biden down and explain that to him. He might have to draw some pictures or do a full-on PowerPoint presentation. But Biden needs a good talk. Going after Bitcoin isn’t going to work.
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