The founder and CEO of Avanti Financial, Caitlin Long says the “U.S. crypto regulatory crackdown” has begun, but emphasized it’s not a “Bitcoin ban.”
She said she was optimistic that the forthcoming regulations would simply bring crypto laws into line with standard financial rules around taxes and compliance.
1/ IT'S CLEAR a US #crypto regulatory crackdown is starting but I'm optimistic bc most of the major players/agencies have spoken already & the policy is taking shape: it's "pay taxes, comply w/ laws & don't take shortcuts, & we'll enable the innovation." It's NOT a "#bitcoin ban"— Caitlin Long (@CaitlinLong_) May 20, 2021
There has been a renewed focus on regulations in recent weeks, with the brutal crypto market crash leaving left Washington fumbling for a response.
Avanti's CEO provided a chronology of nine news stories, 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."
“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.”
Long characterized this as a “warning shot” saying that its “consistent w/ the theme--comply w/ laws & don't take shortcuts (i.e., get fully regulated as a bank & pay the full regulatory freight).”
In the statement Powell also revealed that the governing body is moving ahead with plans to research how to implement a U.S. central bank currency, or CBDC. The Fed chair noted the “key focus is on whether and how a CBDC could improve on an already safe, effective, dynamic, and efficient U.S. domestic payments system.”