In this roundup, we cover numerous cryptocurrency regulatory developments in the U.S., including President Trump’s crypto proposals, testimonies by the Federal Reserve chairman and the Treasury secretary, a crypto-friendly SEC proposal, and the IRS changing a crypto tax rule. We also cover China quarantining yuan bills, its central bank filing 84 digital currency patents, 40 German banks wanting to offer crypto services, several blockchain initiatives by the Indian government and more.
Trump’s Budget, Fed Chair’s Testimony, SEC Proposal
It has been a busy week for the U.S. government trying to regulate the crypto space. Perceiving cryptocurrency as a threat, President Donald Trump proposed a few measures to increase oversight of the industry in his new budget. He wants to return the Secret Service to the Treasury “to create new efficiencies in the investigation” of crimes, including those involving cryptocurrencies. He also proposed a budget of $127 million for the Financial Crimes Enforcement Network (FinCEN) “to combat emerging virtual currency and cybercrime threats.”
Also last week, Federal Reserve Chairman Jerome Powell testified before the House of Representatives Committee on Financial Services and Treasury Secretary Steven Mnuchin testified before the Senate Finance Committee. After answering questions about a digital dollar, Powell said “The idea of having a ledger where you know everybody’s payments is not something that would be, you know, particularly attractive in the United States context. It’s not a problem for China.” Mnuchin revealed that the Treasury will soon release new crypto regulations to increase transparency. Independently, the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, called bitcoin and other cryptocurrencies “a giant garbage dumpster.”
While the Department of Justice (DOJ) is criminalizing onchain privacy starting with mixers,