U.S. Govt. Urged Anew for Fine Balance in Crypto Regulations

Jun 22, 2018 at 15:19

The United States Consumer Financial Protection Bureau acting director, Mick Mulvaney said that the government needs to find a fine balance in its oversight of the cryptocurrency ecosystem to continue flourishing while still being properly regulated.

Speaking at the Future of Fintech conference hosted by CB Insights, the official who also serves as the leader of the Office of Management and Budget, expressed his sentiments in favor of cryptocurrencies, noting that he is fiscally conservative and “was one of the founding members of the bitcoin caucus and blockchain caucus.”

 

Photo from theatlantic.com

 

However, he noted that proper regulation is important to protect investors but the government must do it in a way that investors and developers will not be discouraged from entering the market through unfair laws and regulations.

“We knew at an early point in Bitcoin that as with any developing financial technology we needed to find that sweet spot… if Mt. Gox became a regular occurrence it dramatically undermines confidence in the markets and prevents innovation and if we over-regulate and discourage people from entering the marketplace, that has bad consequences too,” Mulvaney explained.

“It’s a new and innovative technology, it’s a nonbanking system, it’s whatever. If people still can’t get access to their own money, that’s a problem. So the law’s functioning correctly there,” the official added, citing potential concerns that might arise with a lack of investor protection.

He also mentioned that at present, he is hopeful that application of an existing cryptocurrency law will not lead to unintended consequences.

“If for some reason we’re looking at you and the only way we can look at you is through the lens of the bricks and mortar financial institution, and because we do that it has this perverse or absurd result, that’s what we’re trying to identify and to prevent,” Mulvaney further stated.