Introduction
The past twelve hours have been exciting for investors in the crypto ecosystem. With Bitcoin showing positive signs of a strong year-end surge, things are looking up. The icing on the cake has been the recent announcement made by a high-ranking banking official in the United States government.
Brian Brooks, who is now the Comptroller of the Currency, a senior banking post in the government had some good news to share with the world.
In a CNBC interview, Brooks stated that the present administration is going to announce something quite favorable for Bitcoin in terms of regulations.
In this article, we will look at the main highlights of the interview and stress how this interview can single-handedly catapult Bitcoin to experience its next Bull Run.
Will United States Ban Bitcoins and other Cryptocurrencies?
Any time a US government representative plans to announce a regulation on cryptocurrencies, the world starts assuming the worst.
In this case, too, Brian Armstrong, who is the CEO of the Coinbase Exchange echoed the shared sentiment. He wanted clarity on the nature of regulations concerning Bitcoins and other cryptocurrencies.
Armstrong and many like him would be happy to know that Brooks categorically mentioned that the US government has no plans whatsoever to ban or suspend Bitcoins or any other cryptocurrency.
He also communicated to the community that the regulations are not going to be detrimental to the interests of cryptocurrencies in any which way. This can be seen as a serious attempt by the authorities to allay the fears of investors related to the industry.
Three Things that the Future Regulation is going to look at
- Preventing Anti-Social Activities (Terrorism and Money Laundering)-
Brooks sought to explain that the regulations when they are announced aim to remove impediments and question marks on some grey areas of Bitcoin use and circulation. Governments have for a very long time raised concerns about Bitcoin and other cryptocurrencies being used to fund terrorism and for money laundering. The proposed regulation seeks to create new processes to counter and check these.
- Integrating of Public Banks to the Payment Network-
Brooks’ previous stint at Coinbase as the Chief Legal Officer had already been lauded by the industry as something, which would improve engagement between the government and cryptocurrencies. Brooks stated that the new regulations would look at how and when banks could be able to tap directly into the Blockchain network for processing payments in Bitcoin. This would help with better transparency and faster payments.
- Regulations to enable Banks to provide Bitcoin Custody-
In what could be great news for investors, Brooks also talked about the new regulation as providing some kind of a safety net for investors. Once banks start acting as crypto custodians, they will be allowed to offer services. This would mean that more investors who are still hesitant of cryptocurrencies being outside the purview of the legal and formal system would be encouraged to start investing in the same.
When will the New Regulations Kick In?
Brooks was confident in saying that the administration is working on the same at the moment and he believes that it will be announced before President Trump ends his Presidency.
This means that the community can expect new regulations anytime in January.
According to the Bitcoin Era Login, this is good news for institutional investors who wanted more clarity from the government regarding Bitcoins and cryptocurrencies.
Brooks concluded the interview by stating that the aim of the government is to ensure Bitcoin and others emerge as a real promise of value for investors. He also was quick in dismissing that Bitcoin is still a bubble in 2020. This is likely to boost Bitcoin prices past the $20K mark in the coming few days.
Investors are using this interview to place their investments in Bitcoins. They expect that once the regulations roll out in January 2021, they are very likely going to be sitting atop Bitcoin’s greatest Bull Run ever.
