• President Biden and the Securities and Exchange Commission are working to take crypto out for good.
• The SEC has taken action against companies like Coinbase, pursuing them with Wells notices.
• It’s clear that the SEC is attempting to apply old methodologies to new technologies and sectors.
Biden and the SEC’s Attack on Crypto
The recent news of Coinbase receiving a Wells notice from the SEC is just one example of how President Biden and his administration are doing everything in their power to kill cryptocurrency in America. The SEC has met with Coinbase over 30 times in recent years, yet they still feel it necessary to persecute the exchange. This makes it clear that Biden wants to regulate digital currency without actually providing valid laws or regulations specific to cryptocurrencies.
What Old Laws Are Being Applied?
Another example of this came two years ago when Gary Gensler allowed a company called ProShares to unveil a new bitcoin ETF that was based on BTC futures rather than spot trading — even though many traders stated that physical BTC units were far superior. This ETF fell under 1940s law which only applied specifically to mutual funds; however, there have been no attempts by the SEC to update this law for cryptocurrency use.
Biden’s Initial Approach
When Biden first came into office he used an Obama-era policy which barred crypto companies from engaging in financial activities with banks operating within the United States. This policy was considered extremely restrictive as it prevented individuals and businesses from accessing banking services related to crypto payments, trading or investments — further limiting access for American citizens looking for alternative means of finance outside of traditional methods.
It appears that members of the SEC may be hesitant when it comes to fully embracing cryptocurrencies due their novelty, but they are quick at taking action against those who don’t fit within their current narrative — meaning those who don’t fit their interests or agendas get quickly targeted for punishment without much explanation or justification other than “regulatory compliance“.
It’s clear that President Biden and his administration do not want Americans having access or participating in any sort of alternative financial systems such as cryptocurrencies — evident by all the restrictive policies they’ve put into place since taking office as well as their attack on exchanges like Coinbase who have been compliant with regulatory requirements thus far.