Due to the scheduled leave of John F. Kelly, the United States President has made a new appointment. President Donald Trump has chosen pro-Bitcoin Mick Mulvaney to serve as the acting White House Chief of Staff from 2019.
Mulvaney has been vocal about his support of Bitcoin, reported Washington Post’s, Matt O’Brien. During a speech covered by Mother Jones, the prospective White House Chief of Staff lauded the decentralized nature of Bitcoin as a consensus currency.
According to reports, in 2016, Mulvaney reportedly spoke about the Federal Reserve. He said the Federal Reserve devalued the dollar, and that the exercise of such control is not possible with a cryptocurrency like Bitcoin.
This is because the currency cannot be manipulated by any government.
Good News For Bitcoin?
Such remark by a high-profile official in the Trump administration will most likely boost confidence in the crypto community. The neutral stance of Mulvaney towards the cryptocurrency sector will also have its effect.
The perspective of the U.S. regulators and lawmakers would be changed. But, it would also be unable to have any serious impact on some commissions and agencies. Such as the U.S. Securities and Exchange Commission (SEC) or the Commodities and Futures Trading Commission (CFTC).
The presence of pro-crypto officials in the U.S. government will certainly affect other governments. It will encourage other government officials to view cryptocurrencies in a neutral way. They will also analyze the benefits in the decentralized financial systems properly.
In 2017, the Central Bank of Finland released a research. It described the inefficiency of regulating blockchain protocols. The research concluded that Bitcoin is difficult to regulate. This is major because the protocol carries out under strict rules by the community. Quoting the paper:
Bitcoin is not regulated. There is no need to regulate it because as a system commits to a protocol. Its apparent functionality and usefulness should further encourage economists to study this marvelous structure.
Deducing from the paper of the Central Bank of Finland. There is a possibility for a central bank to analyze the structure of Bitcoin in a neutral manner. It can also create practical regulatory frameworks around it. This can accomplish without restricting the growth of companies in the industry.
Presently, regarding Bitcoin and Ethereum, the SEC has made clarifications. It states that Bitcoin does not come under a security under existing laws, essentially approving the infrastructure surrounding it.
This statement by a high-ranking U.S. government official that understands digital currencies is commendable. It would encourage others to evaluate the currency from a different perspective.