Digital Currency Revolution Series: Regulatory Perspectives of US Treasury on Bitcoin

President Trump’s intentions of pressurizing the Federal Reserve for dragging its feet on interest rate cuts might be persisted. Quite a few analysts reckon such an aggressive policy that is yet another inadvertent advertisement for Bitcoin for the US president.

While the debate about whether President Trump could decide to unilaterally intervene to correct what he regards as an unfairly strong dollar, or more accurately to strengthen what he perceives to be unfairly cheap foreign currencies, has intensified in recent weeks.

President Trump stated that he would like to see the Federal Reserve cut interest rates soon. He argues that if the economy takes a downturn in the future then it will be more costly to take action then, rather than pre-emptively.

He tweeted stating that “it is far more costly for the Federal Reserve to cut deeper if the economy actually does, in the future, turn down! Very inexpensive, in fact productive, to move now. The Fed raised & tightened far too much & too fast. In other words, they missed it (Big!). Don’t miss it again”!

Amid myriad interests in Bitcoin derivatives trading following the spike in Bitcoin’s price.

Well, as per the twitter source, Bitcoin’s new volume persuaded the futures market, CME bitcoin futures observe massive growth of 63.5k contracts traded during last week.

While the United States Treasury Secretary Steven Mnuchin has given his stances on renewed bearish swings of Bitcoin, stating that he wouldn’t probably be talking about the pioneer cryptocurrency in as soon as five years. In an interview with “Squawk Box” CNBC on July 24, Mnuchin hinted new regulatory framework for the crypto-assets: “I won’t be talking about Bitcoin in 10 years, I can assure you that… I would bet even in 5 or 6 years I’m no longer talking about Bitcoin as Treasury Secretary. I’ll have other priorities… I can assure you I will personally not be loaded up on Bitcoin.”

The Treasury Secretary also stated: “we’re looking at all of the crypto assets… we’re going to make sure we have a unified approach and my guess is that there are going to be more regulations that come out from all these agencies.”

Mnuchin’s latest remarks follow a recent statement about how cryptocurrencies primarily exist as a vehicle for crime and speculative investment, saying, “I think to a large extent, these cryptocurrencies have been dominated by illicit activities and speculation.” 

In addition, Barry Silbert, the CEO and Digital Currency Group founder have admired the Treasury Secretary’s commentaries, stating that they were “complete and total validation of Bitcoin.”