Since US President Donald Trump shared his thoughts on Bitcoin in a tweet last July, crypto investors have been nervously awaiting word when the government will launch a formal crackdown on emerging technologies.
It now appears that this crackdown may be imminent in the coming years as the newly released White House budget proposal for 2021 recommends that the U.S. Secret Service be moved under the Treasury Department to investigate crypto-related crimes.
This was not the end of the White House attack on crypto-currencies, as US Treasury Secretary Steve Mnuchin later called the lack of regulation around crypto-markets a “national security issue”.
The secret service is supposed to monitor the emerging markets; is that a bad thing for investors?
As for the question of who will be responsible for investigating crimes committed with crypto money, the budget proposal suggests moving the secret service under the Treasury Department to “prepare the nation for the threats of tomorrow.
“TECHNOLOGICAL ADVANCES IN RECENT DECADES, SUCH AS CRYPTO-CURRENCIES… HAVE LED TO MORE COMPLEX CRIMINAL ORGANIZATIONS AND REVEALED STRONGER LINKS BETWEEN FINANCIAL AND ELECTRONIC CRIMES AND THE FINANCING OF TERRORISTS… THE BUDGET PROPOSES A LAW RETURNING THE U.S. SECRET SERVICE TO THE TREASURY DEPARTMENT TO CREATE NEW EFFICIENCIES IN THE INVESTIGATION OF THESE CRIMES,” THE PROPOSAL SAYS.
The impact on investors could be mixed, as it could deter new retail investors from entering the markets due to the potential impact of the upcoming search, while at the same time it could lead to an unprecedented level of maturity in the coming years. Either way, it is certainly a development that should be closely monitored by all market participants.