New US Chief of Staff: Bitcoin is Good, ‘Not Manipulable by Any Government’

This week, following the scheduled leave of John F. Kelly, United States President Donald Trump has chosen the pro-Bitcoin Mick Mulvaney to serve as the acting White House Chief of Staff beginning 2019.

According to the Washington Post columnist Matt O’Brien, Mulvaney has been vocal about his support of Bitcoin (BTC) and in a speech covered by Mother Jones praised the decentralized nature of Bitcoin as a consensus currency.

In 2016, Mulvaney reportedly said that the Federal Reserve “effectively devalued the dollar” and emphasized that the exercise of such control is not possible with a cryptocurrency like Bitcoin that is “not manipulable by any government.”

Is it Good For Bitcoin?

Having a high profile official and an influential member of the Trump administration is certainly positive for the long-term growth of the asset class.

While the neutral stance of Mulvaney towards the cryptocurrency sector could affect the mindset of regulators and lawmakers in the U.S. to a certain extent, it realistically cannot have a short-term impact on the roadmap implemented by commissions like the U.S. Securities and Exchange Commission (SEC) or the Commodities and Futures Trading Commission (CFTC).

The presence of pro-Bitcoin and crypto officials in the U.S. government, however, could encourage other government officials to evaluate cryptocurrencies in a neutral way and analyze the benefits that the decentralized financial systems can bring.

In Sept. 2017, the central bank of Finland, for instance, released a research discussion that explicitly described the inefficiency of regulating blockchain protocols. The research concluded that Bitcoin is not and cannot be regulated because the protocol operates under strict rules implemented by the community sustained by miners, developers, and node operators.

The paper read:

“Bitcoin is not regulated. It cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts. Bitcoin’s design as an economic system is revolutionary and therefore would merit an economist’s attention and scrutiny even if it had not been functional. Its apparent functionality and usefulness should further encourage economists to study this marvelous structure.”

As seen in the paper of the central bank of Finland, it is possible for a central bank or a government to analyze the structure of Bitcoin in a neutral manner and create practical regulatory frameworks around it without restricting the growth of companies in the industry.

Currently, in regards to Bitcoin and even Ethereum, the SEC has clarified that Bitcoin is not considered a security under existing laws, essentially approving the infrastructure surrounding it.

Over the past several months, the SEC in the U.S. and other authorities in the global market have been primarily working on the integration of strict Know Your Customer (KYC) policies to eliminate money laundering in the cryptocurrency market.

Neutral Evaluation

The existence of a high ranking government official in the U.S. government that understands the purpose of digital currencies could have a long-lasting effect on the cryptocurrency industry and could encourage others to evaluate the asset class under a different light.

However, as the New York Post reported on Dec. 16, Mulvaney once described President Trump as “a terrible human being,” triggering political analysts to question how long the new chief of staff can remain in office.


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Author: Joseph Young
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PRESIDENT TRUMP APPOINTS BITCOIN PROPONENT AS WHITE HOUSE CHIEF OF STAFF

President Donald J. Trump has announced that he will be naming Mick Mulvaney as the new acting White House Chief of Staff. Mulvaney is a well-known Bitcoin proponent and has previously expressed his support of blockchain technology. 


MULVANEY: NEW ACTING CHIEF OF STAFF

Mick Mulvaney, who’s currently the director of the US Office of Management and Budget (OMB), has been named Acting White House Chief of Staff and will reportedly assume the position at the end of the year.  He will be succeeding the post from John F. Kelly.

“I am pleased to announce that Mick Mulvaney, Director of the Office of Management & Budget, will be named Acting White House Chief of Staff, replacing General John Kelly, who has served our Country with distinction. Mick has done an outstanding job while in the Administration,” President Trump tweeted.


According to CNN, Mulvaney will not be resigning as director of the OMB while he is acting White House Chief of Staff. Citing sources familiar with the situation, CNN reports that it is President Trump who wants Mulvaney to keep his current role as OMB director as well. The latter has been occupying the position since February 2017.

 GOOD NEWS FOR BITCOIN

Mulvaney is a well-known Bitcoin and blockchain proponent, spearheading the Blockchain Caucus – a soundboard for policy creation handling blockchain technology as well as the growing impact of virtual currencies.

“Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services, and I am proud to be involved with this initiative,” Mulvaney previously stated.

Mulvaney is yet another appointment of President Trump who seems to be favoring the development of the cryptocurrency industry. In September Bitcoinist reported that the President has appointed Elad Roisman as an SEC commissioner.

Roisman has previously demanded regulations, which treat the industry “in a fair and transparent manner, provide clarity and certainty to the markets and investors.”


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Author: GEORGI GEORGIEV
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Trump Task Force to Aid Crypto Crime Investigations

U.S. President Donald Trump signed an executive order Wednesday creating a task force that will focus in part on developing guidance for cryptocurrency fraud investigations.



The “Task Force on Market Integrity and Consumer Fraud,” according to the executive order, casts a wide net in its focus on consumer fraud. Yet notable for the crypto industry is its mention of “digital currency fraud,” which is one of a number of areas in which the task force will “provide guidance for the investigation and prosecution of cases involving fraud.”

It’s not clear in what form the guidance will take, but the task force may ultimately produce some kind of report for the Trump administration on this front.

Yet it’s not surprising that the administration would move in this direction. Earlier this year, the U.S. government indicated that it was working toward a “comprehensive” strategy around cryptocurrencies, with a focus on market fraud. In February, the U.S. Department of Justice formed a cybersecurity task force that includes cryptocurrencies as part of its mandate.

“A lot of these schemes involve bitcoin and other cryptocurrencies which do not flow through the traditional financial system,” Deputy Attorney General Rod Rosenstein said at the time. “What we’re working on now with our cybercrime task force is a working on a comprehensive strategy to deal with that.”


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Author: Muyao Shen
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Russian Parliament Approves First Readings of 3 New Crypto-laws.


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Russia’s parliament, the Duma, has overwhelmingly voted in favor of the draft cryptocurrency-themed On Digital Financial Assets bill, with 410 MPs voting in favor, and only one voting against, per media outlet Novaya Gazeta.

According to the Duma’s official website, the Russian parliament also voted in favor of two parallel bills, one on “digital rights” and the other on crowdfunding.

The bills will open the door for crypto and blockchain regulations to be imposed by financial authorities, and will give legal definition to key crypto-terminology, such as smart contracts, mining and cryptocurrencies.



The Duma website quotes Pavel Krasheninnikov, the Chairman of the Committee for State Development and Legislation, as saying the three bills will now be debated together for their second reading, allowing for “conceptual and regulatory synchronization.”

Anatoly Aksakov, the head of the Duma’s Financial Markets Committee, presented the three bills at a plenary meeting of the Duma, and noted, “By defining concepts [such as cryptocurrency, and so on], we will be able to provide legal protection for the users of these tools.”

A Russian appeals court has already decided to recognize cryptocurrency holdings as legal “property” in a high-profile case, saying that it had based its decision on the government’s bill. Some politicians, meanwhile, have called for key amendments to be made to the bills before they pass into law.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Tim Alper
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