In a Twitter argument on Dec. 24, Nouriel Roubini, who is known for both his dislike of crypto and his ability to call market bottoms by mistake, called the sector a “cesspool.” He responded to Jake Chervinsky, a lawyer studying the fallout from the recent news that U.S. lawmakers were demanding that stablecoin payments implement on-chain Anti-Money Laundering Know-Your-Customer (AML/KYC) identification processes. Chervinsky argued that the idea currently had “exactly zero chance” of becoming an enforceable law.
@jchervinsky : you are delusional. Biden’s team, starting with Yellen who was my boss at CEA, will crack down on this criminal tax evading & AML-KYC-TFC-evading crypto/shitcoins cesspool much more than Mnuchin. Get a life as you have become a crypto hired gun cheerleader/enabler https://t.co/558ziHBUWg
— Nouriel Roubini (@Nouriel) December 24, 2020
Biden administration will crack down on cryptocurrencies.
Chervinsky tweeted that the new anti-crypto law represents the “personal views” of Steven Mnuchin, the Treasury Secretary under Trump, soon to be replaced by Biden’s pick, Janet Yellen. “You are delusional,” a visibly irate Nouriel Roubini replied. He tweeted, “Biden’s team, starting with Yellen, who was my boss at CEA, will crack down on this criminal tax-evading & AML-KYC-TFC-evading crypto/shitcoins cesspool much more than Mnuchin. Get a life as you have become a crypto hired gun cheerleader/enabler.” The current Trump administration is not supportive of the crypto industry on record, and new regulations are more strict on the industry.
FinCEN proposed new KYC regulations for crypto firms.
Circle CEO Jeremy Allaire had the opposite view that of Nouriel Roubini on the Biden administration’s view on the crypto industry. He said that the new president would be supportive of the crypto industry. The U.S. Financial Crimes Enforcement Network (FinCEN) has proposed a rule that would instill record keeping and reporting requirements for transactions by or to a bank or money service business involving an “unhosted or otherwise covered wallet. The newly proposed regulation is in line with the Financial Action Task Force’s (FATF) Travel Rule, which calls for trading venues to share exchange originator and beneficiary identity information for exchange-to-exchange transactions greater than $10,000.