Business Insider reports, Bitcoin fell to 4% after Biden’s nominee for Chairman of the Securities and Exchange Commission, Gary Gensler, says SEC will seek to eliminate fraud and manipulation.
Gensler’s announcement caused a bit of concern amongst crypto-holders who may already have fears of future government regulations on cryptocurrencies.
— blockmarvels (@blockmarvels) March 3, 2021
Although Gensler appears to be pro-crypto, the industry fears that he may over-regulate crypto.
In 2019, Investopedia published an article, “Why Governments Are Afraid Of Bitcoin,” which Highlighted that the lack of central authority is why governments fear cryptocurrencies.
Bitcoin quickly bounced back as expected on Wednesday, leaping to 50k per coin. However, some crypto holders are skeptical of new proposals for strenuous regulations becoming the norm.
In December of 2020, the U.S. Financial Crimes Enforcement Network (FinCEN) proposed “KYC” know-your-customer rules that would most likely eliminate anonymous transactions in the future by implementing new reporting requirements for “unhosted” digital wallets.