With help from Derek Robertson
Today the crypto world has a strong new champion. Or at least part of it was.
The election of Rishi Sunak as leader of the UK Conservative Party paved the way for him to become prime minister. Other Notable Milestones — He will become the foremost global leader to openly embrace the use of blockchain technology to reshape financial markets.
Sunak, who has worked at Goldman Sachs and a hedge fund, is traditionally a business-friendly conservative who wants to use technology to give London an edge over other financial hubs. I think.
While his arrival promises to elevate the global political standing of cryptocurrencies, it also reveals a widening rift within the crypto world itself.
Crypto industrywelcomed his promotion, seeking a friendly regulatory environment as he strives to develop and market new financial products. “This is nothing short of positive,” said Simon Jones, London-based CEO of Voltz, a decentralized financial protocol for interest rate swaps that launched in June.
Members of the cryptocurrency movement, stemming from the rejection of existing financial institutions and financial institutions, are treating it more cautiously.
Alex Gladstein, chief strategy officer at the Human Rights Foundation and an advocate for Bitcoin adoption, said, “When politicians say they are ‘crypto-friendly,’ I am very skeptical. I will be careful,” he said. “This is typically code for controlling, censoring, restricting and regulating the use of Bitcoin and cryptocurrencies.”
As Treasury Secretary, Sunak announced plans this spring to make the UK a global cryptocurrency hub. Commission NFT From the Royal Mint “as a symbol of the forward-looking approach Britain is determined to take”.
He has since resigned from Boris Johnson’s cabinet, losing the leadership race to Liz Truss, but his surprise comeback has brought him back on the agenda for digital assets.
Sunak’s ambitions could help shape the global regulatory environment.
After Brexit, the UK found itself competing rather than operating within the European Union. Proposed rule About the lot of crypto activity earlier this month. Prime Minister Sunak has drafted legislation that is still pending to bring regulatory clarity and flexibility to the UK sector.
Paris, one of the continent’s top cryptocurrency hubs, could be the first to feel the heat from the industry-friendly shift across the English Channel. But his move could ultimately put pressure on the U.S. to take a more lenient approach, industry watchers said.
But first, Sunak must stay in the office long enough to complete his agenda. The financial turmoil caused by Truth’s budget plans collapses her government in record time, leaving his remaining political future in doubt until Sunak calms it down.
Charlie Cooper, manager director of R3, which has offices in New York and London and provides blockchain software to regulated financial institutions, said that given the more pressing issues facing the UK, the new crypto regulation said he did not take the passage of
“Is this still on your priority list for rishi snacks?” Cooper asked. “He has bigger fish to fry.”
snack establishment orientation, On the other hand, it pits him against many of the libertarian-leaning iconoclasts and, more recently, right-wing populists who flock to cryptocurrencies as a tool to disrupt the financial status quo.
He has expressed interest in, and has collaborated with, central bank digital currencies G7 financial authorities This is opposed by many libertarian crypto supporters, citing concerns such as financial oversight.
“A wolf in sheep’s clothing is someone who says ‘crypto’ and runs around and talks about CBDC. on Twitter“I’d argue that it’s potentially more dangerous than the ignorant.”
When you think you’re safe from tax season: POLITICO’s Bernie Becker reports. in today’s weekly tax new newsletter Tax filing requirements Cryptocurrency brokers such as Binance and Coinbase are already causing headaches, even though they won’t take effect until 2024.
Fundamental Issue: Starting next year, crypto brokers will have to track transactions that occur on their platforms and report them to the IRS. The industry expects a delay in enforcement.
As Barney writes, “A ministry official told Weekly Tax that regulation is a priority and that the Treasury Department will release draft regulations and seek public comment before the regulations are finalized.” But industry watchers are baffled as to why it took so long, given both the Treasury Department and the IRS were working on encryption rules. before Infrastructure bill passed.
Both established companies like Deloitte and crypto-focused startups like TaxBit have provided guidance to tax-paying crypto holders of all stripes as they try to navigate the nascent morass of regulation. rice field.in fact they partnership But whether regulators and industry are ready, the effort will soon be subject to legal demands. — Derek Robertson
so-called “age of”unauthorized innovationbig tech is over, said one of Washington’s most aggressive opponents.
The concept of antitrust FTC Chairman Lina Kern told a Utah audience on Friday as POLITICO’s Josh Sisco told a Utah audience that regulators “really made mistakes on the side of letting go because they dissolve as soon as a company gains market power.” should be guilty,” he said. Report for Pro Subscriber.
Khan is currently in the middle of a high-profile test case, with her agency suing Meta over its acquisition of the virtual reality training app company. It says the FTC is intervening prematurely in an industry too young for serious antitrust concerns. Khan of course objected, and as Josh reported, to “prevent markets from tilting and companies locking in market power in a way that could make competition much more difficult.” told the audience that early action was needed.
Khan’s remarks were a sharp reminder of the philosophical conflicts that could define this decade of innovation and regulation, regardless of the electoral environment. The FTC chairman is elected by the president, but each commissioner is elected for his seven-year term. — Derek Robertson
Stay in touch with the entire team: Ben Schlekinger ([email protected]); Derek Robertson ([email protected]); Steve Heuser ([email protected]); When Benton Ives ([email protected]).follow us @Digital Future on Twitter.
Ben Schreckinger is responsible for technical, financial and political affairs at POLITICO. He is a cryptocurrency investor.