Joe Biden and Jane Yellen will crack down
Nouriel Roubini: Joe Biden and Jane Yellen will crack down on crypto ‚criminal cesspool‘
Nouriel „Dr. Doom“ Roubini announces the death of cryptocurrencies again, as XRP recovers 35% and Bitcoin marks new all-time highs
Bitcoin (BTC) critic Nouriel Roubini is convinced Bitcoin Rush that incoming US president Joe Biden will go well beyond Donald Trump in controlling cryptocurrencies.
On 24 December, in a heated debate on Twitter, Roubini called the industry „a cesspool“. The economist is known for both his aversion to crypto and his ability to unintentionally predict market lows.
Roubini to a pro-Bitcoin lawyer: ‚you are deluded‘
Roubini was responding to Jake Chervinsky, a lawyer studying the consequences of recent reports that US regulators are requiring on-chain Anti-Money Laundering and Know-Your-Customer (AML/KYC) identification processes for stablecoin payments.
Chervinsky said the idea currently „has no chance“ of becoming enforceable law. On the contrary, it represents the personal views of Steven Mnuchin, the Trump administration’s treasury secretary who will soon be replaced by Jane Yellen, the choice of incoming President Biden.
„You are deluded,“ retorted a visibly angry Roubini.
„Biden’s team, starting with Yellen who was my boss in the CEA, will crack down on this crypto/shitcoin cesspool of AML-KYC-TFC non-compliant tax evasion far more than Mnuchin. Get a life, you’ve become a cheerleader hired by the crypto industry.“
Bitcoin and altcoin refuse to die this year
This week, sceptics were encouraged by news about the US Securities and Exchange Commission’s (SEC) decision to sue blockchain payments network Ripple. As Ripple is the largest holder of XRP, the cryptocurrency’s price witnessed a 60% plunge following the news.
At the same time, observers pointed out that Bitcoin barely reacted to this legal hurdle. In the long term, however, polls revealed that many remain concerned about the impact of a potential government ban on Bitcoin’s success.
Supporters of cryptocurrency claim that this is impossible. The most effective way for governments to reduce demand for a fully decentralised asset, in their view, is to reintroduce free markets based on a solid monetary standard such as gold, an unlikely eventuality.
„Bitcoin cannot be banned easily,“ Saifedean Ammous, author of „The Bitcoin Standard“, said in 2019:
„If people want to use it, they will find a way. If you’re trying to stop it, you have to undermine the incentive to use it. The best way to do that is to reintroduce the free market into gold-based banking.“
Regardless, Roubini’s continued criticism of Bitcoin and cryptocurrencies may actually be a positive factor. As the data shows, in the past his outbursts have co