Newly-Appointed U.S. Chief of Staff Praised Bitcoin and Blockchain Technology

Despite its decentralized status, Bitcoin’s popularity and price have often been influenced by politics, official statements and regulatory measures.  Recent reports indicate that the cryptocurrency now has another supporter, occupying an important position in the United States government.

As such, following the leave of John Kelly, Donald Trump has announced that Mick Mulvaney will become the White House’s new Chief of Staff starting from early 2019.  With this in mind, Mulvaney has openly talked about bitcoin and blockchain in the past, and has positioned himself as a supporter of the technology through his work.    

To put things better into perspective, back in 2016, Mulvaney stated that the Federal Reserve is responsible for devaluating the dollar, and that bitcoin is special, since ‘it cannot be manipulated by any government’.

When it comes down to his support for blockchain technology, Mulvaney was involved in the creation of the Congressional Blockchain Caucus, which is an organization responsible with the development of blockchain-specific legal instruments, alongside the promotion of the technology within the U.S. Congress. The new Chief of Staff also held a speech meant to further encourage Congress members to join the Caucus, where he noted that: “Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy, and the delivery of government services.”

Some people believe that President Trump is slowly preparing for crypto and blockchain mass-adoption, granted that he named Hester Peirce and Elad Roisman as SEC members, both of whom the media considers pro-bitcoin.

This is great news for the digital currency industry, since the U.S. legal framework surrounding cryptocurrencies and blockchain technology is quite confusing. Based on this, correctly reporting crypto-based tax with the IRS is very difficult, whereas industry-related companies often face trouble when attempting to get their licenses approved. Additionally, the Securities and Exchange Commission, which is one of the country’s most important financial regulators, has often refused to support crypto-related initiatives, such as the Bitcoin ETF.

Appointing more bitcoin-friendly officials to important government position, may in fact, encourage regulators to look at digital currencies in a new light, while also encouraging fintech innovation. It will likely take a while before the U.S. becomes more supportive of bitcoin and blockchain, yet with crypto-friendly officials, anything is possible.