Blockchain Strategies Needed as U.S. Clamps Down on Crypto
Two developments unfolding in Washington this spring should have corporate finance and tax departments brushing up on their blockchain. First, Gary Gensler was confirmed as the chair of the Securities and Exchange Commission (SEC). Then, the Biden administration announced a new tax enforcement plan that would double the number of Internal Revenue Service employees over the next 10 years and require detailed reporting on cryptocurrency holdings.
Put them together, and you get the recipe for the world’s most crypto-aware regulatory infrastructure, one that is sure to break new ground on both the kinds of assets it tracks and the methods it uses.
The significance of the Gensler appointment was not as obvious as the tax enforcement plan, but the move signals a much more active role for the SEC when it comes to its handling of digital assets.
Formerly chair of the Commodity Futures Trading Commission (CFTC), where he overhauled derivatives markets following the financial crisis, Gensler spent the last few years teaching courses on blockchain at MIT and has been quoted calling the technology a “change catalyst.” He joins SEC commissioner Hester Peirce, who has already earned the nickname “crypto mom” for vocal support of digital assets.