Cryptocurrencies in the US 2021 budget draft

We are just starting 2020, but the US is already planning fiscal year 2021. And these plans are so advanced that a preliminary budget has even been published. There is room for a few ideas regarding the approach to cryptocurrencies. They are in line with the views of President Donald Trump, who - to put it mildly - is not a fan of digital assets.

In Poland, we are used to the fact that the first information on budget assumptions is presented in the fall. Although "presented" is not a very appropriate word - with us it starts with more or less controlled leaks that appear in the public space in the form of flashy media headlines. This is not the case in the US, however, not only because of a more developed political culture, but also because Americans start their fiscal year in October. So we have already met US budget plans for 2021.

Secret Service will deal with cryptocurrencies

A serious approach to cryptocurrencies is evidenced by the involvement in their supervision of one of the most powerful government agencies - the Secret Service. Her rank will also change. Until now, she was subordinate to the Department of Homeland Security, and next year she will be accountable to the Department of the Treasury. This is a clear signal that cryptocurrencies are not only a threat, but also have financial potential.

Until now - in addition to protecting the head of state - the Secret Service has been dealing with prosecuting people for counterfeiting money and financial scandals. Everything was aimed at protecting a strong dollar, and - as you know - Donald Trump believes that cryptocurrencies can threaten the value of the US currency. Although on the same exhaust he also adds that cryptocurrencies have no value and their prices come from the air, but apparently someone managed to persuade him to blow on the cold.

"The technological progress that has taken place in recent decades, such as the emergence of cryptocurrencies or the growing interconnection on the international financial market, has led to the creation of more complex criminal organizations and revealed stronger links between financial and electronic crime and the financing of terrorists and dishonest state entities." - we read in the draft budget and it is undoubtedly the message indicated by the current US president.

A second agency will help and prevent anonymity

The White House emphasizes that cryptocurrencies and related threats should be dealt with by one more government agency - FinCEN (Financial Crimes Enforcement Network). From the point of view of the administration, it is natural, because FinCEN agents deal with the protection of the economy against money laundering and supervise companies from the cryptocurrency industry, mainly cryptocurrency exchanges operating in the USA. One idea is to prevent anonymity by checking even more closely all transactions with an amount greater than $ 3. USD.

Donald Trump: cryptocurrencies are not money

It is worth emphasizing that this is only the first budget proposal and it will take quite a few weeks before we see the final version of the document. In addition, the document was published by the White House, and the budget is adopted by the House of Representatives. So for now, it can be treated as a project and a test of political pressure.

Especially since in the US government with a candle look for a bigger opponent of cryptocurrencies than Donald Trump. Half a year ago, he stopped giving more or less specific suggestions and explicitly stated himself on this issue on Twitter. He wrote, among others that not only is not a fan Bitcoin and other cryptocurrencies, but their value comes from the air, and in addition - in his opinion - they facilitate settlement for drug trafficking, terrorist activities, dirty laundering and other crimes.