In an interesting move, the American administration, led by President Trump, announced a new cryptocurrency task force. This move was made via executive order directly from the President. The White House has been growing increasingly concerned with the rise in digital currency and cyber fraud, especially in the first half of 2018. Most of this fraud has been committed by hackers and fraudulent ICO organizations. This force is also going to be used to investigate and hopefully reduce the amount of bureaucracy in the market, with the goal of stabilizing it.
Who is Going to Be Involved?
This task force is to be chaired by Rod Rosenstein, currently the deputy attorney general. Additionally, Christopher Wray, currently the FBI director, is also to sit on the committee. In addition to these individuals, there are quite a few organizations that are to be involved in this task force. They include the Justice Department (DOJ), the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Consumer Financial Protection Bureau (CFPB). While all of these organizations have shared responsibility, only the SEC and CTFC are tasked with implanting recommended policies and conducting meaningful research into the topic.
This task force, called the Task Force on Market Integrity and Consumer Fraud, has quite a lot of power, including being able to call officials of any government agency at any level to meetings. Sessions is also expected to make recommendations directly to Trump about legislation that could be used to increase security, promote cooperation between the agencies involved in the task force, and make policy changes.
What is the Task Force Trying to Achieve?
The real emphasis of this task force is to reduce mass fraud seen in the cryptocurrency world, with a special focus on exit and Ponzi schemes. It is meant to fulfill the recommendations provided by Attorney General Jeff Sessions on financial fraud in every sector of the market, including cryptocurrency.
It appears that the goal of the force is to bring serial fraudster to justice while also implementing policies meant to protect cryptocurrency users and investors. Those involved, including Deputy Attorney General, Rod Rosenstein, have found evidence of fraud in every aspect of this financial market, as well as the healthcare industry, and elsewhere.
Individuals involved in the task force want to bring in banks and banking leaders as they investigate this underground market and develop a cryptocurrency strategy. This has led to some resistance on the part of those in the cryptocurrency community, many of whom were drawn to it because it is an alternative to banks.
Pros and Cons of the Task Force to the Cryptocurrency Market
There are pros and cons of this decision, with many of them influenced by political party affiliation. For example, people on both side of the political aisle see this is as move that could potential stabilize a volatile market, reduce the amount of fraud, and protect consumers across the globe, not just in America. However, there are fears that the task force has a shadow goal: to overhaul and potentially curb the powers of the CFTB, which many Republicans find to be the epitome of government overreach. On the other hand, there are some Republicans who are concerned about government overreach into a market it does not fully understand.
It isn’t clear what the true scope and reach of this task force may be, which cryptocurrencies it is going to investigate, and what the impact is going to be on users and investors of digital currencies. For the time being, there is likely going to be little to no repercussions. If, however, the task force uncovers signs of fraud or starts arresting perpetrator, you can expect to see changes throughout the market. While there is little risk of having the pseudo-anonymous aspect of these currencies removed, you may find it harder to open wallets or use exchanges based in America in a truly anonymous way. This could be a great thing, as it means that the exchange or wallet provider is reputable and compliant with legislation. As a result, you can confidently leave your money there or use the exchange without fear.
While it is early, there is still plenty of speculation about this new, and unexpected, task force. It is too soon to estimate the outcome of these investigations with any accuracy, but experts do recommend keeping a close eye on the market, and another on the news to stay on top of any recommended changes.