Mick Mulvaney is set to be the new chief of staff at the White House following the scheduled leave of John F. Kelly starting 2019. In the past, the new head has been quoted by major publications like the Washington Post supporting cryptocurrencies.
He has specifically praised the decentralized nature of Bitcoin according to a speech covered by Mother Jones back in 2016.
At the time he criticized the Federal Reserve Bank claiming that it devalued the dollar. Adding that no single entity could do the same in the case of a cryptocurrency like Bitcoin which he considered not manipulatable by any government.
Research Conducted By The Central Bank Of Finland Also Found Bitcoin Was Hard To Regulate
His views seem to agree with research that was conducted by the central bank of Finland back in September of 2017. The study described the inefficiencies of trying to regulate blockchain platforms concluding that Bitcoin cannot be regulated since the platform operated under strict rules that were implemented by its community and sustained by miners and developers.
The report read: “Bitcoin is not regulated. It cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts. Bitcoin’s design as an economic system is revolutionary and therefore would merit an economist’s attention and scrutiny even if it had not been functional. Its apparent functionality and usefulness should further encourage economists to study this marvelous structure.”
What Implications Could The Appointment of Mulvaney Have?
What’s for sure is that having a pro-Bitcoin official in the white house will not hurt the prospects of the digital currency.
However, being realistic, the neutral stance of the new chief is not expected to have much impact on the short-term goals of commissions that are trying to fight the new asset classes, i.e. the SEC and the Commodities and Futures Trading Commission (CFTC).
Already the SEC has stated that it doesn’t see Bitcoin as a security under the current laws essentially approving the infrastructure that surrounds it.