Moe Vela, Former Senior Advisor To Biden, On Crypto Legislation: ‘We See You, We Recognize You, We Understand You Are Here To Stay’
Moe Vela, Former Senior Advisor to Biden: ‘'We See You, We Recognize You, We Understand You Are Here To Stay” On Crypto Legislation
Moe Vela, renowned for his career in regulatory law and public policy, previously held the position of senior advisor to President Biden. Currently, Vela is a senior advisor to an asset-backed cryptocurrency project Unicoin.
In a recent conversation, Vela provided valuable insights into the future of crypto regulation in the United States. He offered an open perspective on various important issues, highlighting both the challenges and opportunities that lie ahead in regulating the cryptocurrency industry.
This interview took place before President Biden withdrew from the 2024 presidential race.
The Inevitability Of Crypto Regulation
With over 30-40 years of experience in the business, Vela firmly believes that regulation is an inevitable aspect that needs to be addressed.
Vela says that a balanced regulatory approach is critical in this scenario and that over-regulation will stifle the very innovation that makes cryptocurrency an exciting industry.
“We need regulation that empowers growth, encourages the growth of the cryptocurrency sector while at the same time the regulation protects investors and consumers and at the very same time regulation that weeds out criminal actors and behavior.”
Policy Development And Collaboration
One of the critical issues is the development of effective regulations. Vela advocates for a collaborative approach between regulators and the crypto industry in shaping a regulatory framework.
“The agency, the SEC, or any other federal agency here in the United States, they better be talking to the industry and the sector they’re trying to regulate. They need to be talking to our colleagues,” he says.
Vela highlights the importance of regulators acquiring a comprehensive understanding of the crypto ecosystem, emphasizing that this can only be achieved through engaging in meaningful discussions with industry experts.
He explains that players in the space should “help them better understand the industry and the sector, help them understand the entire ecosystem of the sector, and help them understand everything about blockchain.”
Taxation Of Digital Currencies
The taxation approach towards digital currencies by the Biden-Harris administration is another topic of interest. Vela sees the advancements in taxation in a positive light, interpreting them as a sign of recognition and legitimacy for the crypto sector: “I think it is a necessary step and I am a glass-half-full kind of human being. I view it as a very positive step for the cryptocurrency sector.” Still, he acknowledges the worries expressed within the crypto community regarding taxation.
“You see, it’s inexperience and naivete to go into this type of business and think that the United States federal government is going to treat you differently. We can’t have it both ways in the cryptocurrency sector. We cannot want to be a digital currency and then not want to be taxed on it as income.”
The Impact Of U.S. Elections On Crypto Regulation
Amid the approaching U.S. elections, many are curious about how the political environment could impact crypto regulation. Vela is optimistic, affirming that, irrespective of the election results, the succeeding administration will have to establish a regulatory framework that recognizes and supports the role of cryptocurrency in the U.S. economy.
“I think that regardless of which candidate wins the election, they are going to be faced with the reality that they have to, you know, better understand, coexist, and create a regulatory environment that is conducive for cryptocurrency’s growth”. Why?
Because “cryptocurrency is here to stay,” he explains.
Global Crypto Community And Self-Regulation
Vela further emphasizes the importance of the global crypto community coming together and forming an influential trade association. Trade associations are powerful organizations when businesses within a specific sector or industry pay dues and fees to organize and speak in a unified voice as a sector. It’s a powerful form of lobbying and influence in Washington DC. “The industry needs to unite and create a powerful base,” he suggests.
By creating a powerful trade association, the sector can proactively influence regulatory environments and demonstrate its ability to self-regulate, which can lead to more favorable outcomes.
When discussing self-regulation, he mentions the implementation of Know Your Customer (KYC) protocols, as a means for the industry to demonstrate to future regulators its capacity to operate responsibly.
“We need to show the sector that avoiding VAT, for example, we don’t stand for that as a sector. We don’t want to circumvent laws. We don’t want to circumvent regulation. We want to comply if the regulations are fair.”
Challenges And Opportunities In Crypto Regulation
As the conversation comes to a close, Vela reiterates and highlights the balance that must be found in regulating the crypto sector by the administration, stating his belief that regulation will likely arrive around the years 2025-2026.
“Let’s start using regulation and government to tell people how they can do something rather than just not why they shouldn’t or they can’t. In other words, let’s create regulations that encourage people to participate in cryptocurrency, but to be able to do it in a safe and predictable and familiar manner.”
Vela concluded by saying that positive regulation has the potential to “empower, educate, and inform,” further promoting innovation and security in the cryptocurrency space for a broader audience in the U.S. and globally.
Don’t miss our exclusive interview with Moe Vela. To hear his insights on crypto legislation and much more, watch the full interview on the CCN’s YouTube channel – if you enjoy the content, please consider subscribing for more insightful discussions.
🎙️CCN interview with Moe Vela, who served as CFO and Senior Advisor for Latino Affairs under Vice President Al Gore in the Clinton Administration and later as Director of Administration for Vice President Joe Biden in the Obama Administration.
Watch now👇https://t.co/B7qB1Cx4k7— CCN (@CCNDotComNews) July 31, 2024
