Share this article
Trump Official Argues for 'Sweet Spot' in Crypto Regulation
The U.S. government needs to develop reasonable regulations around the nascent cryptocurrency space, said OMB director Mick Mulvaney.
Updated Dec 10, 2022, 8:35 p.m. Published Jun 20, 2018, 8:15 p.m.
Make us preferred on Google
The U.S. government needs to find the "sweet spot" in its oversight of the cryptocurrency ecosystem, Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, said on Wednesday.
Speaking at the Future of Fintech conference hosted by research and analysis firm CB Insights, Mulvaney, who also heads the Office of Management and Budget, touted his pro-bitcoin credentials, noting that he is fiscally conservative and "was one of the founding members of the bitcoin caucus and blockchain caucus."
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Sympathies aside, he argued that regulation is important to protect investors – but the government should not discourage potential investors or developers from entering the market through burdensome laws or regulations.
Mulvaney explained:
"We knew at an early point in bitcoin that as with any developing financial technology we needed to find that sweet spot … if Mt. Gox became a regular occurrence it dramatically undermines confidence in the markets and prevents innovation. And if we over-regulate and discourage people from entering the marketplace, that has bad consequences too."
In other words, Mulvaney said, "we're looking for that Goldilocks [path] in the middle."
He explained the concerns that might arise with a lack of investor protection, saying: "It's a new and innovative technology, it's a nonbanking system, it's whatever. If people still can't get access to their own money, that's a problem. So the law's functioning correctly there."
What Mulvaney is trying to accomplish now, he argued, is ensuring that the application of an existing law doesn't lead to unintended consequences.
"If for some reason we're looking at you and the only way we can look at you is through the lens of the bricks and mortar financial institution, and because we do that it has this perverse or absurd result, that's what we're trying to identify and to prevent," he said.
Mick Mulvaneyhttps://www.cbinsights.com/research-future-of-fintech-livestream/ image via CB Insights
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here's what bitcoin bulls are saying as price remains stuck during global rally
It's about a lot more than "zooming out." Supply overhangs and investor "muscle memory" regarding gold help explain bitcoin's poor absolute and relative performance.
What to know:
- Bitcoin has failed so far to act as an inflation hedge or safe-haven asset, lagging badly behind gold, which has surged amid high inflation, wars, and interest rate uncertainty.
- Crypto advocates argue that bitcoin’s weakness reflects a temporary supply overhang, investor “muscle memory” favoring familiar precious metals and its correlation with risk assets, rather than a collapse in long-term demand.
- Many bitcoin proponents still see BTC as a superior long-term store of value and “digital gold,” predicting that, once traditional hard assets are overbought, capital will rotate into bitcoin, allowing it to “catch up” to gold.
Top Stories
