The highest forex regulator expects readability on Bitcoin within the coming weeks
One of the leading financial regulators in the United States said Thursday that new regulations for Bitcoin and other cryptocurrencies were coming soon, but it played down concerns that the new rules would be disruptive.
Brian Brooks, the current controller of the currency, told CNBC's Melissa Lee in "Squawk Box" that she should expect "clarity" on cryptocurrency in the next six to eight weeks, but said "nobody is going to ban Bitcoin".
"We're very focused on getting this right. We're very focused on not killing this," Brooks said. "And it is just as important that we develop the networks behind Bitcoin and other cryptos as that we prevent money laundering and terrorist financing."
Concerns about possible regulation were heightened last month when Coinbase CEO Brian Armstrong said on Twitter that he had heard rumors that the Treasury Department was working to pass new crypto rules before President Donald Trump's term ends in January.
"That would be bad for America as it would force US consumers to use foreign unregulated crypto companies to gain access to these services. And in the long term, I believe that would jeopardize America's status as a financial center," said Armstrong.
"I think you'll see a lot of good news for crypto before the term ends," Brooks said.
The price of bItcoin has been a rift in the past few weeks, hitting its first record high since 2017 on Monday. The cryptocurrency continued to be volatile but was increasingly embraced by major financial companies and high profile investors.
PayPal recently implemented a system that allows users to buy and sell cryptocurrencies on their platform. Hedge fund managers Stanley Druckermiller and Paul Tudor Jones have both said they are bullish on Bitcoin.
Brooks said the new regulations would help accelerate the adoption of crypto by major financial players.
"It may have been a bubble two years ago, but with more clarity, institutions that see this as a real thing are going to take over on a large scale what they have already started," said Brooks.