Joe Biden Scams the Cryptocurrency Market Again! But There’s Something He Doesn’t Know!

The Consumer Financial Protection Bureau (CFPB), which made a controversial move in the final days of President Joe Biden’s administration, has released products such as MetaMask and Phantom. crypto para proposed a rule that could hold wallet developers accountable for fraud or erroneous transactions.

But the proposal is expected to face significant opposition and be scrapped when Donald Trump takes office later this month.

The CFPB announced Friday that it has proposed an interpretive rule aimed at regulating digital asset wallets as financial institutions under the Electronic Funds Transfer Act. If enacted, the rule would give the agency the authority to hold wallet providers accountable for unauthorized or fraudulent transactions.

“When people pay for family expenses using new forms of digital payments, they should be confident that their transactions are not tainted by harmful oversight or errors,” CFPB Director Rohit Chopra said in a statement.

The Bureau, first established to protect consumers after the 2008 financial crisis, has opened the rule to two months of public comment, but many believe the proposal is unlikely to gain traction under the incoming administration.

“This is like holding a hammer manufacturer (who in many cases gives away hammers for free) liable for the misuse of a hammer,” said Joey Krug, a partner at Peter Thiel’s Founders Fund, likening the move to holding a hammer manufacturer liable for misuse.

Many in the crypto industry see this move as part of a broader agenda linked to Senator Elizabeth Warren, a staunch critic of digital assets. Warren, who first proposed the establishment of the CFPB in 2007, is considered one of the harshest opponents of the cryptocurrency industry.

Chopra, a longtime Warren ally, was nominated by President Biden to be CFPB director in 2020. The proposal to rein in crypto wallet providers is seen by some as emblematic of Warren’s influence over the agency.

Despite the turmoil, industry leaders remain skeptical that the rule will last long. A 2020 Supreme Court ruling allows the president to fire the director of the CFPB without cause, and the new Trump administration is expected to take a pro-crypto stance.

Chopra and her proposed rule are likely to be short-lived, as Republicans have historically criticized the CFPB’s existence. The Trump administration has already signaled its intention to support digital assets, a stark contrast to the Biden administration’s more cautious approach to the sector.

*This is not investment advice.