Crypto-skeptic Saule Omarova may head OSS in Joe Biden’s government

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Saule Omarova, known for her harsh criticism of cryptocurrencies, has been selected as the candidate for the post of Director of the Department of Foreign Exchange Control under the US Treasury.

The US government has scrapped previous candidacies due to disagreements within the Democratic Party and is now considering Kazakh-born Cornell University banking law professor Saule Omarova as head of the Treasury’s Office of Foreign Exchange Control (OSS).

The likely head of the OSS, Saule Omarova, believes that the rapid growth of cryptocurrencies “benefits a largely dysfunctional financial system that already exists.” She claims that cryptocurrencies threaten to destabilize the economy and are vulnerable to abuse by private companies to the detriment of public interests.

In her research, Omarova points out that cryptocurrency transactions can enable banks to conduct more financial transactions without the control of the Federal Reserve System and other financial regulators. OSS has a priority in tracking the activities of such major banks as JPMorgan Chase, Bank of America and Citigroup.

OSS’s control over the financial activities of the largest banks is likely to increase with the arrival of Saule Omarova. This will negatively impact their cryptocurrency initiatives. The withdrawal of such institutions from the crypto market will have serious consequences for the development of the industry.

  • Recall that JPMorgan Chase, despite criticism of bitcoin, is going to release its own stablecoins.

  • The oldest bank in the United States, Bank of America, allowed its clients to trade bitcoin futures on the Chicago Mercantile Exchange (CME). The bank’s experts believe that El Salvador will benefit from the legalization of bitcoin as a means of payment. The bank has also joined the Paxos Settlement Service, a blockchain-based securities settlement platform.

  • Citigroup is going to create a department to work with cryptocurrencies.

The suspension or even abandonment of these initiatives by financial giants can significantly slow down the development of the cryptocurrency market.

As a result, even more institutions may fall under the control of the OSS. The outflow of large capital from the cryptocurrency market is not ruled out with the strengthening of its regulation by the US government.

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