President Joe Biden’s order to drive US on the crypto wave

Andrew Bragg, who led a Senate inquiry into crypto, says Australia’s ambassador to the US, Arthur Sinodinos, has arranged meetings with US senators and congressional members to discuss Australia’s approach to crypto.

Thanks to Bragg’s committee, the federal government will soon begin a consultation on the establishment of a licensing framework for digital currency exchanges and a regulatory regime for custody of crypto assets.

Henrik Andersson, chief investment officer at specialist crypto fund manager Apollo Capital, says the US move is a “watershed moment in crypto because it brings the conversation of crypto to a national level in the US”.

Andersson says Australia has been a world leader in crypto-asset innovation and this was shown by the fact that the combined market capitalisation of initial coin offerings was about $10 billion.

Apollo Capital, which has $200 million in crypto assets under management, will soon set up an incubator in Melbourne to fund web3 entrepreneurs developing crypto regulatory applications.

Biden’s directive will likely see Australia and the US working closer together to stop illicit use of crypto.

The President wants US agencies “to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks”.

Disclosure: The author’s self-managed super fund owns shares in crypto miners Iris Energy and Mawson Infrastructure.