Mexico's Crypto Policy Expected to Continue as Claudia Sheinbaum Elected First Female President

2024-06-03 06:46:48

Hassan Shittu

Last updated:

June 3, 2024 10:46 EDT | 2 min read

Mexico's Crypto Policy Expected to Continue as Claudia Sheinbaum Elected First Female President Claudia Sheinbaum, former mayor of Mexico City, has been elected as the first female president of Mexico. She is anticipated to maintain the current administration’s approach to crypto regulation.

This election is expected to continue Mexico’s current crypto policies, as Sheinbaum is a member of the ruling Morena party and aligns with the policies of her predecessor, Andres Manuel Lopez Obrador.

Sheinbaum Expected to Continue Mexico’s Current Crypto Policies

According to multiple reports, including The New York Times, Claudia Sheinbaum, former mayor of Mexico City, has been elected as the first female president of Mexico.

Sheinbaum, a close ally of the outgoing president, Andrés Manuel López Obrador, is anticipated to maintain the current administration’s approach to cryptocurrency regulation. She has closely aligned herself with Obrador’s policies, though crypto was scarcely mentioned in one of Mexico’s most significant elections.

Sheinbaum’s victory also marks a significant milestone for gender equality in Mexico and signals a degree of continuity in policy direction. The current administration is focused on fostering innovation while ensuring robust regulatory frameworks to prevent misuse.

Although the Morena party has not introduced comprehensive legislation for the crypto sector, it has imposed a 20% tax on crypto gains. Additionally, existing policies require cryptocurrency exchanges to comply with global anti-money laundering and terror financing regulations. The party has also shown interest in regulating blockchain technology to enhance its security and eco.

It’s uncertain if recent crypto-related developments in the United States during Mexico’s election campaigns will the Morena party to rethink its cautious approach to crypto policy. As the largest market for remittances from the US, Mexico presents a significant opportunity for crypto usage among its citizens.

The community suggests that Sheinbaum’s presidency will likely continue these balanced crypto policies. It will leverage the benefits of digital currencies and blockchain technology for economic growth while addressing security and financial stability concerns.

Her election has been met with celebration and cautious optimism among crypto enthusiasts and key industry players in Mexico. Many view her leadership as an opportunity to solidify Mexico’s position in the crypto space.

These developments in the US may influence Mexico’s stance on crypto, but for now, the Morena party’s policy appears to remain steady under Sheinbaum’s leadership.

The Ongoing US Shaky Stance

President Joe Biden recently vetoed a resolution to overturn the US Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121, which requires institutions that custody crypto assets to record these holdings as liabilities. Biden argued that reversing the SEC’s guidelines would undermine the agency’s authority over accounting practices. He stated that his administration would not support measures that jeopardize consumer and investor protection.

The veto followed bipartisan efforts in Congress to repeal SAB 121, with the House and Senate voting to nullify the guidelines. The crypto community expressed frustration, viewing the veto as a hindrance to industry growth during a critical time.

House Financial Service Committee Chairman Patrick McHenry has recently urged the Senate to advance the Financial Innovation and Technology for the 21st Century Act (FIT21) before the US elections. This bill, which the House recently approved with bipartisan support, aims to establish a new legal framework for digital assets.

McHenry has been collaborating with Rep. Maxine Waters on a stablecoin regulation bill, indicating progress. He suggested that any new regulation would likely be integrated into a larger legislative package to facilitate passage through the Senate.

Kyle Bligen, director of financial policy at the Chamber of Progress, mentioned that the FIT21 bill would provide greater freedom for crypto companies in the US and clarify regulatory responsibilities between the SEC and CFTC.

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