Coalition Pledges to Fast-Track Crypto Regulation, Echoing Trump’s Deregulatory Zeal

The Australian Coalition Party is taking a leaf out of Donald Trump’s book, as the election race heats up.

Peter Dutton, leader of the Liberal–National political party, has been urged to ‘model’ himself on the US President, although this is something Dutton has denied.

Even so, the Coalition has its eyes set on at least one strategy from the DJT playbook — improving regulatory clarity for crypto.

Related: Money Laundering Crackdown: AUSTRAC Puts 50 Firms, Including Crypto Exchanges, On Notice

Crypto Reform Not a Priority for Current Government, Coalition Says

Australia under the Albanese Government has been fairly receptive to digital asset reform. 

Late last year, the Labour Party announced they were ‘working with industry and regulators to develop a fit for purpose digital asset regulatory regime’. In particular, the Government is interested in utilising and adding policies around stablecoins.

Harnessing data and the digital economy is part of our five pillar productivity agenda and we see digital assets playing a big role here.

Hon. Stephen Jones MP, Assistant Treasurer

However, from the perspective of the Coalition, this is a case of too little, too late. 

According to the LNP’s Financial Services Minister, Luke Howarth, the Albanese Government hasn’t made crypto regulation enough of a priority.

Australians are increasingly investing in crypto and deserve the protections afforded by fit-for-purpose regulation. This is not a priority for Albanese’s minister and it has been left too late.

Luke Howarth, Shadow Financial Services Minister

ASIC ‘Regulation by Enforcement’ Could Damage Industry

In a statement made to InvestorDaily, Howarth followed up these comments by taking aim at the Australian Securities and Investment Commission, accusing them of following the Gary Gensler-led SEC’s ‘regulation by enforcement approach’.

[Digital asset] operations are likely to move offshore if ASAIC starts regulation by enforcement and litigation under existing laws which don’t fit neatly…Australian blockchain businesses with transformative potential will likely consolidate or leave.

Luke Howarth, Shadow Financial Services Minister

A Dutton Government would support introducing clarity for stablecoins and other crypto assets to address the mismatch between current financial regulations and the evolving digital currency industry.

Despite the criticism, ASIC has become more involved in the blockchain space of late. The Australian agency released a paper in December last year proposing several updates to current legislation ‘to provide greater clarity about the current law’.