Former U.S. Treasury Secretary, who once called Bitcoin "a national security issue," changes his view: It's completely fine for the public to buy Bitcoin

The long-absent former U.S. Treasury Secretary, Steven Mnuchin, recently gave an interview. Despite previously stating that cryptocurrencies were extensively used for illegal activities and posed a "national security" risk, he seems to have slightly changed his view. He now believes that it is perfectly fine for the public to hold Bitcoin as an investment option.

Cryptocurrencies Should Be Regulated

Steven Mnuchin was asked on CNBC's "Squawk Box" about his current views on Bitcoin. He stated:

I think I've come around on it. People want to buy Bitcoin, it's an alternative asset like gold and so forth. I think it makes sense, but the key is, people have to be careful, there's a lot of speculation, and I think Bitcoin should be regulated in a way that is equivalent to how other financial assets are regulated.

He also emphasized the incredible potential of blockchain technology behind Bitcoin, especially in innovative applications like fintech.

"If people want to buy #bitcoin as a substitute, no different than buying gold or some other asset, it's fine. I don't personally want to have it in my portfolio but if people want to that's perfectly fine," says @stevenmnuchin1 #btc pic.twitter.com/dmyRp3SXtK

— Squawk Box (@SquawkCNBC) July 14, 2021

Previously Linked Bitcoin to National Security

When Facebook attempted to launch its stablecoin project Libra, later renamed Diem, in 2019, former U.S. President Trump issued a series of anti-crypto and anti-Bitcoin tweets, claiming that the value of cryptocurrencies was "highly volatile."

About a week later, Steven Mnuchin responded to Trump's remarks, expressing concerns about cryptocurrencies funding illegal activities and stressing the importance of anti-money laundering policies in the crypto industry. He compared Bitcoin to a "Swiss bank account" and stated that this raised national security concerns:

Cryptocurrencies like Bitcoin are being used to support billions of dollars of illicit activity, such as cybercrime, tax evasion, ransomware, illicit drugs, and human trafficking, and that is indeed a national security issue.

Controversial Proposal

During Mnuchin's tenure, there was an attempt to include non-custodial wallets in anti-money laundering travel rules. This would require exchanges to report any single deposits or withdrawals over $3,000 from non-custodial wallets and verify the name and address of the wallet owner.

This move sparked significant controversy, with Silicon Valley venture capital legend a16z and Coinbase CEO both speaking out against it, describing it as "impractical," "stifling innovation," and "scary regulation."

Unlike Mnuchin, who now operates his private equity firm Liberty Strategic Capital after leaving office and has slightly changed his views on Bitcoin, Trump recently stated in an interview with "Fox Business" that Bitcoin "looks like a scam."