For some time now, there has been a lot of unrest within the crypto community about possible steps by the US government to take control of the world of cryptocurrencies. New laws were drafted and government agencies speak up regularly negative about the crypto ecosystem.
Joe Biden
This time makes Bloomberg announced that President Joe Biden may have plans to force government agencies to look into possible regulatory measures of the crypto markets through an Executive Order.
Such an order from the president is unique, because it does not require approval from the US Congress. The president therefore enjoys great power to push his agenda to some extent.
A possible order from Biden does not immediately mean that it is over with crypto in the United States or elsewhere in the world. Rumors have it that Joe Biden will only use his executive order to get government agencies to prepare reports on how they might regulate the crypto industry.
Next, the plan would be to seek appropriate regulation of the crypto industry in the country in a unified manner. Since the United States obviously has a huge financial influence on the world, such measures will have global effects.
US lawmakers have long been concerned about the rapid advance that cryptocurrencies and create blockchain technology. Mostly stablecoins are not well received by financial authorities there.
Consequences of regulation?
It is of course not yet possible to say what the consequences of far-reaching regulation for the crypto markets will be. On the one hand, investors are hesitant, as regulation has the potential to negate many of the benefits of crypto.
On the other hand, there are investors who are not particularly concerned about the idea of US crypto regulation. Michael SaylorFor example, CEO of Microstrategy, indicates that he believes there is a good chance that regulation can lead to a certain improvement in the safety of the ecosystem.
This in turn can have the effect of reassuring investors who still have major doubts about a possible crypto investment. Of course, conclusions about the consequences can only be drawn when push comes to shove.
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