Bitcoin’s fears are regulation and the President of the US: the report

Bitcoin is afraid of compromise, Mr. Biden: report

Bitcoin likes to be linked to the mainstream. But now that the U.S. president says he wants to get serious, his cryptocurrency may be cold.

Last Wednesday, when Joe Biden ordered officials to prepare reports on the future financial service of cryptocurrency, bitcoin did as much as 9 percent and 8 percent ether, as many cryptocurrency enthusiasts had a potential milestone in mainstream acceptance.

“The real importance of this is that the President of the United States is talking about crypto,” said Jack McDonald, CEO of Standard Custody, a company that manages solutions for the digital assets of institutional investors.

However, cryptocurrencies are complicated.

While bitcoin danced above $ 42,500 after the news, it has since abandoned those gains and is now back at around $ 38,000. Ether has also dropped above $ 2,500.

That seems like a silent reaction from the market to the White House’s first formal statement about cryptocurrency – even if who can really understand bitcoin, still licking its wounds as a result of China’s rejection and the uneasiness it is losing its identity.

Regulation can be a double-edged sword.

Some industry watchers see a bullish signal on bitcoin, saying the president’s announcement could herald U.S. regulations on cryptocurrencies that will make more institutional money like pension funds and insurance companies.

“Biden’s executive order could signal the end of the cryptic savage west we know,” said Edmund Kulakowski, Fenergo’s senior financial crime advisor at Fenergo London’s regulatory software firm.

However, this may not be so good news for crypto players who grow up in the wild.

“The hedge funds that execute arbitrage and quantitative strategies typically shine in volatile and unstructured markets,” said Ganesh Iyer, chief marketing and strategy officer for New York-based IPC technology company.

We will know overtime “how and when this market will be reached. Up to this point, it is now possible for hedge funds to use ultra-low latency networks to get the most out of volatile, lightweight and liquid crypto markets.”

Who is the Sheriff?

There is also little certainty about America’s regulatory intentions, with Biden having spent six months instructing federal agencies.

On the one hand, it is not clear who will be the sheriff of cryptography, or whether cryptography should be treated as security or merchandise.

The Securities and Exchange Commission (SEC), which oversees listed stocks and therefore tokens that are considered securities, and the Commodity Futures Trading Commission (CFTC), which oversees the commodity and derivatives markets, are among those who must contribute. into reports.

“The specifications related to the SEC, CFTC and other financial regulators are lightweight,” said Jerald David, president of Arca Labs, the innovation base for Los Angeles-based digital asset manager Arca.

Shane Rodgers, a former investment banker and CEO of PDX Coin, a crypto-to-fiat payments app and usability coin, said he was waiting to see how the regulation could be shaped, especially when it comes to defining the role of the SEC.

Until it becomes more visible, he added, “the government may forget about innovation in the US cryptographic space because I, for example, will not hire people or spend large sums of money on R&D in this country.”

American Crypto Power

It seems certain that no matter how this is played out, US action will have a major impact on the global cryptography industry.

America, the epicenter of traditional finance, is fast becoming a cryptocurrency; According to PwC, 43% of the world’s crypto-hedge fund managers now live there, and the United States is also a center for bitcoin mining, following China’s crackdown on that part of the industry last year.

McDonald’s of Standard Custody described Biden’s order as a “symbolic document.”

“It wasn’t said that it’s a scam or that bad actors are doing bad things,” he added. “On the contrary, it is recognized that digital assets have a place in the future, that this industry needs a thoughtful approach to regulation.”

Source link


Welcome to India's Largest news platform, I assure you that we daily update on Global news which helps you to grow your knowledge.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button