How Biden’s Executive Order Impacts The Crypto Industry

A new executive order signed by US Vice President Joe Biden has created significant uncertainty regarding bitcoin, cryptocurrency, and blockchain regulation. The executive order unveiled by Biden could be of significance to the data protection regulation coming from Europe – something that could dramatically influence the future of all cryptocurrencies.

What Does The Ordinary Person Need To Know About Cryptocurrency And Why It Is Gaining Popularity? 

Cryptocurrency is a form of digital currency that allows users to make secure and decentralized transactions directly peer-to-peer without a central authority. Bitcoin, the most popular cryptocurrency with a market capitalization of $1 trillion, is the most well-known type of digital money. Other types include Litecoin, Ethereum, and Ripple. It gained popularity because it was outside the control of governments and corporations, which made it attractive to people who wanted to protect their money and privacy.

However, in recent years there has been growing concern over how hackers and criminals use cryptocurrencies to launder money or conduct illegal activities like drugs and weapons trafficking. In order to address these issues, President Biden recently signed an executive order directing the Treasury Department to develop regulations for financial institutions that use cryptocurrencies such as Bitcoin or Ethereum in order to prevent them from being used for illicit purposes such as money laundering or terrorism financing.

President Biden has signed an executive order to investigate the risks and advantages of digital assets, like Bitcoin and Ether. There are tons of risks associated with crypto, including fraud and tax evasion. However, there are also lots of benefits for both consumers and investors. Experts believe Biden is taking a more moderate approach than his predecessor on crypto regulation.

Takeaways From The Executive 

The executive directive asks for steps to reduce the dangers associated with the bitcoin industry. It is well established from the events of the 2007-2009 financial crisis that new financial assets can create severe market disruptions and economic downturns unless appropriate rules are in place and operating. In certain ways, the executive order recognizes the significance of cryptocurrency markets and the accompanying business.

Rules And Regulations That Regulate Cryptocurrency 

Cryptocurrency has been around for a decade now, but there has never been a regulatory structure in place. Having regulations means there’s less risk involved when investing your money into cryptocurrency. It also makes investing in cryptocurrency safer and less risky, which means more people might want to invest their money into this type of currency.

Our Final Thoughts 

 In the coming months, we can expect that the White House and lawmakers on Capitol Hill will continue to discuss cryptocurrencies at length as they develop policies designed to facilitate their use while simultaneously attempting to mitigate their perceived risks. As a result, some level of additional federal regulation is almost certainly coming sooner rather than later. 

While this news seems like bad news on the surface, we shouldn’t be overly concerned: The concerns outlined in this edict have been echoed by people on both sides of the aisle for months, and these measures are less about policing cryptocurrency than about bringing much-needed transparency to the space. In fact, there are many ways that Biden’s order and other similar announcements can help stoke development in blockchain technology, which would be a welcome addition all around.