Cryptocurrency market plummets after Joe Biden's big move
Most major currencies gained significantly as the White House outlined its proposals for bitcoin regulation. However, cryptocurrencies began to fall once more.
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FollowThe long-awaited executive order on cryptocurrencies issued by President Joe Biden has finally arrived. While the directive is the first big move to unite the government around crypto regulation, it isn't exactly the crackdown that some expected from an administration that has spent months warning about imminent supervision. After a brief uptick, the cryptocurrency market has plummeted catastrophically.
Most major currencies gained significantly as the White House outlined its proposals for bitcoin regulation. However, cryptocurrencies began to fall once more. Throughout the day, they continued to trade lower. Bitcoin has dropped 7% in the previous seven days, and ethereum has followed suit. Almost no major currencies have gained ground this week. According to the tracking website CoinMarketCap, the whole market has declined 5.4 percent in the previous week.
The executive order will not affect how the United States views cryptocurrency in the near future, but it will begin the process of developing laws for digital currencies. As part of this endeavour, Biden has directed government agencies to investigate several of the issues that arose as cryptocurrency grew more popular, including as its role in money laundering and terrorist groups.
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Despite the government's plans to investigate some of crypto's most controversial issues — and the numerous unanswered uncertainties about crypto's future in the US — the fact that the White House is giving bitcoin and other cryptocurrencies some meaningful respect is enough for many crypto enthusiasts to rejoice.
Biden's executive order focuses on revising US financial regulations to handle bitcoin, especially by asking federal agencies to examine cryptocurrency and suggest new rules to govern it. The Treasury Department will develop strategies to safeguard investors and consumers from the financial risks associated with cryptocurrency, which may be more volatile than other forms of assets.
The Financial Stability Oversight Council, a federal group that examines the US financial system, will assess the threat that cryptocurrency represents to the entire economy.
The decree also instructs the government to foster technical advancements that will stimulate the usage of crypto and digital assets while maintaining privacy and security. Biden even pushed the government to keep exploring a plan to develop its own digital money.
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