A new era for crypto
US President Joe Biden officially announced a new executive order today that outlines how the federal government will approach crypto regulation. This move comes after months of anticipation when the rumor first began circulating in the fall. Strangely, the government accidentally leaked the news last night and the market gained as a result.
Prior to today, there has been little to no regulatory clarity on crypto in the US.
Once signed, US government entities other than SEC like the department of the treasury, will likely begin to scrutinize crypto a reasonable amount more. The executive order described six key priorities that the federal government will focus on: consumer and investor protection, financial stability, illicit finance, U.S. leadership in the global financial system.
The US is exploring a CBDC
The order also encouraged the federal government to start conducting serious research for a digital dollar. For as long as the US has been around, we've always been in competition with other big countries like China. The Chinese Communist Party recently released a digital yuan that has already amassed over 260 million users since January. The US government has taken notice, it seems.
Many argue that CBDCs are immoral and potentially dangerous. A digital copy of the fiat money we're all trying to move away from does not sound very safe. Centralization is an extremely dangerous concept; especially in blockchain. After understanding the history of fiat money and all its failures, decentralization was undeniably Satoshi Nakamoto's top goal.
Bitcoin and altcoins rise on the news
Despite what many people think, regulation will only be good for crypto prices. The one thing stopping most large entities from investing in crypto is the lack of regulatory clarity. If the government officially creates a regulatory framework for crypto, the fears of most institutional investors will likely evaporate.
In addition, Treasury secretary Janet Yellen appears to be becoming more friendly with the crypto industry than previously. She said the government would "support responsible innovation."
On this news, Bitcoin and other alts jumped over 20%. They have since cooled down a bit, but are still drastically up for the week.