The avalanche of regulations that are coming in the cryptocurrency market is an additional element of uncertainty for assets that have suffered greatly in the first month of the year. Specifically, the experts point to the steps that the US can take in one or several legal corpus to tie this industry short. And any signal that indicates which path the world’s leading power will take is being scrutinized with special attention, at a time when 40% of operations take place during Wall Street hours. It is known that it is imminent and little by little the details are being known.
The last hour on this front is that the White House will not take action on the matter directly, as previously speculated. Instead, he will issue an executive order, most likely in February, that will task federal agencies with regulating digital assets like bitcoin and other cryptocurrencies as a matter of national security, Barron’s explains, citing a source “familiar with the White House plan.
The Biden memo would assign some government entities to study cryptocurrencies, stablecoins, and non-fungible tokens (NFTs) with the goal of developing a workable regulatory framework. Related government agencies will have three to six months to submit proposals. The aforementioned order could give rise to other measures if the president of the United States, Joe Biden, considers it necessary.
Experts hope that this information will keep the roller coaster feeling in crypto currencies. They predict an impact in the short term, which will be more or less negative, while in the long term it will end up being bullish because “it could give assets a seal of approval and it could reduce competition in a market where a new ‘currency’ overnight,” RaboBank analysts explain.
“Both are logical. However, so is the scrutiny of everything crypto does and the levying of fees on every transfer, which means it won’t be able to operate on the scale needed to emerge as an everyday rival to the currency. state-backed fiduciary and its most efficient and tax-free payment systems,” these experts point out.
