Biden administration refines regulations on cryptocurrencies
The Bitcoin (BTC) crash and the wider collapse of the crypto markets came at a bad time. Anti-crypto lawmakers are rubbing their hands together with delight as they couldn’t have asked for a better opportunity to legitimise their anti-cryptocurrency legislation.
Biden and Yellen are planning a surprise
Bitcoin is not out of the woods: Elon Musk and China have been bad-mouthing it for days, and the Biden administration is reportedly preparing another blow.
Insiders told the Washington Post that White House officials are looking into the possible use of digital assets, like Bitcoin, to fund terrorist activities.
They are also looking into how retail investors can be protected from extreme fluctuations in cryptocurrencies.
The US Treasury issued a new proposal requiring cryptocurrency holders to report all transactions over $10,000 to the US tax authorities.
This proposal is also one of the factors behind the turmoil in the wider crypto markets.
The Biden administration plans to double the size of the US IRS over the next decade. Investors are concerned the US is rapidly losing its competitiveness on issues related to taxation and digital asset markets.
A drop in the ocean for now, a tidal wave in the near future
According to the Washington Post, federal lawmakers do not currently see the high volatility of cryptocurrencies as a threat to the overall stability of financial markets. However, according to the newspaper’s unnamed source, they are “aware there are all sorts of risks in the abstract and things to watch out for”.
At their peak the valuation of the crypto markets stood at over $2.5 trillion. While this amount seems large, it is a drop in the ocean compared to the entire traditional financial system. The growth of cryptocurrencies is a double-edged sword: it is healthy for the industry, but it is increasingly drawing the government’s attention to the crypto world.
Who is more dangerous for the crypto sphere, Donald Trump or Joe Biden? The current president’s seemingly calm nature could contrast with possible strong measures against cryptocurrencies. Will the US administration really be able to chain down Bitcoin and all its juniors? You might wonder if Elon Musk is a special agent for the dollar: he has tried to hand Bitcoin to the greenback’s fierce supporters on a silver platter.
100% pure millennial, I stumbled across the cauldron of crypto and am now involved 24/7. My favourite quotes come from Sun Tzu’s ‘Art of War’ – “In the midst of chaos, there is also opportunity.”