Biden’s power over the financial industry and what is allowed and not allowed to be invested into is nothing new. In fact, back in summer President Joe Biden signed an executive order that bans Americans from investing in Chinese firms with ties to China’s military-industrial complex. This order left 59 total Chinese companies barred from receiving American investment, and the President’s executive order demonstrates the power of the administration. When it comes to cryptocurrency, a regulation of sorts was being discussed as well. We have an update on that regulation, including what it entails.
Biden’s executive order calls for regulation of the crypto industry at large, by calling on federal agencies to take a unified approach to regulation and oversight of digital assets. This order can be further broken down into six areas of focus: Consumer and investor protection, financial stability, Illicit activity, U.S. competitiveness on a global stage, financial inclusion, and Responsible innovation. When it comes to consumer and investor protection and illicit activities, the government is referring to the flurry of hacks and security breaches that have haunted the crypto space. Just last year the government seized $3.6 billion worth of bitcoin-related to the 2016 hack of crypto exchange Bitfinex. Beyond hacks, the government looks to regulate financial risk in volatile crypto markets and the exchanges themselves through the SEC. Lastly, on a more international level, the government plans to focus on maybe developing a CBDC and development of the industry to get ahead of countries like China, while also ensuring the climate effect of crypto can be improved. What do you think about these focuses? And how much will the government really do to affect the future of the industry?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.