The US is Introducing New Crypto Regulations. What should we expect?

Introduction

The role of cryptocurrencies in both our social lives and in political matters is undeniably growing more and more each day. In this regard, the White House has long been under pressure to play a more serious role in setting the rules for digital assets. Sanctions imposed on Russia in the aftermath of the Ukraine invasion, along with worries that Russian businesses and people may use cryptocurrencies to bypass them, have also added to the pressure.

This week, President Joe Biden is expected to sign an executive order on cryptocurrencies outlining the government’s objectives regarding Bitcoin and cryptocurrencies. The executive action is expected to charge federal agencies with evaluating the threats and opportunities that Bitcoin and other cryptocurrencies pose to the United States, according to a report by Bloomberg.

According to Baron, management believes cryptocurrencies have “economic implications for national security.” It is therefore expected that, in addition to the National Security Council of the White House, the State Department, the Treasury Department, the National Economic Council, and the Economic Advisers Council will be involved in regulatory efforts.

Do Cryptocurrency Terms Affect Crypto Prices?

There is little financial control in the crypto world, and this may raise the question of whether cryptocurrency is safe for individual investors.

Usually,, financial regulation helps to protect investors, prevent fraudulent activities in the crypto ecosystem, provide clear guidance for businesses in the crypto economy, and deal with environmental issues related to crypto mining. However, some fear that the regulation could be too restrictive and prevent innovation, so it needs to be properly balanced.

But how crypto prices will be affected is actually up to the approach of the regulation. In the simplest terms, if the legislation supports the creation of innovation, crypto values may rise. However, if it appears to be restrictive, Bitcoin and other cryptos are very likely to lose value.

Last year, Janet Yellen, U.S. Secretary of the Treasury, warned of an “explosion of danger” from digital markets, especially the misuse of cryptocurrencies, but she also noted that new financial technology may help the country fight crime and injustice.

Time will show what kind of an approach the U.S. government will adopt towards cryptocurrencies and how it will affect crypto prices. But one thing is sure, compared to other countries like China, the U.S. is even late in determining its stance