The Crypto industry has been operating under uncertainty regarding its future. This is about to change as Joe Biden, the President of The United States of America has announced an executive order to support the Crypto industry.
Through the executive order, Joe Biden will attempt to fix the lack of framework around Cryptocurrencies. This has received a warm welcome from the community and investors.
Bitcoin Gains 8%
Everyone was looking forward to Joe Biden announcing the executive order. Now that it has been announced, the community can have a sigh of relief.
One of the most anticipated orders looks to extend support to the crypto industry. This has started working in favor of Bitcoin already. It gained 8% to exchange hands at $41,944. The value, for now, is back to $39,320.99; however, bitcoin predictions estimate the digital coin to cross its all-time high value of $68,789.63 by the end of the year.
The estimation of $72,000 is very much possible, assuming that certain factors remain constant and there are no major setbacks. You can find out more about what the future may have in store for bitcoin by clicking here.
It was not just bitcoin that gained trading value. Other cryptocurrencies like Ethereum also witnessed a sharp increase in their records.
This executive order has received a warm welcome from across the community. Traders, whether individuals or institutions are also looking at it with high optimism.
A lack of regulatory framework was often cited by the experts as a barrier to mass adoption of Cryptocurrency. With the executive order in place, that barrier will no longer be applicable, and traders will better engage in exchanging their preferred digital assets.
Experts believe that the lack of a proper framework had also kept a door closed, holding the United States of America back from gaining decent profits.
Travis Kling, the Chief Executive Officer of Ikigai Asset Management, stated that the executive order made it clear that the government was – at least – not considering banning cryptocurrency. The government was rather embracing it.
The executive order announced by Joe Biden emphasizes the need to protect the American consumers along with the interest of investors and businesses. It additionally looks to review the impact of cryptocurrency on the global financial system and mitigate systemic risk.
The Central Bank is also considering issuing digital currency. This area has also earned a spot in the executive order as it directs the government to explore the true potential in terms of needs and technological infrastructure.
Janet Yellen, the Treasury Secretary of the United States of America, issued a statement in favor of the executive order. She explained that the executive order called for a coordinated and comprehensive approach to digital asset policy.
Joe Biden’s announcement of the executive order has initiated a process of 6 months after which there could be possible policy proposals from different agencies.
Certain drawbacks are also expected to come out if the executive order is fully implemented. Kristin Smith, the Executive Director of the Blockchain Association, said that the risk was that the Government would go around to recommend measures that could be more stringent than the Crypto industry is ready to manage, driving the innovation overseas.
Kristin Smith also expressed optimism by stating that the executive order could create an opportunity to engage. She added that policymakers were much more open to drafting reasonable policies due to an increase in the Crypto industry.