Biden Administration Hostility Towards Crypto Continues
There has been a circulating rumor about an executive order waiting to be launched by the Biden administration. If this is true, the hostility of the administration towards crypto continues after the approval of the controversial infrastructure bill.
In a report by Bloomberg, the executive order is part of the government’s effort to set up a government-wide approach to regulating the crypto industry. As further stated in the report, federal agencies will be directed and authorized to conduct research and produce recommendations:
“The proposed directive would charge federal agencies to study and offer recommendations on relevant areas of crypto—touching on financial regulation, economic innovation and national security, said the people, who asked not to be named discussing plans that are still under consideration … The framework would touch a range of bureaucracies, from the Treasury Department and financial regulators to the Commerce Department, the National Science Foundation and national security agencies.”
Although a draft of the executive was already circulated to various government departments, it is yet to be seen if the White House will give it a go.
This comes to light as various regulatory bodies in the country like the Securities and Exchange Commission, the Federal Reserve, and the Justice Department raised their concerns over cryptocurrencies and the risk associated with them.
The battle between regulation and cryptocurrencies continues in the land of the free. Will cryptocurrencies soon prevail and survive this enormous battle?
Pro-Bitcoin US Senator Invested $100K on Bitcoin
On August 16, US Senator Cynthia Lummis, one of the early adopters of BTC (bitcoin) purchased an additional $100K on the cryptocurrency. This was revealed in a Period Transaction Report filed by the senator on Oct. 7.
The filing is in accordance with the Stop Trading on Congressional Knowledge Act of 2012 (STOCK Act) wherein U.S. senators and senior staff with earnings above $119,554 are required to disclose certain financial transactions. This includes any purchase, sale, or exchange of any stock, bond, commodities future, and other securities on transactions above $1,000.
Sen. Lummis started investing in bitcoin in 2013 and despite the hostility of the present US administration, she continued to be one of the proponents of cryptocurrencies particularly bitcoin.
In February, during an interview with Anthony Pompliano’s podcast, she expressed her interest to educate others including her colleagues on BTC (bitcoin) and the public crypto space, opportunities, and blockchain technology. She believes that the cryptocurrency often referred to as “the digital gold” is a store of value and can be compared to natural resources as it has a market cap that can be likened to a finite resource.
50% of 2M Axie Active Players Have No Crypto Experience
According to Aleksander Leonard Larsen, co-founder of Axie Infinity, active players of the leading NFT game have now increased to 2M. This was revealed by Larsen at a panel discussion about the metaverse during the Token2049.
Surprisingly, from the 2M active users, 50% or 1M are totally new to cryptocurrencies. Larsen stated:
“It’s really hard to begin playing Axie right now.”
He compared the new users to onboarding players swimming to an island where drowning may become inevitable. He further stated:
“Basically, they can’t get to the game itself, because it’s so hard.”
Hence, Larsen felt the responsibility to educate these new players to avoid them from drowning as they swim to the island of crypto.
“I see our role in the space as educators.”
He also pointed out the large number of users who have sent him emails to sought his assistance including their private key. From the average of 500 daily support tickets his team receives, 25% of which have no bank accounts. He stated:
“That’s the level of education that we have to deal with.”
Commenting further on the rapid growth of Axie users, he stated:
“Imagine, we have two million players now, and it’s so hard to get started. What happens when it’s going to be super easy?”
Although their main focus right now is growth, he also stated “how can we teach these people and open up the benefits in our world at first?” Then what could be the solution to this? Larsen said, “go and join the metaverse, or the broader digital universe.”
Institutional Investors Favors Bitcoin Over Gold Against Inflation
“Bitcoin is a hedge against inflation”, this resonates with institutional investors as they choose the cryptocurrency over gold against inflation according to JP Morgan. The recent trend was the driving force resulting in BTC (bitcoin) price rally this week.
A note shared by JPMorgan with clients on Thursday stated:
“The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge.”
The note further states:
“Institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold.”
On Oct. 5, BTC (bitcoin) breached the $50K mark and closed at $51,504 reclaiming its $1T market cap. In February, BTC (bitcoin) reached its $1T market cap and continued on a price rally. After recording its all-time high at almost $65K, its price slumped to $30K in May as a result of a crackdown by the Chinese government.
Despite the fierce battle between regulation and cryptocurrencies in powerful countries like the United States, United Kingdom, and China, the growth in bitcoin adoption by institutional investors speaks volumes on the level of confidence in digital assets.
Another factor that has contributed to the recent price rally according to JP Morgan was the reassurance from lawmakers that no ban will be implemented on the usage and mining of cryptocurrencies.
JP Morgan CEO Jamie Dimon, a critic of BTC (bitcoin) remains skeptical though about the virtual asset. In response to a question whether bitcoin should be banned or regulated during his interview with Times of India, he stated:
“I don’t really care about Bitcoin. I think people waste too much time and breath on it. But it is going to be regulated. […] And that will constrain it to some extent. But whether it eliminates it, I have no idea and I don’t personally care. I am not a buyer of Bitcoin. […] That does not mean it can’t go 10 times in price in the next five years.”
With the shifting of institutional investors to BTC (bitcoin) and support from banks like JP Morgan less the CEO, will cryptocurrencies soon find their place in the real world?