- The Biden executive order on crypto comes at a time when the United States and the Russian Federation are in a belligerent position following the latter’s invasion of Ukraine.
- The United States is a huge consumer of Gold, however, institutional investors have proliferated in the crypto market over the past two years.
The Biden administration is set to sign an executive order compelling respective government agencies to regulate the crypto market before the end of this week. Coupled with other fundamental aspects, the crypto market has reacted with huge fears, thus the ongoing pullback.
The Biden executive order on crypto comes at a time when the United States and the Russian Federation are in a belligerent position following the latter’s invasion of Ukraine. Notably, the Biden administration has issued sanctions against Russia and also influenced allied and global tech companies to follow suit.
Nevertheless, it is worth noting that the crypto executive order began being structured way before the Russia-Ukraine war began. However, crypto has been a hugely divisive figure in the geopolitical center as it requires no third party or centralized administration.
The global crypto market cap has oscillated around $2 trillion for the past few months. Additionally, the figure had scaled to $3 trillion at the height of the last bull market. Should another crypt bull market materialize before the end of this decade, market experts predict a scenario of Gold being dethroned as the world’s safe haven.
The United States is a huge consumer of Gold, however, institutional investors have proliferated in the crypto market over the past two years. Therefore, you can only expect that the US Congress will draft more bills on crypto regulations. Mind you, a study has shown that over 60 percent of Americans have heard about crypto and are willing to put some of their wealth in it.
Further notes on Biden’s executive order on crypto
The crypto market will be keen to check on possible connections between the executive order the Russian invasion of Ukraine. Nonetheless, crypto leaders have disputed the argument that Russia could use crypto to evade sanctions, claiming Russia is too big for crypto.
Indeed, it is not easy making huge transactions through the blockchain and the industry does not give it the limelight. Nevertheless, the United States regulators are not leaving anything to chance since announcing there is no deployment of boots on the ground. Treasury Secretary Janet Yellen stated last week;
We will continue to look at how the sanctions work and evaluate whether or not there are liquid leakages and we have the possibility to address them. I often hear cryptocurrency mentioned and that is a channel to be watched,
At the beginning of this week, the treasury’s Financial Crimes Enforcement Network issued an alert advising financial institutions to be vigilant against any efforts to evade sanctions in connection with Russia’s war in Ukraine. Acting Director Him Das said in a statement;
Although we have not seen widespread evasion of our sanctions using methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people,
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