Source : coinquora.com
- Anticipation around Biden’s pending executive order on cryptocurrencies is met with life in the crypto market today.
- US dollar-backed stablecoins are all down while major cryptocurrencies are up.
- In other news, Bitcoin rose above $38K, a key resistance level.
US President Joe Biden is expected to issue an executive order on cryptocurrencies this week. This executive order will push a number of government agencies to study cryptocurrency and CBDC with the aim of coming up with a government-wide strategy on how to regulate cryptocurrencies.
The legislation is expected to curb the US government’s fear of cryptocurrencies as a threat because of the high degree of anonymity they grant token holders. Governments need to keep track of the inflow and outflow of funds in and out of their jurisdiction, a task made exponentially difficult thanks to cryptocurrencies.
Since governments will struggle to link real-world identities with accounts on blockchain and cryptocurrency networks, then the amount of annual taxes that the revenue services can bring in is expected to be reduced. These are the reasons why the US has been tightening its control over US-based crypto exchanges like Coinbase, Kraken, and Gemini.
On the other hand, the cryptocurrency market is showing signs of life since its retracement over the last couple of months, despite Biden’s intentions to come up with a way to regulate cryptocurrencies.
As can be seen by the table above, the top cryptocurrencies by market cap are up today according to CoinMarketCap. On the other hand, almost all US-dollar backed stablecoins are down except for USDT which is up 0.01%. USDC is down 0.06%, UST is down 0.26%, and BUSD is down 0.14%.
One possible reason is that traders and investors are taking out their crypto from USD hedges and buy back crypto in anticipation of a healthier market soon.
In other news today, the price of Bitcoin broke $38K – a key resistance level. Both bears and bulls will be monitoring this level closely to determine the trend of the market in the coming days.