Given the uncertainty caused by the Trump administration, bitcoin fans have been anxiously optimistic about how regulators will handle the cryptocurrency space during President Joe Biden’s administration.
Following the looming regulation enforcements, the crypto industry folks are trying to ensure that they don’t fall in the wrong books. They are looking to convince the Biden administration it does more than criminal finance enterprises.
Understanding the Value of Cryptocurrencies
Kristin Smith, CEO of the Blockchain Association, a leader in the cryptocurrency and blockchain industry, said that they are organizing a charming offensive with key administrators as possible new regulations emerge. The group met staff from the treasury, Secretary Janet Yellen, and nominated Deputy Secretary Wally Adeyemo during the planning meetings.
Smith stated that their priority is for them to help Yellen understand crypto, which extends beyond crime organizations’ funding. A Treasury spokesperson did not respond to a request for comment on the issue.
Cryptocurrencies such as Bitcoin is the digital currency used to carry out transactions beyond the usual bank structure through a decentralized blockchain network.
Crypto proponents argue that criminals cannot counterfeit money, and blockchain technology enables transactions to be carried out seamlessly without expensive inspections and processing carried out by the conventional banking system.
Cryptocurrency Growth and Adoption
Once a new concept, cryptocurrencies have won a certain level of acceptance in recent months. Tesla, the automotive electronics firm, made significant investments in cryptocurrency. The company also hopes to add Bitcoin as a payment option.
As Bitcoin earns greater recognition, more than 480% of its value has increased over the previous year—in points trading up to $50,000.
Yet, while the digital money movement is becoming more attractive, cryptocurrencies have also voiced criticality. For the general public, many critics and policymakers doubt its utility. As opposed to the dollar, which supports the federal government’s unquestioning belief and credit, Bitcoin has nothing to do with it.
We cannot determine its intrinsic worth, and since the blockchain is outside the banking regime, it can get used to paying for illicit activities such as drug dealings, some critics argue.
For her part, Yellen called the crypto ‘misuse’ a ‘growing concern.’ She said Bitcoin is a highly inefficient form of performing transactions at a recent New York Times Dealbook lecture, and she fears it’s mostly used for illegal finance.
As a consequence, the crypto leaders of the Biden administration want to develop new legislation. As earlier stated, crypto leaders seek to bring together a group of investors, CEOs, and consultants to regularly meet with vital administrative officials to prevent potential regulations that could stifle industry development.