United States President Joe Biden signed an executive order on March 9th directing federal agencies to coordinate their regulatory activities regarding cryptocurrencies and other digital assets. An estimated 16 percent of American adults have invested in or traded crypto.
There has never been a better time for the government to step in and safeguard consumers, investors, and the American economy from a market Securities and Exchange Commission Commissioner Gary Gensler likens to the “Wild West.”
According to a White House fact sheet, digital assets, including cryptocurrencies, have surged in popularity in recent years and reached the $3 trillion mark in November. An estimated 40 million adults in the United States have invested in, traded in, or used cryptocurrency, according to the government.
For years, regulators and oversight authorities, like the SEC, CFT, and FSA, have been seeking to adapt existing legal frameworks to supervise the new markets of bitcoin, Ethereum, and hundreds of other token and assets. That may be the case, but investors and legislators alike believe such steps are insufficient to keep an eye on what is quickly becoming one of the world’s largest marketplaces and to position the United States as a global leader in this field.
The bitcoin market has become even more volatile as a result of the unrest in Ukraine, and experts expect this trend to continue. More people are using cryptocurrency and the stock market has recently aligned, which further connects them to the ongoing international battle. Immediately following the attack, Bitcoin dropped below the $35,000 mark, and Ethereum fell back to below the $3,000 mark.