President Biden issued an executive order calling government agencies to consider new regulations of digital currencies. This order marks the first time the Biden administration has formally weighed in on the highly contentious subject. On Monday morning, the EU voted against a Proof-of-Work(PoW) ban, as lawmakers and environmental activists have been pushing for regulation on crypto mining since November of last year.
Biden Administration Formally Addresses Cryptocurrency Regulations
President Biden issued an executive order calling government agencies to consider new regulations of digital currencies. The order was widely anticipated to have a negative impact on the overall market, but the benign stance on regulation was celebrated by cryptocurrency advocates instead. In addition to outlining the risks cryptocurrencies pose to the economy, national security, and climate, the order also noted possible benefits.
As details from the executive order were released online, the price of Bitcoin rose almost 9%, topping out at just under $43,000. This order marks the first time the Biden administration has formally weighed in on the highly contemptuous subject. The report is also considered by many to be a step forward toward the possible issuance of a central banking digital currency. The Federal Reserve’s upcoming real-time payment system, FedNow, is expected to be fully functional in 2023.
Crypto Bill Addressing Proof-of-Work Sent to Monday Vote
Internationally, the European Union voted against a Proof-of-Work (PoW) ban on Monday morning, while lawmakers and environmental activists have been pushing for regulation on crypto mining since November of last year. Several proponents of PoW mining argued that the potential for miners to reduce the carbon footprint of flared and vented natural gas is enough to offset overall emissions completely, and implementation of a mining ban in Europe would be detrimental to the industry and long-term goals.
Global Markets Face Extended Uncertainty
In U.S markets, stocks had their worst-performing week since January, primarily due to increased global uncertainty and risk from international conflict between Russia and Ukraine. The Biden Administration announced that they, along with other G7 countries, will strip Russia of normal trade relations and impose additional sanctions and tariffs to limit financing options. The trade restrictions subsequently caused Russian markets to collapse and resulted in an 85% drop in Russia’s Ruble against the dollar over the last week.
