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Crypto Industry Welcomes Biden’s Executive Order — Expert Says ‘It’s About as Good as We Could Ask’ – Regulation Bitcoin News

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Many people in the crypto industry welcome President Joe Biden’s executive order on crypto. A crypto regulatory expert says, “It’s about as good as we could ask.” Another sees the order as the federal government viewing “cryptocurrency as a legitimate, serious, and important part of the economy and society.”

Crypto Community Welcomes Biden’s Executive Order

U.S. President Joe Biden signed an executive order (EO) Wednesday establishing a national policy for digital assets. The order is “the first-ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology,” the White House described.

Noting that the order also calls on federal agencies to work together towards the country’s crypto policy, the Blockchain Association, which has 80 member companies, wrote:

We welcome this approach and are ready to collaborate with agencies on behalf of the industry.

Jerry Brito, executive director of D.C.-based think tank Coin Center, sees the executive order as “a good signal to serious people who’ve been holding back from getting involved.” He wrote:

The message I take from this EO is that the federal government sees cryptocurrency as a legitimate, serious, and important part of the economy and society.

Jake Chervinsky, a well-known lawyer in the crypto space, agreed with Brito’s assessment, emphasizing: “Despite a few loud voices in government relentlessly attacking crypto in recent months, the EO is balanced & constructive.” He continued:

Anyone worried that President Biden’s executive order would spell doom & gloom for crypto can fully relax now. The main concern was that the EO might force rushed rulemaking or impose new & bad restrictions, but there’s nothing like that here. It’s about as good as we could ask.

Anderson Kill Hailey Lennon said: “Seeing a digital asset EO happened a lot faster than I expected. Actually some really positive comments in it.”

Core Scientific co-founder Darin Feinstein commented: “Bitcoin in the USA was de-risked by EO. The USA government endorsing innovation in and around Bitcoin is monumental. As capital continues to flow into this industry, it is up to the 50M USA bitcoin holders to make certain their representatives continue to protect this industry.”

FTX CEO Sam Bankman-Fried called it: “A constructive EO to discuss customer protection and economic competitiveness in digital assets.”

Coinbase’s Kathryn Haun said: “Today’s EO is a step in the right direction for some American leadership in web3 and could bring order to what’s become a sorely fragmented regulatory landscape. We’re especially encouraged it directs all agencies to partner [with] experts ‘outside’ govt as they work to define policy.”

Crypto Is Not Going Away, ‘It Could Be a Turning Point’

Some people see the executive order as evidence that cryptocurrency is not going to go away.

Binance CEO Changpeng Zhao (CZ), for example, tweeted: “I am guessing crypto is not going away.”

Ripple CEO Brad Garlinghouse, who has been in an ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) over the sale of XRP, opined: “Like many of you, I thought the Biden Admin’s EO would acknowledge crypto, but not detail specifics on next steps for regulation.”

Garlinghouse continued, “However, I was pleasantly surprised & inspired by the EO acknowledging the *need* for evolution and alignment of the govt’s approach to crypto,” elaborating:

First and foremost, this is an affirmation that crypto is here to stay … I don’t want to mistake activity for progress, but this does feel like it could be a turning point.

Some People Are Skeptical

While some people are skeptical about Biden’s executive order, they are glad that it does not contain anything more damaging to their businesses or the industry.

Bitwage tweeted: “It doesn’t seem like there is anything damning in there, but we can’t help but feel suspicious. For the time being, we’re thankful that there were no serious regulations on companies like ours.”

Bitcoin skeptic and goldbug Peter Schiff opined: “The relief rally in bitcoin based on Biden’s executive order on cryptocurrencies not being as onerous as it could have been won’t last. More regulation is coming that will only raise the cost and lessen the appeal of bitcoin.” He tweeted to his son that the EO is a sell signal.

Chervinsky further noted:

One potential impact of the crypto EO: it may slow down members of Congress working on new draft legislation, especially Democrats, who won’t want to contradict the national strategy that @POTUS just announced or front-run the study & report process that the EO kicked off.

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biden executive order, crypto executive order, Crypto regulation, cryptocurrency executive order, Cryptocurrency regulation, digital asset executive order, Executive Order, executive order crypto, Joe Biden, us executive order, US government, US President

Do you think Biden’s crypto executive order is positive for the industry? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.




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Why Gold Is Beating Bitcoin In 2022

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Bitcoin continues to underperform as a general “risk-off” sentiment has investors driving toward gold as a safe haven asset.

Not Risking It

Concerns about the Russo-Ukrainian war continue. The U.S. inflation struggles at a four-decade high and Fed rate hike fears prevail. The uncertainty extends to the world economy as a recession is expected instead of a recovery. The IMF’s managing director Kristalina Georgieva called it “a crisis on top of a crisis.”

“The war is a supply shock that reduces economic output and raises prices. Indeed, we forecast inflation will accelerate to 5.5 percent in advanced economies and to 9.3 percent in emerging European economies excluding Russia, Turkey, and Ukraine. ” The IMF stated last week.

Reuters recently quoted Commerzbank analyst Daniel Briesemann, who talked in a note about the factors that have “lent buoyancy to gold in recent days,” mentioning the “strong buying interest on the part of ETF (Exchange Traded Fund) investors” and news about the Ukraine war.

“Russia appears to be preparing to launch a major offensive in the east of the country – that is generating considerable demand for gold as a safe haven,” the analyst said.

This summarizes the “risk-off” sentiment at the moment. As expected, equities suffer as investors are selling risky assets and purchasing the ones negatively correlated to the traditional market. Thus, the crypto space is struggling alongside de stocks market and gold is rising.

Bitcoin Outperformed By Gold

Data from Arcane Research’s latest weekly report notes that it has been a gloomy year for the “digital gold.” In the first three weeks of 2022, Bitcoin sank 25% and it is still down by 18% in the year despite its slight recovery.

Similarly, Nasdaq records a 19% decline in the year, having underperformed against bitcoin “by a small margin,” notes the report, adding that “This is surprising given that bitcoin has tended to follow Nasdaq, albeit with higher volatility.”

The general fear over geopolitical and macroeconomic uncertainty has given gold the safe-haven asset spotlight once more. The asset outperformed all the other indexes seen below with a 4% gain.

Physical gold outperforming “digital gold” in 2022 | Source: Arcane Research

Meanwhile, the currency market is performing with “the same risk-off patterns.” The Dollar has been proving its “risk-off” dominance as the US Dollar Index (DXY) is up 7%. The Chinese yuan has taken a hit over concerns about the country’s “zero-covid” policy –which creates issues for the global supply chain– and the slowing down Chinese economy. In contrast, investors have been running to the US Dollar for safety.

Bitcoin supporters usually refer to the coin as “digital gold” alleging it is a safe haven asset, and this narrative had held well while BTC had been “uncorrelated with most other major asset classes,” but the tide is shifting with the 2022 scenario as investors are rather placing the coin “into the risk-on basket”.

A previous Arcane Research report indicated that bitcoin’s 30 -day correlation with the Nasdaq is revisiting July 2020 highs while its correlation with gold has reached all-time lows.

A pseudonym traded noted that “As Bitcoin adoption goes on and more institutional investors enter the market, the correlation of BTC and stocks becomes more and more tight. That is a paradigm that the crypto world struggled to come to terms with in the past but is now more real than ever. A healthy stock market is good for Bitcoin.”

Meanwhile, the general sentiment of traders seems to be bearish, with many saying that the coin could visit the $30k level soon.

Bitcoin
Bitcoin trading at $39k in the daily chart | BTCUSD on TradingView.com

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Attendees talk the future of NFTs

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The crypto community headed to Nassau in the Bahamas this week for the inaugural Crypto Bahamas conference.

Like most conferences, panels fill up the agenda and on Wednesday the topics at Crypto Bahamas ranged from NFTs to crypto in sports and to asset allocation in Web3. During one particular conversation, titled Evolution of NFTs: Culture, Utility and Regulation, panelists had some insightful musings on the NFT market.

To put the Crypto Bahamas conference into context, Sam Bankman-Fried’s cryptocurrency exchange FTX moved its headquarters from Hong Kong to the Bahamas in Sept. 2021. It recently inked a multi-year partnership with Anthony Scaramucci’s investment firm SkyBridge Capital, and its events arm SkyBridge Alternatives, or SALT. They jointly presented the conference.

That’s why the NFT panel consisted of multiple perspectives from Tristan Yver, head of strategy at FTX U.S., Joseph Doll, attorney at Fenwick law firm, Roham Gharegozlou, the chief executive officer at Dapper Labs, and Sarah Hammer, the managing director of The Stevens Center for Innovation in Finance at The Wharton School. Zack Guzman, writer for the Meta-owned newsletter platform Bulletin, moderated.

Gharegozlou pointed out how new the NFT market truly is when “most people have only been thinking about it for a year and a half,” making valuations “very immature.” As the CEO of Dapper Labs, the company behind NBA Top Shot,  Gharegozlou recognized that “utility, rewards and the how you value and NFT is primarily based on the strength of that of the community.”

He added that a good way for an NFT collection to build a strong community is to have multiple tiers of scarcity. In the case of NBA Top Shot, at the higher price end there is extreme scarcity, but there are also millions of “common” moments so that people can “get their first NFT and see how it feels without breaking the bank.” 

Tristan Yver echoed that the current valuation and pricing model for NFTs is based on a collective perception on value based on the amount of people willing to buy an asset for a certain amount. He anticipated a “movement away from this consensus view to a more unique singular view where people buy things that resonate with them rather than what resonates with a larger community.”

Joseph Doll chimed in to say that “communities need to be thoughtful about democratizing access.” There are some “massive” barriers to entry to certain projects, he said, including not being early enough or not having enough capital at the time. He questioned, “That’s not what crypto is about, right? It’s kind of about the exact opposite of that.” Democratization, he suggested, can come in the form of derivative projects at better price points.

Another important point brought up by Yver was the reality of scams, especially on Discord and Twitter. He said that “we need to move past security aspects to be able to really bring in the next large mass of users.” He recommended talking among family and friends or asking a Discord moderator to make sure “you click the right link when minting that NFT” because “wallet security sucks right now.”

Gharegozlou even said that Elon Musk, the new owner of Twitter, should use Web3 to fix Twitter’s fraud problem, just as Discord should use Web3 authentication and verification as well. “Once NFT’s are the sort of identity bridge across all these different social networks, identity and assets, authenticity, provenance,” then the system can be more resilient he added.

When asked what “main alpha” the audience should bear in mind, Doll said to engage with and be part of these NFT communities even if it’s “scary,” because getting scammed is a “part of the journey.”

Sarah Hammer, who leads the Cypher Accelerator at Wharton business school, said that the school is launching an incubator specifically for NFT projects in partnership with Dapper Labs because the “NFT model is a business model for the future.” She emphasized that the greatest way to grow and innovate in the space is to increase education efforts in order to get more people learning and working together.

Related: Goldman Sachs reportedly eyes FTX alliance with regulatory and public listing assistance

Recently the Bahamian government allowed residents to use digital assets, including the world’s first central bank digital currency, or CBDC, to pay for taxes in 2022.