🚨🔥 Want to know how politics could shake up the crypto market? The current situation could well be the key to a new era for Bitcoin and its colleagues!
Joe Biden will remain president for the rest of his term, but the real suspense lies in the November presidential race against Trump. The recent succession uncertainty initially shook crypto markets, sending Bitcoin plunging nearly $1,500 in less than 30 minutes as investors reacted to the potential instability.
However, this fall was short-lived. Traders quickly realized that when it comes to crypto policies, a change could actually be beneficial. Biden's reign has left many industry leaders frustrated by his approach that is seen as restrictive, hampering innovation and causing harm to consumers.
In March 2022, Biden's crypto executive order sparked optimism by directing government agencies to assess the risks and benefits of cryptocurrencies. But the official regulatory framework released six months later was deemed insufficient by many, with lingering uncertainties over which agency had jurisdiction to regulate the market, creating tension between the SEC and the CFTC.
Coinbase has been vocal about the need for action, and in June 2023 its chief legal officer, Paul Grewal, warned that the United States is falling behind other countries due to the lack of rules clear. “The United States is pushing technology and innovators abroad because of the lack of clear rules and regulations for cryptos. The rest of the world is not waiting and is taking advantage of our absence,” he said.
Biden's controversial veto of a bill to repeal an SEC accounting policy also fueled criticism. This rule, dubbed SAB 121, has been called “punitive and anti-digital assets” by Kirstin Smith, CEO of the Blockchain Association. It made crypto custody difficult for financial institutions, while Biden asserted that his administration was ready to collaborate to develop a balanced regulatory framework, without anything concrete emerging.
The unexpected fall of FTX, involving funds mismanaged by Sam Bankman-Fried, a major contributor to Biden's campaign, further compounded the situation. Pressure mounted on the White House to find out when these funds would be returned to victims.
And now ? Biden is focused on his COVID recovery in Delaware, and all attention is turning to his potential successor. Kamala Harris, current vice president, appears to be a leading candidate, but nothing is guaranteed. Jake Chervinsky, legal director at Variant Fund, points out that the Democratic Party has a golden opportunity to regain a significant share of the crypto vote.
The new candidate must:
Recognize crypto as a key technology and commit to fostering its development
Admitting that the SEC’s approach to regulation has failed
Propose balanced policies between innovation and consumer protection
Clarify who will lead key agencies like the SEC and CFTC
Collaborate with crypto entrepreneurs and investors
In the days to come, we will know more about who will face Trump in November. One thing is certain: whoever it is, they are unlikely to be as pro-crypto as the Republican ticket.
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