- Bloomberg yesterday revealed that an executive order on the cryptocurrency sector is expected this week
- President Biden has been expected to sign such an order for months
- What are the facts surrounding the announcement?
Bloomberg revealed yesterday that President Biden is expected to sign an executive order this week over regulation of the cryptocurrency sector, following disputed claims about its impact on Russian sanctions. There have been several hot takes on the proposed order, but what do we actually know? Our quick guide gives you the rundown.
It Won’t Be a Ban
President Biden will not, as some sensationalist headlines proclaimed, be issuing a ban on cryptocurrency use. Many politicians have called for such action, but those in positions of influence and power have poo pooed this idea: Federal Reserve chair Jerome Powell told the House Financial Services Committee in October last year that the U.S. had “no intention to ban” cryptocurrencies.
Immediate Action Will be Limited
According to Bloomberg, the contents of the executive order will be to “outline the U.S. government’s strategy for cryptocurrencies” and will “direct Federal agencies to examine potential regulatory changes, as well as the national security and economic impact of digital assets.”
Bloomberg did not reference a deadline for when this report will be submitted, but these things can take months or even years.
Cryptocurrency Markets Will be Volatile
Regardless of the limited amount of actual action, the cryptocurrency markets will be volatile. Bitcoin dropped slightly yesterday when Bloomberg published its report, but the facts are that this order has been expected for some time and is therefore probably priced in. A further drop could be expected depending on the severity of the news, but this will likely be a fakeout. Just buy the dip and hold, people. Buy the dip and hold.