Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Move Toward Crypto Regulation May Prove Big Step for Bitcoin Adoption

Published 10/03/2022, 10:40 am
Updated 10/03/2022, 10:40 am
© Reuters

© Reuters

By Yasin Ebrahim

Investing.com -- Bitcoin surged Wednesday after President Joe Biden signed an executive order to review the U.S. approach to cryptocurrencies that some say could spur adoption by legitimizing it as an asset class and provide investors with a long-awaited framework to assess the popular cryptocurrency. 

Bitcoin surged 8% to $41,956.

The order seeks to develop a national policy for digital assets, and tasks several Federal agencies to review the risks and opportunities posed by cryptocurrencies and explore ways to regulate them.  

“The fact that this is even taking place legitimizes bitcoin as an asset class because it’s the US government recognising the importance of the change that is inevitably going to take place as a result of bitcoin,” Dan Weiskopf - Co-portfolio manager of the Blok said in an interview with Investing.com on Wednesday.

A good place to start on the path to regulation would be definition. The ambiguity of not knowing what you own, whether is it defined as a security or utility token, has long troubled investors.

“The whole concept of cryptocurrency as a broad definition, across so many different things is confusing,” Weiskopf said.

The idea of big government making a foray into crypto regulation isn’t likely to be welcomed by the Bitcoin purists, or so-called maximalist. They argue that government meddling goes against the thesis of bitcoin as an alternative payment system with no government involvement.

But the purists may have to accept that for bitcoin to fulfil its potential as an alternative payments system, user adoption holds sway. Clarity, or guidance on how to assess bitcoin and other cryptocurrencies will help do that, and ultimately drive adoption.

“My hope would be that some of these folks, who call themselves maximalists, will be pragmatic about it [regulation], because for the utility value, whether it's for Bitcoin, Ethereum, or the asset class in general, more acceptance is simply going to be better,” Weiskopf added

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.