Bitcoin and other cryptocurrencies may benefit positively with Joe Biden in office as seen in recent massive gains.
One of the most important news items of 2020 came nearly at the top of the year, because the results of the presidential elections within the USA came out, with the incumbent President, Donald Trump, losing bent Joe Biden. This election was perhaps the foremost keenly followed the election in decades, with many many people, both globally and within the USA itself, expressing relief that Donald Trump had been voted out of office. Biden’s administration is predicted to be drastically different from Trump during a number of the way, but one among the surprising beneficiaries of this might be the crypto sector within the USA.
Cryptocurrencies are all the craze over the past year. Bitcoin has risen by quite 300% within the last 12 months, recently breaching $44,000 following news of Tesla’s $1.5 billion purchase, while other tokens, while being at a lower cost than Bitcoin, have grown even more. Ethereum, for instance, is up by nearly 700% within the same period of time. This has led to an enormous amount of interest, also as an investment, into the crypto space, both within the USA and globally. The likes of Bitcoin, Ethereum, Litecoin, and other crypto tokens have managed to become a part of mainstream finance, and that they could theoretically replace traditional fiat currencies just like the dollar and euro. More and more people are starting to make regular transactions through cryptocurrencies, and this has been possible thanks to the blockchain network that underpins crypto, making transactions much quicker and safer as a result. There are various businesses and industries which have rushed to require advantage of this also, then it’s important that the govt and regulators within the USA, the most important crypto market within the world, adopt a friendly stance towards crypto.
This looks likely to happen during the Biden presidency. He has appointed Gary Gensler because the head of the SEC, which was seen as a positive sign, since Gensler has taught a course on cryptocurrencies at MIT, and has testified on the crypto market before Congress multiple times, calling Bitcoin ‘digital gold’ in one such hearing, which shows his accommodating attitude towards crypto. He has also pushed the case for blockchain and therefore the vast potential it’s to vary the way many industries operate. However, he has also involved greater regulation of crypto exchanges, and has called Ripple’s XRP and therefore the Facebook Diem tokens as securities, and thus also to be regulated by the SEC.
Some of Biden’s other appointments have also brought cheer to the crypto community. He has appointed Reena Aggarwal, Chris Brummer, Lev Menand, and Simon Johnson to his financial regulator review team, who are advising him on his appointments to varied financial regulators like the SEC. All four of those individuals have spoken and written publicly on cryptocurrencies and blockchain, with the bulk of these being in favor of the world. Finally, while new Treasury Secretary Janet Yellen has previously said that she is ‘not a fan’ of crypto, she also believed, in her previous role as chair of the Federal Reserve System, that the Fed didn’t have the authority to supervise or control the bitcoin market, and is probably going to possess similar views on the facility of the Department of the Treasury also.
Thus, with crypto regulation within the USA being much more hooked into the SEC, it’s likely that Gensler will convince be a lover of the crypto sector, and this could help boost the world over the subsequent few years within the USA.