BIDEN'S EXECUTIVE ORDER - DIGITAL ASSETS
On Wednesday, March 9th, US President Joe Biden signed an executive order to encourage the responsible development of digital assets in the United States. The order lays the foundations for various studies that can guide and explain the technology that is still relatively new but growing rapidly. However, the announcement of new regulations invariably promotes fear and market volatility. In the view of our expert, this executive order is merely providing policymakers with a more coordinated framework to broaden their horizons in the crypto space.
Recent events in Europe have prompted the discussion of financial sanctions. Although the U.S. sanctions against Russia are nothing new, the executive order issued by President Biden was a reaction to their concerns that foreign countries could use crypto to evade financial sanctions. There is, however, a misconception surrounding Bitcoin and its capability to replace the whole monetary system of an entire country. In reality, Bitcoin is unlikely to replace the entire financial system of a country at scale; if this were the case, the Russian economy would not have collapsed. Furthermore, the decentralized ledger of Bitcoin facilitates the tracking of transactions.
The executive order emphases on three major parts:
1) Regulatory Body
A regulatory body is established to oversee crypto operations. Alternatively, this means determining which organization will act as the middleman between the Biden Administration and the crypto market. It is interesting to note that since the evolution of crypto assets, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been battling over the power to regulate. The CFTC safeguards the public from fraud, manipulation, and illicit conduct. In 2015, the CFTC classified Bitcoin as a commodity, which gave them the power to regulate Bitcoin. The primary purpose of the SEC is to enforce the law against market manipulation and protect retail investors. As a result of 2021, “ape movement” associated with hedge funds’ malpractice involving popular meme stocks, the SEC’s ability to protect markets from manipulation has been called into question. Simply put, the SEC is underfunded and wants to regulate crypto as it will give the committee more power, and therefore greater leverage to request funding. Other notable government agencies include The Financial Crimes Enforcement Network (FinCEN) and Office of the Comptroller of the Currency (OCC).
2) Environmental Impact and Protection
There will be a huge push for bitcoin to become what’s known asESG-compliant under this executive order, and agencies like the EPA and theEnvironmental Protection Agency will be catechized to examine bitcoin’s carbon emissions footprint.
3) Stablecoin Market
US finance subcommittees will examine the validity and use case of the stable coin to further determine the direction of the commitment. In other words, it’s a nothing burger.
From the perspective of our analysts, Biden’s executive order boosts the prospect for cryptocurrency. Today, there are more than 10,000 altcoins available.In 2020, approximately $8 billion worth of cryptocurrency was stolen, and in 2021, the number had almost doubled to $14 billion. The crypto industry continues to grow by the day, and unfortunately for those who engage in crypto scams, there appears to be no consequence. FINCEN, for example, would be a useful regulatory authority to ensure a properly regulated crypto sector. Likewise, it would be beneficial if the OCC could collaborate with banks to allow deposits of Bitcoin.Over time, these initiatives would prove beneficial to the crypto market, as they would stabilize the market and pave the way for the future creation of a spot ETF, the ultimate catalyst between where Bitcoin is currently priced and the potential valuation of $100,000 USD.
Crypto Terminology of the Week: Metaverse
In 2022, the metaverse may prove to be one of the most significant developments. Thrust into the spotlight by Mark Zuckerberg, the metaverse is the next generation of the internet. A virtual reality world where users can interact serves as the next evolution of social connection.
Emergen Research projects that by 2028, the market could be worth $828.95 BN. Matthew Ball, the CEO of Epyllion Venture Capital believes that the Metaverse offers a potential $30 TRN investment opportunity. Better yet, corporate America is rushing to capitalize on this opportunity. The Guardian reports that McDonald’s recently filed ten trademark applications, including one for a virtual restaurant that would deliver to homes.
As a part of iMining recent initiatives, the company announced the launch of Meterverse Advisory Group, a virtual NFT-based real estate company that will help develop and manage a portfolio of virtual properties across various blockchain-based metaverses including Decentraland. For additional information, please click here!
Token of the Week: $MANA
Decentraland (MANA) is a virtual reality platform powered by the Ethereum blockchain that lets users create, experience, and monetize content and applications. Decentraland was launched following a $24 million initial coin offering (ICO) that was conducted in 2017.
Carbon Emissions of Bitcoin
Digital Assets Current Events
The FCA notes that none of the crypto exchanges registered have been approved to offer crypto ATM services, indicating that any crypto exchange ATM operating in the U.K. is illegal and should not be used by consumers. Approximately 80 crypto ATMs are located in the U.K, according to data from Coin ATM Radar.
With a falling ratio of bearish put options to bullish call options, the metric is signalling that a number of advanced traders are taking bullish bets on BTC.
Elon Musk, the Tesla billionaire who added $1.5 billion of bitcoin to Tesla’s balance sheet last year, has now said he still owns and will not sell his bitcoin, ethereum, and dogecoin, advising people not to hold dollars during periods of high inflation.
About iMining Technologies
iMining Technologies (the “Company”) is a fully integrated Web 3.0 company, providing Digital Finance, Metaverse solutions and Blockchain technologies.
At iMining, we believe in growth via strategic partnerships and by expanding our Decentralized Finance (“DeFI”) Staking, Digital Currency Mining Infrastructure, Web3 and Exchange tools.
We help institutions, validators, traders and miners generate rewards, access Metaverse that will aid financial success and secure the blockchain ecosystem.
We thrive because of our market knowledge and experienced team.