The crypto world is abuzz as U.S. President Joe Biden’s administration issues a game-changing executive order that could have far-reaching implications for the cryptocurrency market.
As per a report by Forbes, while the said order primarily focuses on the regulation of artificial intelligence (AI), it might greatly impact digital assets like Bitcoin, Ethereum, and XRP as it touches on key elements on the world’s largest cryptocurrency.
In what has been a turbulent year for cryptocurrencies, regulatory uncertainties have loomed large, overshadowing the industry’s meteoric rise. Yet, despite these challenges, cryptocurrencies have continued to gain ground, fueled by institutional interest and expanding adoption. Notably, the anticipation surrounding BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF) has contributed to the recent upswing of crypto prices.
The leak unveiled the Biden administration’s intention to introduce a “sweeping” and “wide-ranging” comprehensive executive order addressing AI regulation. This revelation has, however, sparked concerns within the crypto community about potential collateral consequences.
Various sources reportedly alluded to the executive order’s wide-ranging nature, emphasizing its commitment to fostering “safe, secure, and trustworthy” AI.
Notably, one element of the executive order that has raised eyebrows among crypto enthusiasts is the prospect of classifying computing power as a “national resource.” Such a classification could compel cloud computing providers like Microsoft, Google, and Amazon to disclose instances where customers purchase computing resources beyond a specified threshold.
This heightened transparency could extend to various activities, including Bitcoin mining, with the potential to bring about substantial consequences for the Bitcoin ecosystem.
That said, prominent figures from the tech industry gathered at the White House on Monday, October 30, for the order’s unveiling.
Amid these revelations, calls for cryptocurrency regulations in the U.S. have grown louder, with politicians increasingly associating the industry with illicit financing, notably in conflicts like the Hamas-Israel dispute. Nevertheless, the path to clear and comprehensive regulations in the U.S. has been slow, leaving the industry in a state of limbo as it waits for legal and operational clarity.
It shall be recalled that in March 2022, President Biden issued his first executive order pertaining to cryptocurrencies, triggering a 10% surge in Bitcoin’s price. However, despite the order targeting six key areas, namely consumer protection, financial stability, combatting illicit finance, promoting innovation, enhancing financial inclusion, and boosting economic competitiveness, very little progress towards having an all-round crypto regulation has been made to date.