The digital asset business has been criticized in a recent White House study, and many now worry that stricter laws may be implemented in the United States.
A 36-page chapter of the President’s Economic Report was devoted to the cryptocurrency business. It went to considerable efforts, among other things, to refute the “perceived appeal of crypto assets.”
According to the report, cryptocurrencies serve as “primarily speculative investment vehicles” and digital assets are volatile since “many of them lack a fundamental value.”
Further highlighting the problems of crypto, the White House study claimed the asset class has been “mostly about creating artificial scarcity in order to support crypto assets’ prices.”
In encouraging words, the paper also briefly discussed the new FedNow digital payment network and central bank digital currencies (CBDCs).
Many in the industry were surprised by the report’s emphasis on cryptocurrencies, with Paradigm co-founder Fred Ehrsam noting that a whopping 15% of the document was “devoted to crypto FUD.”
Others disagreed with the report’s characterization of cryptocurrencies and Bitcoin (BTC) as lacking essential value. Galaxy CEO Mike Novogratz proposed the government should return him all the taxes he had spent on this allegedly worthless commodity.
Meanwhile, the overall anti-crypto attitude from the US government has undoubtedly caused some community members to assume that additional regulation might be on the horizon for the United States.
Circle, the issuer of the popular stablecoin USDC, is among those who have already made efforts to prepare for this situation, having only this week revealed that it has asked for regulatory permission in France.
Circle made the news after the company’s CEO, Jeremy Allaire, returned from a European tour. He applauded the United Kingdom’s ambitions to become “a crucial global market for innovation in digital assets.”
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