The Biden administration may not follow the same „passive“ approach to crypto regulation, says Bloomberg
Bloomberg’s latest crypto-currency newsletter states that the election of Joe Biden as president of the United States would lead to greater overall adoption of Bitcoin (BTC), including potential approval of an exchange-traded fund for the asset. He also describes the policies applied by President Donald Trump’s administration to crypto as „passive“:
„In our opinion, a potential chairmanship of Joe Biden would help further increase Bitcoin’s price. The new leadership could change the Trump government’s passive policy, to the detriment of the wider crypto market, and push the main crypto currency to the mainstream public, improving the chances of an ETF.
Considering that yesterday the Department of Justice published the 70-page document „Cryptocurrency: An Enforcement Framework,“ the newsletter was probably written before this development.
The author claims that the same forces would hinder the growth of DeFi. Both conclusions are based on the assumption that a „clean-up by Democrats“ could potentially provide greater regulatory clarity in the crypto sector. This year, DeFi exploded in a totally unregulated environment. It is no coincidence that the criminals responsible for the hack against KuCoin have laundered the illegal loot through the largest decentralized exchange, Uniswap.
Bloomberg says that, regardless of the election result, „Bitcoin’s price will continue to rise, regardless of the elected president, but at a more moderate pace. In addition, the newsletter concludes that if the price of the crypto asset continues to rise even half as fast as it did in 2016 to 2020 during the next presidential term, it will reach $80,000 by 2024:
„The apparently unstoppable trends in the US debt/GDP ratio, quantitative easing (QE) and Bitcoin’s rising hash rate indicate that the crypto asset price is more likely to continue to rise during the next presidential administration. About half of the 1,400% increase traced by the 2016 vote would bring the price of Bitcoin up to $80,000 in 2024“.
Yesterday, Square announced that it has acquired $50 million in Bitcoin, reflecting the growing adoption of the asset by the corporate sector.