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Biden Administration Accused of Trying to “Quietly” Ban Bitcoin, Ethereum, and Cryptocurrencies

The cryptocurrency market has been bouncing back from its recent lows, but the Biden administration’s approach towards bitcoin, ethereum, and other cryptocurrencies has raised concerns among investors. The recent swings in the prices of cryptocurrencies have come as the U.S. government outlines its long-anticipated crypto roadmap. However, the Biden administration has been accused of trying to “quietly” ban these digital currencies in a move referred to as “Operation Choke Point 2.0.”

Venture capitalist Nic Carter, a partner at Castle Island Ventures, wrote in a Substack post that some in the crypto space believe the recent attempts to isolate the crypto industry from the banking system are reminiscent of a 2013 government initiative that sought to cut off undesirable industries from banking services. He added that the U.S. government is using the banking sector to organize a sophisticated and widespread crackdown against the crypto industry, and that the administration’s efforts are expressed plainly in memos, regulatory guidance, and blog posts.

The rejection of crypto bank Custodia’s application by the Federal Reserve has cast doubt over the future of crypto companies Protego and Paxos, who have applied for national trust bank charters. The Biden administration has warned that allowing ties between cryptocurrencies and the broader financial system to deepen would be a “grave mistake.”

However, some in the crypto space remain optimistic, with Binance CEO Changpeng “CZ” Zhao warning that Wall Street giants are facing an “existential risk” if they fail to adopt crypto technology. Market analyst Marcus Sotiriou at digital asset broker GlobalBlock wrote that a complete ban on cryptocurrencies by the U.S. government would be a “huge mistake” and result in the rest of the world getting ahead in the important crypto and blockchain technology revolution.

In conclusion, the Biden administration’s approach towards cryptocurrencies has caused mixed reactions in the market, with some investors feeling nervous while others remain optimistic. The future of cryptocurrencies in the U.S. remains unclear, with the government warning of the risks associated with these digital assets and the crypto industry waiting for a more favorable regulatory environment.

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