Despite their relationship being rocky, US doesn’t plan on banning crypto

With cryptocurrencies reaching the popularity they have in such little time, people are wondering just how far it can go. Despite the serious ups and downs that the market has experienced from time to time, there is a very clear upward trend. And even if it isn’t consistent, it is big enough to grab everyone’s attention, especially governments around the world.

Crypto was big enough to make El Salvador consider making Bitcoin a secondary tender, and was enough for Cuba to follow in its footsteps. And this sporadic growth and rise in popularity is exactly why regulators are now on the fence about cryptocurrencies.

But even though some countries have decided to embrace them, others have taken a less than optimal approach. China has decided to go to the other end of the spectrum and ban cryptocurrencies entirely from the country. What was once a flourishing hub of crypto mining and fintech businesses is now slowly becoming a barren wasteland of incredible potential. When the ban hammer dropped on crypto firms, there was a mass migration of various firms looking for sanctuary in different countries.

And even though the US has had its grievances with cryptocurrencies, it does not plan on making the same mistakes that China did. They are not looking to ban crypto from the country seeing the incredible benefits that it can offer everyone. However, they are also not willing to let cryptocurrency in as it is. Therefore the middle ground that they have decided on is regulation of the crypto market.

The president of the United States, Joe Biden, has aired his grievances with cryptocurrencies on multiple occasions. He has said multiple times that crypto is too dangerous and too unreliable to be left loose into the financial system. And as we speak, the President is going over an executive order that he is giving a lot of thought. The executive order will give federal agencies the green light to start analyzing cryptocurrencies. Their analysis will help them decide on the right type of regulation that the industry needs.

The IRS even came up with a provision that specifically said that transactions involving cryptocurrencies that exceeded $10,000 would have to be reported. The IRS has even started to consider cryptocurrencies as assets, and are therefore now eligible for taxes.

Biden has long been against cryptocurrencies and thinks that they should follow in the footsteps of countries like China and ban them. However, all of his advisors are instead nudging him to consider regulations instead, as it can prove to be beneficial in the long run. But even though things are looking a little hot for crypto, nothing can seem to keep it down.