With President Biden’s win into the office, there were mixed views of the administration’s stance on cryptocurrencies. The community had grown wary after the nomination of Janet Yellen for the head of the Treasury Department. Yellen had been vocal about her disdain for Bitcoin calling it a hotspot for illegal transactions. President Biden himself has been a strong critic of Bitcoin with two anti-encryption bills presented during his tenure at the Senate.
Bitcoin, and other cryptocurrencies, have garnered interest from everywhere in the current bull run of 2021. Heavy investments from giants like MicroStrategy and Tesla are coming into the crypto market and the rise of the cryptocurrencies continue.
Amidst the cryptocurrency craze, former presidential aspirant Ron Paul has warned of a government crackdown on cryptocurrencies. In an interview with Kitco News, Paul stated the crackdown can take the shape of increased taxation or increased dollar supply in the market.
Bitcoin and other cryptocurrencies have the unique feature of staying immune to shocks in the economy. The pandemic and the subsequent crash of various stock markets was what contributed towards the rise of cryptocurrencies. According to Paul, the government does not like a contender for the place of the reserve currency, the dollar, which is why they will take measures to ensure the growth of the cryptocurrency market is trampled.
However, all hope may not be lost yet because there exists several silver linings as well. Gary Gensler – the new head of SEC – can prove to be an ally of cryptocurrencies given his vast understanding of the technology having been taught on it at MIT.