THE POSSIBILITY OF CRYPTOCURRENCY REGULATION

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Whether or not the government loves cryptocurrency is unknown. Do they want to produce digital money or do they want to control everything in the crypto space? Despite the fact that everything seems unclear, recently released information is noteworthy and provides further explanation. President Biden signed an executive order on the ethical development of digital assets back in March of this year.

Governmental organizations now have the chance to start investigating what is happening with cryptocurrency. Some individuals have the opinion that regulation of the cryptocurrency business will be beneficial. Regulations will significantly aid in bringing in more investors to the area given the frequent reports of hacking in the cryptocurrency market. Despite how beneficial regulation is, if the government overregulates the sector, the technology may be rendered obsolete. The government's only goal is to increase the security and safety of the sector. They want to control the environment, but not excessively.

According to government organizations' reports, 16% of Americans bought cryptocurrency, and this asset carries significant hazards for users. They claimed that dealers of these coins frequently deceived buyers about the possibility of receiving enormous profits in the future. Since this is how the financial market functions, the disclosure issue that plagues the majority of altcoins is nothing new. When a new technology emerges, the early adopter makes huge profits while everyone else loses their lives in the crash. Crypto will not be any different as long as regulations are put in place to protect individuals.

7 million Americans do not have a bank account, and 24 million do not use bank life insurance, according to federal organizations. For many, using cryptocurrency to send money abroad is quite helpful. It is far less expensive than other transfer techniques. Since it is so difficult to create something helpful, the government is attempting to prove that crypto is beneficial. One factor is that people may not agree with the concept behind technology even though it is beneficial in and of itself. Its impact on the environment is a subject of much debate.

They added another statement that attracted my attention: it will give the regulator more authority to take action. They will always test cryptocurrencies to determine whether they are securities or commodities. If a cryptocurrency is a security, it must be registered with the SEC and is subject to a number of regulations. Bitcoin will be classified as a commodity.