10.03.202206:44 Forex Analysis & Reviews: Biden signed a new decree on cryptocurrencies in the United States

It became known that US President Joe Biden signed the first of its kind decree on cryptocurrencies, instructing federal agencies to coordinate their approach to this sector. Now all efforts to regulate the crypto industry will focus on consumer protection, financial stability, the legitimate use of cryptocurrencies, the leadership of the United States in the global financial arena, the availability of financial services, and innovation.

This is the first decree dedicated exclusively to the growing digital asset sector, which directs federal agencies to better information about their work in the digital asset sector. However, it does not set out the specific positions that the administration wants the agencies to fulfill. Also, there are no new rules in the decree that cryptocurrency companies must comply with. By and large, this decree is just a set of beautiful phrases and calls for the development of the cryptocurrency industry in the country.

However, not everyone agrees with this approach. Several Biden administration officials take a neutral tone regarding digital assets, and someone even says that the growth of the cryptocurrency sector may threaten the US financial system. But there are also advantages since digital assets can also provide opportunities for innovation, as well as increase the competitiveness of American companies on the world stage, contributing to increased access to financial services. At the moment, about 40 million Americans, or 16% of the total US population, have invested in cryptocurrencies or are trading them.

The new decree has been in development since October 2021. As for investor protection, this is one of the main areas that the regulatory authorities pay attention to. The key problem of the cryptocurrency market is called volatility, as it can cause significant damage to investors. Let me remind you that before the coronavirus pandemic, the price of bitcoin was about $ 10,000, then there was a sharp rise to $ 70,000, after which bitcoin again collapsed to the level of $ 30,000. The decree puts forward a nationwide approach to understanding not only macroeconomic but also microeconomic risks for each person, investor, and business that interacts with these assets.

The issue of the digital dollar was also touched upon. The decree also directs agencies to assess whether the US can issue its own central bank digital currency and whether its issue will be considered in the national interest. Last year, quite a lot of effort was spent on the part of the Federal Reserve System to study the issue of the digital dollar. In recent months, several central bank reports have been published assessing both the political and technological issues that need to be answered before a central bank digital currency (CBDC) can be issued.

The decree also pays a lot of attention to national security. The US Department of Justice and the Federal Bureau of Investigation have their own relatively young units dealing with crimes committed using cryptocurrencies. Currently, money laundering is the biggest problem for ecosystems and cryptocurrencies developed on their basis.

As for the technical picture of bitcoin

Bitcoin has once again played back the failure that was observed over the weekend and has now rushed to the $ 41,033 mark. Active purchases began yesterday in the area of $ 38,000, where a trace of major players is visible. Now everything is tied to the levels of the greed of investors and their intimidation of what is happening on the world stage, but the negotiations between Russia and Ukraine are good for everyone. In the event of another decline in the trading instrument, only a breakdown of $ 38,000 will fail the trading instrument below the minimum of $ 34,300, and there it is at hand to $ 32,900. It will be possible to talk about stopping the bear market in the current conditions only after BTC returns above $ 41,033. Only then can we expect to recover to the area of $ 45,300 and $ 48,500. The fact that bitcoin feels pretty great in the current conditions proves the interest in it, keeping its bullish potential in the long run.

As for the technical picture of the ether

The focus remains on the resistance of $ 2,756. Only consolidation above will return the prospect of an upward correction to the market. In the meantime, the probability of a large bearish trend will be valid. Only the breakdown of $ 2,756 will serve as a new impulse to reach the level of $ 2,942 and $ 3,190. If the pressure on ETH persists, purchases in the area of large support of $ 2,520 are not excluded. A break in this range will be a reason to go to the lows: $ 2,312 and $ 2,149, where the major players will again begin to actively act.