President Biden plans Executive Order for cryptocurrencies in February

Reports over the weekend suggest that US President Biden is going to introduce an Executive Order for cryptocurrencies at the beginning of February.
The order is expected to span across government and plans to weigh-up the benefits and disadvantages of digital assets, alongside implementing a reporting system for government on cryptocurrencies.
Officials are yet to confirm the rumour.

What has been confirmed is that there have been several top-level meetings with senior figures at the White House relating to the subject, and it is speculated further details are expected to be outlined by Biden next week.

https://finance.yahoo.com/news/president-biden-plans-executive-order-111927265.html

There needs to be regulation and an official position on DeFi

Well maybe this pump is an indication of a good thing? Who knows - everything is controlled by very few people now.

Nope.

administrative errors said:

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Nope.

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That's correct. Anyone who's been paying close attention knows what's coming down the chute in the next couple months. The good news is it's easy to plan accordingly.

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Regulations aren't good for crypto.

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Regs will legitimize crypto.

Fedup said:

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No way this is a positive for crypto. Biden hates people who made money and he doesn't know or understand anything other than more govt intervention. Regulations aren't good for crypto.

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I disagree (see below)

ChemAg15 said:

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Deluxe said:

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That's correct. Anyone who's been paying close attention knows what's coming down the chute in the next couple months. The good news is it's easy to plan accordingly.

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Care to let the rest of us in on the scoop, Nostradamus?

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I'm definitely not Nostradamus (wish I was though!). I just pay very close attention to what's actually happening.

I'll stop being so cryptic.

What were the crypto-related things in the BBB bill that didn't end up passing?
What does Gary Gensler think about Bitcoin/crypto?
What regulations would be need to put in place for institutions to get more comfortable investing in Bitcoin?

Overhauls to exchanges are coming. They'll be subject to stricter reporting requirements and will have to cease peddling unregistered securities. Exchange operators will be more liable for safeguarding against market manipulation and involving the authorities with rules are violated. Guessing there will be new limits on leverage/margin trading too.

Stablecoins will be treated like banks and forced to disclose their asset holdings. They might be subject to FDIC insurance requirements. The "stablecoin dollar" is about to use Bitcoin rails to flow internationally. They need to be more sound/secure than USDT and USDC are today. This will pave the way for US commercial banks to issue their own stablecoins. I'm guessing the stablecoin "industry" will grow 100x in the next year or two.

PoS tokens, crypto interest products, etc will be reigned in and have to apply for charter/designation with the SEC or some other TBD entity.

Tax stuff - wash sale rule will be applied, transfers of $10k will be reportable, etc.

Bitcoin will continue to be seen as digital property. Again, the Bitcoin network is the rails by which the dollar is about to reach into the far corners of the world. It's a golden goose for our treasury. It won't be touched. Possible that ownership disclosures may need to be made though (similar to home property records).

With alot of the "wild west" noise of the crypto space alleviated, big institutions will begin to pile into Bitcoin.

One thing I'm not 100% sure about is how far the EO will be able to go without deferring to congressional action and normal procedure of initiating law. I think alot of the EO itself will be a deferment to various agencies to implement regulation. I'm sure lawsuits will be in the works from states that don't want to comply.

Regardless, effectuation will be a big win for Bitcoin. It will clean the space up from nefarious actors and sh*tcoin peddlers. Also make SEC/tax positions more clear.

Wash sale rule is going to eff up US exchanges. Why trade on those when you can go to a DEX where it's not reported?

May need to jump back into Sushi and Uni

TxAG#2011 said:

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Wash sale rule is going to eff up US exchanges. Why trade on those when you can go to a DEX where it's not reported?

May need to jump back into Sushi and Uni

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It's a good question and while I think they will almost certainly take action to prevent wash sales, I don't know exactly how they're going to enforce it.

It could be as simple as disclosing to people that if they take coins off "licensed" exchanges, they're personally liable for their tax reporting and responsible for showing their work in the event of an audit. And if the IRS doesn't think your work ties out, you owe what they say you owe plus a nice penalty.

I suppose it's also possible that they could prohibit access to DEX tokens? I don't think a DEX adhere to SEC exchange rules/KYC/other IRS rules even if they wanted to.

Did this happen, or what?