Biden Administration to Weigh In on Cryptocurrency

An upcoming National Security Council memorandum will instruct federal agencies to investigate the best ways to utilize the opportunities inherent in crypto and mitigate the risks. Cryptocurrencies have long been just outside the edge of the mainstream. But as more and more advisors and financial institutions begin to see the value of digital assets, they are becoming more mainstream. A solid government policy around crypto could further push it into the establishment.

Senator Cynthia Lummis (R-WY) plans to introduce a bill to regulate cryptocurrencies and integrate them into the financial system as well as create taxation rules and consumer protections.

Crypto has been having a wild few weeks. Yesterday say bitcoin hit new lows. Ethereum is down 53%, and solana has fallen 64%. Cowen Analyst Jaret Seiberg said on Monday that the administration’s intervention is “symbolically significant as the White House would be acknowledging that crypto is becoming economically important.” Seiberg added, “The White House would not issue such an order if it was not convinced that crypto will continue to grow and spread throughout the economy.”

It is speculated that the White House’s plans include policy around policing digital wallets and trading platforms and addressing the use of cryptocurrency for illicit purposes.

With cryptocurrencies down amid broader market volatility, now is an excellent time to get exposure to this increasingly mainstream asset class. The VanEck Bitcoin Strategy ETF (XBTF) offers investors exposure to bitcoin futures using a using a unique tax structure that sets it apart from other bitcoin futures-focused funds.

Alternatively, investors can get exposure to the space through the Vaneck Digital Transformation ETF (DAPP). DAPP focuses on crypto equities and digital infrastructure. Because equities aren’t direct exposure to the currencies themselves, they tend to have less volatility.

For more news, information, and strategy, visit the Crypto Channel.