The cryptocurrency market has been under scrutiny due to regulatory uncertainties. Simultaneously, Wall Street’s growing interest in the crypto space has left many wondering about the future of digital assets.
Although XRP has recorded major victories resulting in needed regulatory clarity, recent developments have added to the uncertainty, with reports suggesting that President Joe Biden is on the verge of issuing a far-reaching executive order related to artificial intelligence (AI). A recent Forbes report highlighted how this AI order might impact the crypto market, including XRP.
Read Also: SBI VC Trade Shares Its XRP Price Projection
Crypto Market’s Regulatory Concerns
The crypto market has been grappling with the U.S. Securities and Exchange Commission (SEC) for years. Although the SEC has not made significant progress, victories for the regulator could have far-reaching effects on how cryptocurrencies are traded, used, and regulated by governments worldwide.
The Forbes report also mentioned the anticipation around BlackRock’s Bitcoin ETF application that recently boosted Bitcoin’s price, impacting Ethereum, XRP, and other cryptocurrencies.
Biden’s AI Executive Order
The recent leak hinting at President Biden’s AI executive order has taken center stage. This executive order, set to be unveiled at the White House, is primarily focused on regulating artificial intelligence and ensuring its safe and secure use. However, it’s not the order’s primary goals causing concern within the crypto industry but the potential secondary implications that have raised eyebrows.
Crypto Industry’s Concerns
The report suggests that the AI executive order might classify computing power as a “national resource.” This classification could trigger obligations for cloud computing providers, including industry giants like Microsoft, Google, and Amazon. Most notable is the potential requirement for these providers to disclose when a customer exceeds a certain threshold of computing resource usage.
This requirement could significantly impact activities like Bitcoin mining, the development of video games, and the utilization of AI models in various industries. The report highlights that Alexander Grieve of Paradigm draws parallels with “Operation Choke Point,” a past initiative discouraging banks from high-risk industries.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: XRP Price Prediction As Ripple Seals Partnership With Uphold
Bitcoin mining, which relies on energy-intensive high-powered computers, has been a subject of heated debate due to its significant energy consumption. There are fears that such regulatory actions could stifle growth and innovation within the crypto space.
After China’s ban on Bitcoin mining in 2021, the U.S. became a significant hub for miners. This executive order might drastically change that. Some in the crypto industry label the traditional financial sector’s retreat from the crypto market as “Operation Choke Point 2.0,” indicating government and regulatory influence.
With the coming Bitcoin halving, it will be interesting to see how President Biden’s executive order affects Bitcoin and the crypto market.
Follow us on Twitter, Facebook, Telegram, and Google News
