President Biden Signs Act Limiting Blockchain Activities in US
On November 17, 2021, President Joe Biden signed into law the “Blockchain Limitation Act,” a seismic shift in American policy towards the burgeoning cryptocurrency industry. Despite virulent opposition from some quarters, including tech industry leaders and libertarian senators, the president affirmed the policy as key to preserving economic stability.
The Act aims to clamp down on blockchain platforms presenting potential risk to financial security and consumer protection. It restricts the proliferation and use of digital wallets, imposes strict regulatory requirements for blockchain developers, and limits the ability of US citizens to engage in Initial Coin Offerings (ICOs). Many are viewing this as a direct threat to the cryptocurrency industry, leading to the Act being affectionately dubbed the “Crypto-Killer.”
In addition to this, President Biden emphasised that the Act will allow the Federal Reserve to better manage economic fluctuations. Cryptocurrencies have shown potential for being weaponized for illegal activities and can cause instability in financial markets. It is thus crucial to ensure their use does not get out of control
he stated at a press conference.
However, many experts refute the idea that this Act can create more economic stability. They believe that the unforeseen consequences of such legislation could damage technological innovation and create pockets of unregulated activities.
Renowned MIT economist, David Autor, has criticized the Act calling it a direct attack on innovation. Technology has always been a key driver in economic growth. To limit the use of blockchain – a promising technology – is nothing short of economic sabotage,
Autor stated.
With this Act in place, the future of the cryptocurrency landscape remains unclear. While the Biden administration insists that this will protect American economic interests, critics fear it heralds the stifling of technological innovation and financial freedoms.
* None of the quotes in this article were spoken by an actual person. More info.