Several days ago, the crypto market was confidently rising, whereas most analysts supposed that the trend would be long-lasting. However, soon after that, the market slumped.
The surge in bitcoin and other cryptocurrencies was spurred by Joe Biden’s executive order, which “mandates government agencies to take a closer look at issues from developing a potential digital US dollar to combating illicit finance.” Just in one day, the number one cryptocurrency appreciated by more than 8% and approached the price of $42,000 per coin. Other crypto assets also followed the uptrend. Thus, Ethereum jumped by 7.7% to $2,730, Terra surged by 13% to $97.16, whereas such tokens as Monero and Zcash soared by 19.9% and 14.8% respectively. Cryptocurrencies’ reaction to the possible adoption of the bill caused rumors about a new rally. However, all the assumptions turned out to be wrong. The document published on the website of the US Treasury Department was deleted.
The sound reason for a rise vanished together with the bill. Bitcoin returned to the levels near $38,000 and dragged other crypto assets. At present, the US does not have any laws to regulate the crypto sphere. That is why several institutions are trying to regulate the market simultaneously: the United States Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Office of the Comptroller of the Currency (OCC), the Federal Reserve as well as prosecutors, legislative bodies, and local commissions. Since cryptocurrency is considered property, profits from digital assets are taxed on capital gains or business income (for miners).
