Ethereum price dips as the Biden administration pushes for more stringent regulations

Posted: 18 February 2022 6:39 pm
News
EthereumPrice0218_Finder_1800x1000

President Biden and his team are pushing for the creation of a regulatory framework within the next 180 days.

  • Ethereum's market dominance index (DI) has risen once again, currently standing at 18%.
  • Circle, the company responsible for the governance for ETH-based stablecoin USDC, has seen its valuation rise to a staggering AUD$12.5 billion (US$9 billion).
  • ETH's weekly losses currently stand at over the 5% mark.

Ethereum, the world's second largest cryptocurrency by total market capitalisation, has proceeded to dip from AUD$4,300 to a relative low of AUD$4,000 before showcasing a slight upward surge. Despite the slight positive momentum, the premier altcoin is still seeing red, showcasing daily losses of around 6%. At press time, ETH is trading at a price point of AUD$4,035.

Amidst these mounting losses, it is expected that over the coming fortnight, the American government — under the purview of President Joe Biden — will issue an executive order directing relevant agencies to study the digital asset market and create a comprehensive regulatory framework to streamline its governance.

To elaborate, Jennifer Schonberger, an official associated with the Biden administration, noted that the order will seek to bring together the Office of the Attorney General, the State Department, and the Treasury Department to look at how the American digital asset market should be governed. Not only that, the government bodies will also seek to devise a plan through which to roll out a central bank-backed digital currency over the coming year or so.

In addition to this, the director of the Office of Science and Technology Policy, Alondra Nelson, noted that she and her team will seek to come up with a holistic infrastructure plan so as to support the creation of the above said digital Dollar. Furthermore, it is being reported that over the course of the next 6 months, Nelson and her team will prepare a report related to ledger technology — à la blockchain tech — as well as prepare a report on its environmental impact (all within the next year and a half).

How to buy Ethereum

Avalanche network registers massive growth

Layer 1 proof-of-stake network Avalanche, has released a new cross-chain bridge — in conjunction with the Umbria Network — to help facilitate the exchange of liquidity between the Ethereum Mainnet and Avalanche (AVAX) ecosystem, resulting in the latter witnessing a surge in its overall network activity as well as token demand.

As a quick refresher, Avalanche is a blockchain platform designed to support a number of different virtual machines — such as the popular WebAssembly and Ethereum Virtual Machine. As a result, it is able to incorporate a wide array of sub-chains into its framework, allowing devs to freely operate across different networks with the touch of a button.

Stablecoin operator Circle sees its valuation shoot up

Circle, the company responsible for governing USD Coin (USDC), revealed that its market valuation has grown to a staggering US$9 billion. This development comes after the company revised its merger agreement with Concord Acquisition Corp, an SPAC that came into being back in 2020.

The new deal is set to be finalised by 8 December, but will have a grace period up until the end of January 2023. Circle and Concord first revealed their plans for a merger all the way back in July 2022.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Get into cryptocurrency

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site