26 The Impact of Biden's Executive Order On Crypto

Bitcoin Bottom Line

On this episode of “Bitcoin Bottom Line,” hosts Steven McClurg and C.J. Wilson are joined by Josh Olszewics from Valkyrie. They open by discussing the new crypto executive order. Bitcoiners have been hearing about the possibility of a crypto related executive order over the past few months and many have been pulling coins off exchanges, coing-joining, and selling in preparation. After the release of the order, there was nothing that would majorly impact users and the price skyrocketed.

Wilson asks for McClurg’s perspective on if this is a positive or negative sign for the market. McClurg explains that anytime there is a sideways market and the macro perspective is not great but they have not yet gone down, the news cycle has complete control over the price. Historically, many people traded based on the news and it continues today.

The trio goes on to discuss Senator Elizabeth Warren’s letter to the United States Treasury. The letter stated how crypto could be used as a weapon against sanctions, especially in Russia. McClurg brings up how gas prices are not refutable; they are higher on the West Coast due to less efficient transportation. Only roughly three percent of all U.S. oil comes from Russia and the rest is from the Middle East, therefore it should not have a forty to fifty percent effect that has been seen over the last year. The reason for this increase is due to inflation as well as self-interest and lack of competition. “There is an opportunity to charge more, therefore they will.” McClurg states. Wilson adds in, “it goes back to Adam Smith’s economic principles, if you eliminate competition then self interest goes up. Similarly, if you eliminate supply, then demand will increase because self-interest is tied to demand and creates consumer competition.”

They circle back to discussing the executive order. Olszewics states that the order was tamer than anticipated and that it opens a door to start seriously talking about crypto. Wilson states that the fear was far greater than the reality. McClurg brings up the specifics from the executive order and says, “number one is to protect U.S. consumers and businesses, through which they are trying to reduce systematic risk... bitcoin will eventually look like real estate. It is property, not security and many other trade associations will make sure there is no fraud.” One of the other topics that he found interesting was, “promote U.S. leadership in technology and economic competitiveness, which is what individual states are attempting.” The group wraps up the episode by talking about politicians finally increasing their knowledge on cryptocurrency and the excitement to see one another in Bitcoin Miami.