President Trump’s Exclusion of Ethereum from Crypto Policy Plans: What Does It Mean for You and the World?
On June 18, 2020, President Trump signed an executive order on “Improving the Nation’s Cybersecurity” that touched upon cryptocurrencies but made no mention of Ethereum. This omission raised questions among the crypto community, as Ethereum is the second-largest cryptocurrency by market capitalization, behind Bitcoin.
Background: Ethereum and Its Role in the Crypto Market
Ethereum is an open-source, blockchain-based platform that enables developers to build and deploy decentralized applications (dApps). It is powered by Ether (ETH), the native cryptocurrency of the Ethereum network. Ether is used to pay for transaction fees and computational services on the Ethereum network.
Impact on Individuals: Personal Use of Ethereum
For individuals using Ethereum for personal transactions or investing, the exclusion from the executive order may not have an immediate impact on their day-to-day activities. However, it could potentially affect the regulatory environment for Ethereum and other cryptocurrencies in the long term.
- Regulatory Clarity: The lack of explicit mention of Ethereum in the executive order could lead to a lack of regulatory clarity. This uncertainty might deter some investors and users, especially those who are risk-averse.
- Taxation: The absence of Ethereum from the executive order does not change the existing tax laws regarding cryptocurrencies. Users are still required to report their cryptocurrency transactions and gains to the Internal Revenue Service (IRS).
Impact on the World: Businesses and Global Economy
For businesses and the global economy, the exclusion of Ethereum from the executive order could have more far-reaching consequences.
- Regulatory Framework: The lack of a clear regulatory framework for Ethereum and other cryptocurrencies could hinder the growth of the decentralized finance (DeFi) sector and other blockchain-based industries. This uncertainty could also discourage institutional investors from entering the crypto market.
- International Cooperation: The absence of a unified global regulatory approach to cryptocurrencies, including Ethereum, could lead to jurisdictional issues and potential conflicts between countries.
Conclusion: A Wait-and-See Approach
The exclusion of Ethereum from President Trump’s crypto policy plans does not significantly alter the current situation for individual users or the crypto market as a whole. However, it does highlight the need for regulatory clarity and international cooperation to foster the growth of decentralized technologies and the broader digital economy.
As the crypto landscape continues to evolve, it is essential for individuals and businesses to stay informed about regulatory developments and adapt to the changing regulatory environment. In the meantime, a wait-and-see approach is advisable while the industry and regulatory bodies work towards a more comprehensive and globally harmonized regulatory framework.
Stay tuned for further updates on this topic as new information becomes available.
