In late September, the Chinese government moved to criminalize all forms of cryptocurrency trading within the country, thereby becoming the first major world economy to outlaw Bitcoin, Ethereum, Dogecoin, and all of the other nearly 6,000 forms of blockchain fintech out there. This runs in stark contrast to some other countries that have embraced the emerging tech more closely, such as El Salvador, which recognizes Bitcoin as a national currency.
Meanwhile, the U.S. has stayed relatively mum on how to address the continuing growth of cryptocurrency and its legitimacy as a financial instrument. President Biden, however, is reportedly planning to change that, by considering an executive order that would, among other things, add regulations and tax reporting framework to the notoriously unregulated fintech.
And as the data show, just over half of the Gen Pop supports this regulatory move.
This majority, however, may be mostly driven by people who have never invested in cryptocurrency before.
Meanwhile, those who intend to invest in cryptocurrencies over-index in supporting more government regulation on the technology. This may indicate that more government regulation of crypto could actually increase its overall growth among consumers and investors.
However, it could also indicate that the technology would become more of a speculative investment (like stocks or foreign exchange), rather than a legitimate financial tool.
This can be a potential concern for those who got into crypto to sidestep government involvement in economic and financial transactions. And the data backs that up.
Unsurprisingly, those who invest in crypto in order to avoid the government, as well as for a desire for fast, easy, and safe transactions, are the least likely to support Biden’s executive orders.
On the other hand, those who see crypto as more of a stock asset, are likely to support the measures. This is unsurprising as well, given that those who are most concerned about crypto’s volatility are the most supportive of the potential executive orders.
Interestingly, however, respondents who self-reported that they follow trends in technology are the most supportive of government regulation of the technology.
Perhaps those who know the most about blockchain tech are aware of potential benefits with further regulation. Meanwhile, those who follow trends in the financial markets, while still in favor overall, are less overwhelmingly so.
Maybe market watchers don’t quite see cryptocurrency as totally relevant to traditional financial instruments yet. These executive orders, however, may change that relationship entirely.
CivicScience will continue to keep an eye on how President Biden’s orders affect the value and mainstream legitimacy of cryptocurrency as they are enacted.