U.S. Legislation Threatens Crypto with Presidential Control: Ethereum’s Future in the Spotlight

• A new proposed law in the United States could grant the president the power to block cryptocurrency transactions, inciting significant debate in the financial community.
• Scott Johnsson, a notable crypto industry expert, has voiced concerns over the extensive reach of this legislation.
• The law broadly defines crypto assets to include any digital value recorded on secure, distributed ledgers, and could impose stringent conditions on foreign financial institutions operating in the US.

Discover the implications of a proposed US law that might give the president authority over crypto transactions, sparking debates and raising concerns within the industry.

Understanding the Intent of the Proposed Law

The new legislation aims to substantially increase the president’s control over blockchain protocols and smart contracts, particularly those run by entities under foreign sanctions. Critics argue this could lead to unprecedented user-level blocking of protocols and smart contracts, significantly broadening presidential authority.

The Scope and Potential Impact

This proposed law would enable the president to impose restrictions on transactions between US citizens and foreign entities linked to terrorism. This could dramatically impact the operation of foreign financial institutions within the United States, challenging their ability to engage in crypto-related transactions.

The Future of Ethereum Amid Regulatory Changes

Ethereum’s ecosystem is expanding rapidly, now boasting nearly nine times the daily active users it had four years ago. Analysts predict Ethereum could reach a price of $22,000 by 2030, driven by increasing adoption in both the financial and technology sectors. Data from Bitwise indicates a surge in daily active users for Ethereum and its Layer-2 solutions like Arbitrum and Polygon, illustrating a robust growth trend.

Metrics and Projections

As of early 2024, Ethereum’s daily active user base has grown to approximately 2.25 million, marking a substantial increase from past figures. Research from VanEck suggests that Ethereum’s revenue per user could exceed that of most Web2 businesses, underpinned by greater acceptance among participants in traditional financial markets.

Delays in the Launch of Ethereum ETFs

SEC Chairman Gary Gensler has stated that spot Ethereum ETFs in the US still face several procedural hurdles before they can go public. Despite receiving regulatory approval for multiple spot Ethereum ETF funds in May, Gensler noted that their market debut may still be several months away.

Regulatory Steps and Market Expectations

Although the SEC has approved several Ethereum spot ETFs, their entry into the market will take time due to procedural requirements. Investors and market watchers continue to monitor these developments closely.

Conclusion

The proposed US legislation could significantly reshape the crypto landscape by granting the president unprecedented control over digital transactions. On the other hand, Ethereum’s promising future, marked by increasing user engagement and institutional interest, faces regulatory hurdles in the form of delayed spot ETF launches. Investors and stakeholders must navigate these evolving dynamics carefully.