A proposed law in the United States could empower the president to block cryptocurrency transactions, sparking significant debate. Scott Johnsson, a prominent voice in the crypto sector, criticized the legislation for its extensive reach. The law’s broad definition of crypto assets includes any digital value recorded on secure distributed ledgers. Under this law, the president can restrict transactions between US citizens and foreign entities linked to terrorist activities, imposing stringent conditions on foreign financial institutions operating in the US.
What Does the New Law Intend?
The legislation aims to give the president extensive control over blockchain protocols and smart contracts, especially those influenced or operated by entities under foreign sanctions. Critics argue this could lead to user-level blocking of protocols and smart contracts, expanding the scope of presidential powers considerably.
How Will Ethereum’s Future Shape Up?
Ethereum’s ecosystem continues to grow, boasting nearly nine times more daily active users than four years ago. Analysts forecast Ethereum reaching $22,000 by 2030, driven by growing adoption in financial and tech sectors. Data from Bitwise highlights a surge in daily active users for Ethereum and Layer-2 solutions like Arbitrum and Polygon, suggesting a robust upward trend in demand.
As of early 2024, Ethereum’s daily active user base has expanded to approximately 2.25 million, a significant increase from previous years. Crypto asset research by VanEck anticipates Ethereum’s revenue per user to surpass most Web2 businesses, bolstered by its acceptance among traditional financial market participants.
Why Is the Ethereum ETF Launch Delayed?
SEC Chairman Gary Gensler noted that spot Ethereum ETFs in the US face several procedural steps before becoming publicly available. Despite regulatory approval for multiple spot Ethereum ETF funds in May, Gensler emphasized that their market debut could still be months away.
Key Takeaways on Crypto Regulation
- The proposed law could significantly extend presidential authority over crypto assets.
- Critics are concerned about potential overreach and user-level blocking of protocols.
- Growing Ethereum adoption and increased daily active users could drive its price to $22,000 by 2030.
- SEC approval for Ethereum ETFs is in place, but market entry may take additional time.
In summary, the new US legislation could dramatically influence the crypto landscape by granting the president unprecedented control over digital transactions. Simultaneously, Ethereum’s promising future, bolstered by increasing user engagement and institutional interest, faces regulatory hurdles in the rollout of spot ETFs.