The White House is thinking about ways to boost national security. This will include developing a cryptocurrency regulatory framework.

Regulation would devastate the value of bitcoin and other cryptocurrencies. Layers of checks and balances would be added. Furthermore, cryptocurrency exchanges will be subject to increased regulatory reporting requirements. While this will improve national security, the uncertainty may have an impact on cryptocurrency prices.

There is no need for regulations.

Bitcoin and other cryptocurrencies have outperformed all other assets over the last decade. A sudden need to regulate them could put an end to their outstanding performance. Crypto investors may view the regulatory proposal as a diversion. Government regulations, on the other hand, could lead to the currency's legitimacy. Countries will have another way to facilitate transactions in addition to worldwide acceptance.

Risks

Crypto's purpose would be undermined by regulations. Cryptocurrency is unregulated, anonymous, and simple to use. It would take time to create new regulations. It will add to the confusion surrounding cryptocurrency. Platforms must already assist customers in distinguishing between the thousands of crypto currency options.

If the government legalises a few cryptos, their prices will rise. Those prohibited by the government would lose value.

For the time being, expect the government to devote more time to researching the platform, miners, and value of each cryptocurrency before putting in place a regulatory framework.

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