The cryptocurrency market is no stranger to regulatory uncertainties, and recent developments suggest that President Joe Biden’s impending executive order on artificial intelligence (AI) could have significant implications, including potential chaos for XRP and the broader digital asset space.
Crypto market’s ongoing regulatory challenges
The cryptocurrency market has long been entangled in regulatory disputes, particularly with the U.S. Securities and Exchange Commission (SEC). While the SEC has yet to make substantial headway, its victories could profoundly affect how cryptocurrencies are traded, utilized, and regulated on a global scale. Uncertainties surrounding regulatory decisions have kept the industry on edge.
BlackRock’s bitcoin ETF application’s ripple effect
One recent event that has captured the crypto world’s attention is BlackRock’s Bitcoin ETF application. This development boosted Bitcoin’s price and had ripple effects on other cryptocurrencies like Ethereum and XRP. The anticipation surrounding this application underscores the market’s sensitivity to regulatory decisions and their impact on digital assets.
President Biden’s AI executive order
The latest leak suggests that President Joe Biden is preparing to unveil an executive order focused on regulating artificial intelligence and ensuring its safe and secure usage. While the primary goals of this order relate to AI, the crypto industry is more concerned about its potential secondary implications and the broader ramifications.
Potential concerns for the crypto industry
The central concern within the crypto industry stems from the possibility that the AI executive order may classify computing power as a “national resource.” This classification could impose obligations on cloud computing providers, including industry giants like Microsoft, Google, and Amazon. Of particular note is the potential requirement for these providers to disclose instances when a customer exceeds a certain threshold of computing resource usage.
Impact on Bitcoin mining
One sector of the crypto industry that could be significantly affected is Bitcoin mining. The energy-intensive process of mining relies heavily on computing power. If computing power is categorized as a national resource, it may lead to increased scrutiny and regulation of Bitcoin mining operations. This, in turn, could impact the Bitcoin network’s security and stability.
Challenges for video game development
The development of video games is another area that might face challenges under the AI executive order. Video game development often requires substantial computing resources, and potential regulations could hinder the growth and innovation in this sector. Gamers and developers alike could feel the impact of increased scrutiny.
AI models across industries
The use of AI models spans various industries, from healthcare to finance. Any requirement to disclose computing resource usage thresholds could disrupt these industries’ operations. Additionally, the potential classification of computing power as a national resource could lead to unforeseen consequences for businesses relying on AI-driven solutions.
Parallels with “Operation Choke Point”
The Forbes report draws parallels with a past initiative known as “Operation Choke Point,” which aimed to discourage banks from serving high-risk industries. Alexander Grieve of Paradigm highlights the similarities, suggesting that the AI executive order could have similar unintended consequences, potentially limiting access to computing resources for legitimate businesses.
Crypto market’s reaction
The crypto market, already sensitive to regulatory developments, is likely to react strongly to President Biden’s AI executive order. Any perceived threat to the stability and innovation of cryptocurrencies like XRP could lead to market volatility and uncertainty.
As President Joe Biden prepares to unveil his executive order on artificial intelligence, the crypto market watches with bated breath. The potential classification of computing power as a national resource and the resulting obligations for cloud computing providers could have far-reaching consequences for various sectors, including Bitcoin mining, video game development, and AI-driven industries. The crypto market’s sensitivity to regulatory uncertainties means that any perceived threat to digital assets like XRP may result in significant price fluctuations and market chaos. It remains to be seen how the crypto industry will navigate these uncharted waters in the face of evolving regulations.
Source: https://www.cryptopolitan.com/joe-biden-executive-order-for-xrp-and-crypto/