Impact of Biden administration on U.S. Stock and Crypto
Since the day Joe Biden was sworn as the 46th U.S. President, several agendas of Biden administration are expected to bring a good sign for investors.
This new administration plans to boost the economy of the U.S. through the program including direct payments to U.S. citizen and the set a fund to distribute vaccine of corona virus in this pandemic era. This program is a $1.9 trillion Covid-19 relief package that can be a fresh breeze for investors as the economy will grow stronger and the market will go up after that.
Why do the market increase after Biden’s inauguration? The inauguration that was held on 20nd January will bring stability for investors to manage their stocks after the ups and downs market condition due to the tense of the election process.
In fact, the statement of Janet Yellen, Biden’s Treasury Secretary that said to carry out precise action towards the damage of the pandemic. The administration should be pushed to “act big”. Surprisingly, it triggered S&P 500 to rise until 14.3%. This is interesting compared with John F Kennedy inauguration that gained 8.8% in the market. Other two major indexes also closed at its finest record. The Dow Jones industrial increased up to 0.08% while Nasdaq jumped into 2%.
The stimulus proposal of Biden administration brings a greater hope for the economic recovery after the pandemic stroke. According to an article from Forbes, there are several stocks that surge due to Biden’s agenda. Ford grow up to 8%, while Invesco and Google parent Alphabet surged up to 6.5% and 6%. Not only give a positive impact on those stocks, it also brings up stocks of Amazon and Microsoft up to 4%.
It seems that the new government under Joe Biden’s hand brings a good environment for investors regarding to the agenda of Biden administration. The economic number will have a better record since Biden will focus in combating the corona virus which the earlier government only distributed vaccine for only 12.3 million people while Biden’s will vaccinate over 20 million people.
If the coronavirus is no longer a threat, the economy in the U.S. will get healthier than expected before. It resulted in the advanced movement of cyclical stock for the next several months of Biden administration. Sectors like energy which rose to 15%, financials rose up to 5.1%, and materials grew to 4.4%, will continue to grow along with the recovery of U.S. economy condition.
In the running of Biden administration, the U.S. retailer’s stock hit its highest new record of $380 even it dropped 2% in the following day. But still, it is seen as a rare thing. Moreover the leading stock come from GameStop which has never get this such of shares number at $354.83.
Let’s see what happen to the Crypto industry under the new administration of Joe Biden and his Vice President, Kamala Harris. Both of Biden and Kamala will create and shape a new crypto policy for U.S. that is possible to improve and enhance the crypto industry..
The clearer and better regulatory of crypto that will be conducted in this new administration bring several key points.
One of critical issue in crypto industry is its security system. By improving the security on crypto transaction, it surely will make a sustainable improvement since everything now is in digital savvy era. FinCEN or Financial Crime Enforcement Network plans to create rules to bring crypto transactions under scrutiny to avoid any cyber crime that might occur in the transaction process.
The rule proposed is FinCEN requires crypto exchanges to record the customer’s info of address and name for the transaction over $3.000 per day and per person. This rule is still controversial since it could break decentralized finance smart contract that doesn’t include information such as name and address. But still this regulation is proposed to prevent money laundering and other cyber crime.
This regulation is the kind of rule that crypto industry, such as Gold Storage should watch out and understand more. It might be a good regulation to improve safety for gold purchase but the industry should adapt and learn from it to bring the best result.
Biden also stated that he would appoint Gary Gensler, former Chair of Commodity Futures Trading Commission to head the SEC or Securities and Exchange Commision. This is a great step since Gensler does understand the crypto and blockchain world. People believe that Gensler will make some improvement through regulatory that is friendly with crypto industry. He is expected to approve the bitcoin exchange traded fund.
The leadership of two other commissions like Commodity Futures Trading Commission (CFTC) and Office of the Comptroller of Currency (OCC) will be also changed under the Biden hand. But yet, it is still unclear who are the trusted people to head CFTC and OCC. Still, the change of leadership in crypto industry will make a healthier and greater regulation.
Other agenda that will make crypto industry greater is that Sherrod Brown who is going to run the Senate Banking Committee will focus in the real-time payment. The implementation of this idea is by creating Fed Accounts that will likely to be implemented in the postal banking where there are plenty of post offices which provide the transaction. Moreover, not only in the post office but this transaction can be done via online and perhaps in the small bank.
One of the online crypto transaction can be done through Gold Storage. This platform is based on GOLD Ethereum-based ERC20 token which makes an instant and convenient way to do gold transaction digitally. The advantages to use this gold for investor’s crypto are it will ensure the high liquidity and the tokens are backed by physical gold stored in a secure vault. It also provide low service cost and no transfer fee for the customer.
This real-time payment suppose to support the ease on the crypto transaction process that can reach every single area in the United States.
This regulation surely will increase the level of crypto transaction. Therefore, it needs to be considered that the crypto industry such as Bitcoin relly on the energy intensive and it is powered by the oil or coal plants. Even some of stakeholder in this industry said they use renewable energy sources, still the industry needs to be wise and mindful of the environmental issue and costs.
Biden’s regulation might take this into a new regulation in the near future. So, before get deeper into this thing, it is better to prepare to implement the steps to concern to environmental cost.
Under theBiden administration, it is expected that Biden will create a crypto-friendly legislation and policy along with the improvement of economic recovery agenda which is proposed.
Digital Gold Stablecoin’s details:
Website: https://gold.storage/en/home
Whitepaper: https://gold.storage/wp.pdf
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Twitter: https://twitter.com/gold_erc20
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Bitcointalk: https://bitcointalk.org/index.php?topic=5161544.0
Author’s Detail:
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