- Despite the SEC delaying ETFs, Bloomberg analysts see room for more adoption in the coming months.
- More Crypto adoption is also expected to enter the US market.
Crypto adoption in the United States is facing major pushback from policymakers, who had in time past put a strain on the level to which crypto founders could dominate the market. The Securities and Exchange Commission (SEC) which is designed to protect investors’ rights, has been critiqued for its strict policies. There are also restrictions to crypto sales and issuance in the country. However, Bloomberg sees the market taking a different turn in the future.
Although the current environment for crypto is nowhere near what investors and market players want, Bloomberg analysts see multiple factors propelling a change. As quoted from their February Intelligence report;
“We expect U.S. policymakers will embrace cryptos with proper regulation and ETFs for these reasons: dollar dominance, jobs, votes, lots of revenue (tax) and — most importantly — it’ll run counter to China’s antipath.”
Dollar dominance, which is a reference to the increase in USD adoption that has been made possible due to stablecoins, is especially important for the country. Seeing as fiat is falling behind against leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), stablecoins are helping to increase the demand for the USD.
Bloomberg also expects that the US will, in a bid to stay ahead, push for further crypto adoption. This is already in motion, as many U.S. states are embracing Cryptocurrency mining and usage amongst residents.
Cryptocurrency adoption in the United States
Cryptocurrency mining has seen a significant increase in the United States. After China —the leading cryptocurrency mining home — cracked down on the mining industry, many countries opened their doors for cryptocurrency miners. The United States led the industry to become the country with the highest Bitcoin mining hashrate. However, with this new title comes a lot of responsibility.
Recently, the US was reportedly investigating the crypto mining scenes in the country. Market player Kevin O’Leary has responded to the new development, warning that staying carbon neutral will help miners stay on the SEC’s good side.
On the other hand, Crypto adoption among US residents has increased rapidly. U.S. Congressman Tom Emmer, and New York Mayor Eric Adams, are among the few notable personalities receiving their salaries in Bitcoin. As the usage increases, the country stands to benefit from taxing holders in the country.