Biden’s Executive Order on AI Stirs Up Uncertainty in the Crypto World

The crypto market is reeling from recent hits. A leak suggests President Joe Biden might issue an executive order on artificial intelligence. If true, this could disrupt the Bitcoin and crypto markets even further, according to forbes.

Alexander Grieve, the head of government affairs at Paradigm, raised concerns. He pointed to a report that companies like Microsoft, Google, and Amazon might need to disclose customer purchases of “computing resources beyond a certain threshold.” In essence, this impacts crypto mining and could categorize it as a usage of “national resources.”

This isn’t a trivial matter. The U.S. has been a haven for Bitcoin miners, especially after China‘s 2019 ban on Bitcoin mining. If the U.S. starts seeing computing power as a “national resource,” the crypto industry could face significant challenges.

Grieve speculates that this could be an “Operation Choke Point, but for computing power.” This is a reference to a U.S. Department of Justice initiative from 2013 that aimed to discourage banks from working with high-risk companies. Now, it appears that the U.S. government may be targeting cloud service providers servicing the crypto industry in a similar vein.

The situation is made more volatile by the upcoming Bitcoin halving event. This event is known for causing price fluctuations in the crypto market. Add in the potential executive order, and we have a recipe for chaos.