Above the Fold

Washington Dives Deeper Into Cryptocurrency

President Biden signed an executive order for several agencies across the government to both study the risks of cryptocurrency and further explore and formally consider the creation of a U.S. digital currency (the Trump administration and Federal Reserve had already begun research on the latter). The order specifically requests the Justice Department to study whether a digital currency would need congressional approval. 

The Russo-Ukrainian War has helped thrust the quickly growing cryptocurrency market into the focus for a broader swath of Americans (and regulators apparently) as questions around sanctions and crypto’s role in their efficacy come to bear. According to one senior administration official, the new order will also scrutinize effects of cryptocurrencies on anti-money laundering efforts and what impacts energy-intensive crypto mining may have on climate. The order will also direct the Commerce Department to develop a comprehensive framework “to drive U.S. competitiveness and leadership in, and leveraging of digital asset technologies.” 

But with more than 40 million adult Americans having invested, traded or utilized cryptos in some way, the administration’s latest order truly opens the door for increased regulation. Obviously, we have no idea what these controls might look like, but some investors took the press release in stride. The largest cryptos, Bitcoin and Ethereum, both rallied on the news, which was accidentally leaked by the Treasury Department early yesterday.  

Three Things 

1. Russian Sanctions Are Killing This One Real Estate Market – London’s ultra-high-end property market has been dominated by Russian oligarchs and “new rich” families for the last 20 years. Russians have had such an impact, that locals dubbed the city Londongrad. But after the Russian invasion of Ukraine, lawmakers are now telling rich Russians they are no longer welcome. The new sanctions and laws are likely to put pressure on prices, and it’s estimated that around $9 billion has been invested in U.K. property since 2016 from suspect sources.
2. Google’s Latest Deal Ups Cybersecurity Offerings – Google just announced the purchase of cybersecurity company Mandiant for nearly $5.4 billion. The deal will be the second largest for the search giant and should help bolster the cybersecurity capabilities and offerings of Google’s fast-growing cloud business. Mandiant (formerly owned by FireEye Inc.) is a cybersecurity pioneer and well-respected firm in the sector.
3. How the “Tinder Swindler” is Changing Digital Dating (For the Better) – Netflix’s popular documentary revealed the darkside of online dating, but a major player in the space is taking steps to make digital romance safer. Match Group Inc.’s Tinder is rolling out a tool to allow users to run a background check on their prospective date. While the technology isn’t foolproof, it is another step in the right direction to increase safety on the platform. Match Group Inc. has been developing the tool for a year after it announced an investment in the nonprofit background check organization Garbo Technology Corp.

Did You Know? 

It’s Impossible to Ban Crypto

Regulating and taxing transactions in cryptocurrency may be at least partially attainable by certain governments, particularly if a consumer wishes to convert a digital asset into a fiat currency. But even though many countries have discussed the all-out ban of crypto, it’s theoretically impossible, as anyone can get a crypto wallet and/or purchase crypto (if they can find someone willing to sell). Cryptos are here to stay; and while some countries can remove the rights around their usage, they cannot be completely banned.