Bitcoin (BTC) and the U.S government hit the news once more. The latest news comes as U.S Congress prepares for a hearing on crypto mining.
The U.S government and cryptos have been both friend and foe in recent years. Late last year, the City of Miami was in the news, with Mayor Suarez announcing plans to pay locals Bitcoin (BTC) dividends. Incentivizing Miami residents, “the city is offering to pay Bitcoin (BTC) dividends to any locals who create a digital wallet”. The Miami mayor is no stranger to the crypto market. In early November, news hit the wires of Mayor Suarez taking a Bitcoin (BTC) pay check. With a reported annual salary of $97,000, that would have given him a 0.13BTC pay check in November.
Sports and cryptos have also embraced in recent years, with a number of high-profile athletes taking crypto as either salaries or as endorsement pay-outs.
With inflationary pressure lingering and with the greater adoption of cryptos, it come as no surprise that others are willing to take the plunge and accept crypto salaries.
Mayor Eric Adams and Bitcoin (BTC)
Overnight, New York City Mayor Eric Adams confirmed that he will take his first 3 pay checks in Bitcoin (BTC). The mayor had previously spoken of his plans to take a crypto pay check before taking office.
Mayor Adams joins the mayors of Miami and Tampa, who had also announced plans to take Bitcoin (BTC) pay checks. Mayor Adams served with the New York City Transit Police and then the New York City Policy Department before retiring at the rank of captain.
U.S Government and Cryptos
It’s not all upbeat news, however, with the SEC and Congress taking a harsher stance on cryptos. In late 2020, the SEC filed an action against Ripple Labs Inc (XRP) and two of its executives. The complaint alleges that the defendants failed to register their offers and sales of XRP or satisfy an exemption from registration. This was deemed to be in violation of the registration and provisions of the federal and securities laws. Just this week, the U.S government and cryptos were back in the news. News hit the wires on Wednesday of a U.S Congress sub-committee preparing a hearing to assess the impact of cryptos and mining on the environment.
The outcome of the SEC case and findings of the sub-committee hearings could end up hitting the pockets of the mayors of Miami, Tampa, and New York City.
Another fall today would make it 6 consecutive days in the red for Bitcoin (BTC), which faces the prospect of a return to sub-$40,000 levels. Bitcoin (BTC) last visited sub-$40,000 back in September of last year.
Looking at today’s moves, Bitcoin (BTC) found strong support at the $41,000 psychological support level. A fall through to sub-$41,000 levels would bring sub-$40,000 into play on the day. A break back through to $43,000 levels, however, would bring $45,000 into play.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.