Virginia passes new crypto law as macro headwinds mount

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Marcus Sotiriou, analyst to UK-based digital asset broker Global block

Bitcoin (CRYPTO:BTC) hit a lower daily low last week as it failed to hold above the key $44,600 level, with many analysts calling for lower prices as macro headwinds build. Downside risks involve the war in Ukraine, persistent consumer goods inflation and supply chain issues, renewed inflation from soaring oil prices, and the Federal Reserve’s response to combat this. inflation. Many predict a global recession is on the horizon if the Federal Reserve decides to hike rates aggressively from March 16, although the board has become more dovish since the war broke out.

Regulatory outlook for the United States

Despite these short-term risks to macro conditions, the long-term outlook for the crypto market remains very optimistic and is getting stronger by the day. Regulation in the United States continues to advance, albeit at a slow pace. The Virginia Senate has approved a request for a bill amendment that will allow traditional banks in Virginia to provide crypto custodial services. This bill was passed unanimously by the Senate with a staggering 39-0 vote.

Additionally, Wyoming recently introduced legislation for a state-issued stablecoin. Additionally, Canadian businessman Kevin O’Leary revealed that some US lawmakers are working on a policy to open up crypto markets to institutional investors. O’Leary said: “The good news is that they are everywhere and agree there is a tremendous opportunity once they embrace the policy.” He also said, “In the indexing industry, despite all the hype surrounding bitcoin, none of these institutions own a single coin. And they won’t until their compliance departments clear ESG mandates.

I think the introduction of regulatory clarity in the US, even if it hinders innovation at first, will trigger the next wave of money to enter the crypto markets. This is how a price of $100,000 to $500,000 for Bitcoin is achievable over the next 5 years.

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