One economist is featured in the latest cryptocurrency news because of a recent statement on Trump banning Bitcoin – something that is only a rumor right now but could be a possibility in the future.
According to the economist and trader Alex Krueger and his statement on Twitter on July 15, the US president Donald Trump would cause a Bitcoin (BTC) price crash if he banned it – but the law would likely prevent him.
Trump, who announced his distaste for cryptocurrency last week, initially failed to impact the market sentiment. A subsequent breakdown over the weekend has resulted in Bitcoin going below $10,000. By publishing a dedicated thread on the chances of Trump banning Bitcoin, the economist said that this could theoretically have some success.
1/ Could Trump ban Bitcoin?
Thread 👇 pic.twitter.com/KeDI35GU7C
— Alex Krüger (@krugermacro) July 15, 2019
By targeting the entry and exit points for retail and institutional investors, the president would turn Bitcoin in an isolated, more illiquid asset as it is used by lay consumers, Krueger said. In the coming altcoin news, he also summarized:
“Trump could also go after fiat onramps, by simply forbidding banks to service crypto exchanges, or by requiring banks to not service exchanges unless conditions XYZ are fulfilled (and make that practically impossible).”
In reality, however, Trump would need to convince the Congress of the need to ban Bitcoin and lawmakers could overturn his demands – even if they occurred via an executive order or similar emergency measures. So, Trump banning Bitcoin is feasible at this point – but the probability of it becoming law is extremely low, Krueger concluded.
2/ Bitcoin is code. The US government cannot ban code 👊
(source: https://t.co/3LeQend7BG) pic.twitter.com/NHkkdcNff2
— Alex Krüger (@krugermacro) July 15, 2019
Krueger’s comments went viral on many best cryptocurrency news sites several days after the mainstream media suggested that Trump had inadvertently made Bitcoin a campaign issue for the upcoming 2020 presidential elections.
3/ However, as @billbarhydt points out, the government can target the fiat onramps.
(source: https://t.co/xLEJDU38Pq) pic.twitter.com/dHhyBVtGou
— Alex Krüger (@krugermacro) July 15, 2019
As Forbes also noted, some of the competing hopefuls (among which Andrew Yang) have long held an opposing view which shows that Bitcoin is in fact something to embraced at national policy levels.
Krueger’s comments on Trump banning Bitcoin showed thaT US regulators could arguably determine that crypto assets are too volatile to be sold to retail (non-accredited) investors. In the last tweet, Krueger noted that Trump could issue an executive order banning US people from dealing in Bitcoin – and that he has already done so with the Petro cryptocurrency.
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