Biden’s New AI Executive Order Raises Concerns in Crypto Industry

Implications for Bitcoin, Crypto, and Tech Industry Executives

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According to Forbes, President Joe Biden is set to introduce a comprehensive executive order on artificial intelligence (AI), marking a significant development that has caught the attention of the tech industry and, notably, the crypto sector.

The order, designed to streamline AI usage and promote skilled AI workers, is sparking concerns about its potential impact on cryptocurrency, particularly bitcoin mining and AI model operations.

AI Assessment Requirements for Federal Workers

One of the key provisions in the executive order requires a thorough assessment of AI models before federal workers can utilize them.

While this move is intended to ensure the responsible use of AI within government agencies, it has implications for various industries, including the crypto sector.

Bitcoin Mining Under Scrutiny

Notably, there are growing concerns within the crypto industry that the order may categorize computing power as a national resource, potentially affecting bitcoin mining operations.

The United States has become a home to a significant number of bitcoin miners, and the energy-intensive nature of bitcoin mining is well-known. This sector is particularly susceptible to any changes in regulations.

Operation Choke Point 2.0 and its Implications

In recent times, the traditional financial services sector has distanced itself from the crypto market. Some stakeholders in the crypto industry suspect that this pullback is influenced by government and regulatory bodies.

This phenomenon has been likened to Operation Choke Point, a 2013 initiative aimed at discouraging banks from collaborating with high-risk businesses.

Operation Choke Point 2.0 is perceived as a move to discourage banks from engaging with the crypto industry, a development that could potentially impede the industry’s growth and development.

Crypto Market on Edge

The crypto market is currently on edge, awaiting the potential impact of this executive order.

The recent surge in bitcoin’s price, driven by the anticipation of BlackRock’s bitcoin spot ETF application, has positively affected other cryptocurrencies like Ethereum and XRP.

However, the industry remains cautious, as the unveiling of the AI executive order coincides with preparations for a significant event in the crypto world, the historical halving of bitcoin.

While the AI executive order has noble intentions of regulating AI use and boosting the tech industry’s workforce, its implications on the crypto sector are a source of concern.

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