There are reports that US President Joe Biden is about to issue an Executive Order (EO) that will focus on the regulation of artificial intelligence (AI). Parts of this issuance will allegedly have an impact on the crypto community, especially on the subject of Bitcoin mining.
New EO by US President Joe Biden May Impact Both AI and Crypto
According to Forbes and other sources, the upcoming EO on October 30 will touch on matters related to the regulation of AI. There are also suggestions that the contents of the order may cover cryptocurrencies.
Concerns began to surface within the cryptocurrency industry when preliminary reports hinted that the EO could classify computing power as a “national resource.” Such a designation would have widespread implications, potentially forcing cloud computing providers like Microsoft, Google, and Amazon to disclose specific activities exceeding certain computing thresholds. This disclosure might extend to areas, too, such as Bitcoin mining, video game development, and AI model execution.
Experts in the field have raised alarms about the potential consequences of this classification. They warn that such a move could bear similarities to “Operation Choke Point” for computing power. Bitcoin mining, for example, might be regarded as draining power resources, and the cryptocurrency sector could be seen as diverting development talent from more traditional applications.
One of the cryptocurrency industry’s most notable features is its energy consumption, particularly in the case of Bitcoin. The network relies on miners who validate transactions using high-powered computers, and this process consumes more electricity annually than in some small countries. It’s important to note that this energy usage has drawn significant attention, particularly since China’s ban on Bitcoin mining in 2021.
The Shadow of “Operation Choke Point 2.0”
Recently, there has been a conspiracy theory going around that attempts to explain the reason why some traditional financial institutions are reluctant to fully adopt cryptocurrencies. The sources of these allege that the US government may have a hand in their hesitance due to “Operation Choke Point 2.0.”
Like the preceding “Operation Choke Point” back in 2013 that discouraged banks from working with high-risk entities, the new version of it is allegedly tailored to trim and/or dissuade financial institutions from embracing cryptocurrencies in their business models.
The cryptocurrency market’s anxieties regarding the AI-focused executive order of President Joe Biden are centered on the need for clarity. The crypto community is eager to learn whether and how this order will affect their activities, from mining operations to AI development.
Until the executive order is officially revealed this Monday and its content fully disclosed, the market remains in a state of anticipation, with stakeholders poised to react to the specifics as they emerge.