Blockchain firm Bloq co-founder Matthew Rozek believes the current Bitcoin rally can be hampered by regulatory uncertainty in the United States. His sentiments come as Bitcoin opened 2021 with a new all-time high price building from last year’s bull run.
By the time of writing, the asset was trading at $29,608 from data provided by Finviz. Rozek states that unless there is a defined framework, the regulatory dynamics could affect the digital currency’s rise.
He calls on US regulators to develop a national strategy and support the technology collectively. Rozek adds that a defined regulatory framework will keep the US competitive in the cryptocurrency sector.
“Let’s build a prescription for the CFTC, SEC, IRS, and Treasury. This is more about a national strategy for the US and the US needs to get behind this technology and get behind this system in order to be competitive. And you’re seeing geographies like China, Singapore, Switzerland having much clearer regulatory frameworks for the adoption of this new technology. So I think that will continue to be a footnote to the Bitcoin story until that gets clarified,” said Rozek.
In the US, Bitcoin’s exact status has been controversial, with stakeholders torn between a commodity or a currency. However, Rozek believes it an advanced form of money, and it fits as a perfect store of value. He states that Bitcoin is a competitive store of value to Gold.
Bitcoin market cap surpasses $500 billion
The sentiments come as Bitcoin’s impressive run from 2020 continued with the asset also recording $547 billion in market capitalization by the time of writing. Bitcoin is currently close to hitting the $30,000 mark.
The surge in Bitcoin’s price is mainly due to activities from institutional investors that increased towards Q4 2020.
Bloq is a blockchain company that delivers a suite of multi-blockchain infrastructure services like Nodes and APIs. The services help businesses to grow as blockchain technology advances.
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