The American Quest For A New Cryptocurrency Accord

<p>The listing of a bitcoin exchange-traded fund and the legalisation of bitcoin in El Salvador have marked watershed moments in an asset class that US regulators are still unsure how to regulate.</p> <p>On Tuesday, 19 October 2021, the New York Stock Exchange began trading the first bitcoin-linked exchange traded fund (ETF). It was a watershed moment for the cryptocurrency industry, coming eight years after the first application for a cryptocurrency ETF was filed. Rather than directly investing in bitcoin, the ProShares ETF provides investors with exposure to bitcoin futures contracts. </p> <p>While the start of trading in BITO is undoubtedly a watershed moment, the events surrounding its application and approval also provide a snapshot of the current and frequently contradictory perspectives at play in the US, as national authorities in the world's largest economy seek to shift towards a more coherent and cohesive policy regarding cryptocurrency and blockchain activity. </p> <p>The Upheaval Surrounding El Salvador's Historic First </p> <p>Not in Washington DC, New York, or Silicon Valley – but in a Central American country with a population of less than 7 million – is a stark illustration of the difficult dynamics that US officials are currently grappling with. On 7 September 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender. While it was a historic day, it was not without controversy. </p> <p>After midnight, President Nayib Bukele criticised Apple and Huawei for not making Chivo – the official app Salvadorans can use to conduct crypto transactions available. Following this, the app was forced to go offline for a period of time due to the strain of user registrations. Bitcoin's price also plummeted during the day, falling from US$52,000 to just under US$43,000 at one point. </p> <p>Without a doubt, there is another side to this Salvadoran pioneering. Although Chivo's launch was undoubtedly bumpy, it eventually gained widespread adoption, eventually rising to the top