Since the early days of crypto, people have always feared regulation or outright banning. However, a ban was much more realistic when crypto was well below a $1 Trillion market cap.
However, with each passing hype cycle, the threat of banning subsidies because of how much activity is going on in the ecosystem. Combine that with the fact that politicians are now using crypto as part of their campaign strategy, and the odds of banning are starting to plummet.
That doesn't change that regulation is coming in some form or another.
This was hinted at for months by Gary Gensler's hardball stance in the media to get exchanges to register with the SEC. There have also been reports of Biden preparing an executive order for "national security" sometime in February.
To top it off, Russia is also drafting a bill for crypto regulation on February 11th.
Of course, as native crypto people, we're used to FUD from the government and legacy financial institutions. Could this be another bluff, or will we see some regulatory clarity in February?
We will have to wait and see.
February is shaping up to be a very volatile month, especially as we enter earnings season, battle inflation, and wait and see if Biden is bluffing or not.