As Bitcoin surges, the U.S. government says crypto tokens are useless



Bitcoin has risen to more than $28,000.

Some altcoins have followed in Bitcoin’s wake by surging in price and making traders second guess their bear market strategies.

As the crypto Fear & Greed Index turns from fear to greed, the U.S. government claims digital assets aren’t a priority in the financial sector.

U.S. government says digital tokens are useless while Bitcoin turns green

The total value of the cryptocurrency market is back over $1 trillion this week with Bitcoin reaching $28,000. For the last 10 days, Bitcoin has been on a surge from lows of $20,000.

Altcoins are also on the rise with Stellar (XLM) XRP and Cardano (ADA) up over the last 7 days. XRP in particular is up 23.7% this week after a period of low fluctuations and uncertainty.

The crypto Fear & Greed Index recently turned to greed, indicating that the market is becoming euphoric and thirsty for gains. For the last few months, the market has been mostly afraid and cautious, but Bitcoin's climb has awakened most traders and left investors wondering if the bear market may be coming to an end.

Despite the positive growth, according to the U.S. government “crypto assets to date do not appear to offer investments with any fundamental value.” According to a recent economic report, the majority of U.S. congress believes digital tokens such as cryptocurrencies are not effective alternatives to fiat money.

U.S. Congress:

crypto assets to date do not appear to offer investments with any fundamental value, nor do they act as an effective alternative to fiat money, improve financial inclusion, or make payments more efficient
Though DeFi applications claim to help broaden access to credit by decreasing intermediation fees, they create serious risks to investors and cause at least two risks for the broader financial system

The statements may also support the SEC’s tough attitude on crypto staking services and stablecoins. Earlier this year, the SEC forced crypto exchange Kraken to shut down their retail staking services for U.S. customers.

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