CFTC, SEC Hit It Out the Park Before Senate Panel; Credited for Bitcoin Price Rise
The price shellacking cryptos have been taking eased Tuesday as top securities and commodities regulators spoke about the benefits, not just disasters, of the space.
During the wee hours of the night Monday through Tuesday morning, Bitcoin did something that would have unsettled many had they been awake. It dipped below $6,000 to about $5,900.
However, as it fell, there was a group of Bitcoin players who were cheering. In fact, these players were nearly cheering for it to fall further because they saw moves lower as buying opportunities.
These voices came from HODLers, which you may know stands for Holding On For Dear Life. These are the people who have vowed to hold on to their Bitcoin positions no matter how far the price falls.
As it turns out, it was a good thing these folks did hold on. By the end of the day Tuesday, New York time, Bitcoin had worked its way up by more than $1,500, and had traded as high as $7,837 before falling slightly to around $7,700 at the time of writing.
So what happened to bring Bitcoin back from the brink of falling to $5,000? Let’s discuss.
Bang up job by CFTC, SEC
The chairs of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission met before members of the Senate Banking, Housing and Urban Affairs Committee Tuesday morning. On hand were Jay Clayton, chair of the SEC, and J. Christopher Giancarlo, chair of the CFTC.
During the discussion, the pair told the panel about how they were gingerly handling the cryptocurrency space not only because of its newness, but also because of the unique opportunities that it presents. They pointed out that while they hadn’t slapped extensive regulations on those operating in the space, they had put in place tools to catch the bad actors, and put an end to any criminal acts they were committing.
Clayton pointed out how the SEC had identified several scam ICOs and halted them. Giancarlo noted how in January alone, his commission put to an end three fraudulent businesses prancing about as legitimate Bitcoin businesses. He jokingly referred to one – My Big Coin – as My Big Con.
Both heads said they would remain diligent in rooting out the bad actors as the crypto space is expected to continue to grow.
Observers quickly pointed out that the pair handled the discussion wonderfully, and that boded extremely well for the space.
One such observer was Brian Kelly, founder and CEO of BKCM LLC, an investment firm focused on digital currencies. About the hearing he said:
“The hearings were a win for cryptos today. It was absolutely a homerun; a green light for the space. [Clayton and Giancarlo) said they don’t want to stifle innovation, but at the same time, they want to make sure people aren’t being defrauded.”
That was extremely important because there has been a significant backlash against Bitcoin and the crypto space in general as of late.
Bad actors are rearing their heads on a seemingly increasing basis, and mainstream investors are running from the space like it’s the plague. Something needed to give, and the fact that the top regulating heads did not join in with the crypto bashing was significant.