In the last 24 hours following a U.S. Senate Cryptocurrency hearing, Bitcoin’s value jumped over 26% at $8,311. Other cryptos followed suit as well with Ethereum currently up 15% along with Ripple and Bitcoin Cash increasing over 10%. Of the top 10 cryptocurrencies listed on Coin Market Cap, NEO saw the most significant increase of 55%. The market’s top 100 cryptocurrencies have all experienced upward trends in the last 24-hour window. This is after Bitcoin hit rock bottom just below $6,000 per coin this week; the lowest its been since November of last year.
Yesterday’s Senate Hearing May Have Been Good for Cryptocurrency
Yesterday’s Senate hearing was a hopeful one for crypto fanatics that, considering the overall appreciation in 24 hours, may be helping to realign themselves back into the market. SEC Chairman Jay Clayton and Christopher Giancarlo of the Commodity Futures Trading Commission discussed the usefulness of cryptocurrency during the hearing but only if necessary regulations were in place. Discussing the three most important elements of these technologies, cryptocurrencies, initial coin offerings (ICOs) and blockchain, both members agreed changes would have to be made for these virtual currencies to exist in the economy.
However, Giancarlo was arguably more intrigued by the potential of cryptocurrencies saying that they are not as volatile “compared to the medium they are supposed to be replacing (i.e., fiat currency).” He went on comparing blockchain technology to the world wide web and that: “‘Do no harm’ was unquestionably the right approach to the development of the Internet. Similarly, I believe that ‘do no harm’ is the right overarching approach for distributed ledger technology…With the proper balance of sound policy, regulatory oversight and private sector innovation, new technologies will allow American markets to evolve in responsible ways and continue to grow our economy and increase prosperity.”
Clayton, on the other hand, was primarily concerned over a lack of regulations and how that could impact not only the investor but the economy as a whole. Clayton said, “I think our Main Street investors look at these virtual currency platforms and assume they are regulated in the same way that a stock is regulated and, as I said, it’s far from that and I think we should address that.”
The Moment Bitcoin Enthusiasts Have Been Waiting For
Isaac Martinez, CEO, and founder of Smart Trader told the Scope Weekly during a phone interview that he believes there’s definitely a correlation between yesterday’s hearing and Bitcoin’s price increase. He said that
crypto investors have been waiting for regulators to institutionalize the practice…to legitimize the asset class.
Martinez felt the hearing had an “anti-fraud tone” intended to protect the best interests of consumers and investors which is sharply different than the attitudes of other world countries seeking to restrict even further. Martinez mentioned this situation reminds him of the early days of Forex Trading where regulators had to step in and enforce a framework to weed out the potential wrongdoings. He agreed with the notion of deceptive platforms at play and said that once the regulations are carried out, “only 3-5 crypto providers will survive.”
Bitcoin & Cryptocurrency is Being Tolerated…For Now
The Senate hearing set the tone for more structured cryptoconomics rather than banning it all together…which is a good thing for enthusiasts and its market. The idea of regulating Bitcoin and related cryptocurrencies is a logical one. However, this technology’s decentralized nature could resist the attempts of financial authorities to buckle down on its activities. Despite Bitcoin’s rebellious history and agencies desperately trying to control it, it seems both parties may have to apply an old saying that remains true to this day: “If you can’t beat ’em, join ’em.”
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