Tomorrow, Tuesday 6th could be a pivotal date in the history of cryptocurrencies and cryptoassets. Why? Because tomorrow the Senate Committee on Banking, Housing, and Urban Affairs are meeting to discuss the regulations over cryptocurrencies. The heads of the Commodity Futures Trading Commission (CFTC) and U.S. Securities and Exchange Commission (SEC) will testify on the cryptocurrencies during this hearing.
The Senate banking committee meeting with the chief of US SEC and CFTC where they will appear as witnesses will talk about their roles to oversight cryptocurrencies.
US SEC Chairman Jay Clayton wrote:
“As I have stated previously, these market participants should treat payments and other transactions made in cryptocurrency as if cash were being handed from one party to the other.”
On February 6, the Senate Banking Committee will be held and broadcast live online. SEC’s chief Jay Clayton and CFTC’s chief J. Christopher Giancarlo will testify in the hearing.
After India, South Korea, and China, it’s US’s time to be clear about cryptos
CFTC chief J. Christopher Giancarlo and the SEC chief Jay Clayton will appear as witnesses, to talk about the oversight roles played by both of these Commissions on cryptocurrencies. You can read their pre-written testimonies using the links below. They both hold generally positive opinions to the blockchain technology and the cryptocurrency market.
The hearing is entitled “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission.”
There has been a number of lawsuits filed by SEC against allegedly fraudulent ICOs. CFTC is also scrutinizing the activities of Bitfinex and Tether among other cryptocurrency exchanges.
The US Senate Committee will be meeting both SEC and CFTC to discuss the regulations. This will give a regulatory structure to the larger financial institutions to invest in the cryptos.
More Regulations or Green Light for Cryptocurrency Investors in USA?
Some cryptocurrency commentators believe these regulations to be positive as control could help in decreasing the volatility while others think these regulations will block the innovation of crypto industry and would rather support creating own virtual currencies.
For me this is probably the most significant part of SEC Chairman Clayton's excellent testimony. Not a surprise given what several reasonable lawyers and scholars have written over the years, but good to hear it from the Chairman. https://t.co/ClYEPsedYz
— Peter Van Valkenburgh (@valkenburgh) February 5, 2018
Recently India’s Finance Minister Arun Jaitley cleared the air around the crypto. Jaitley announced that bitcoin among other cryptocurrencies are not a legal tender and measures will be taken only after the report of experts group on the same.
South Korea has already set out clear regulations and fully legalized the trade in cryptocurrencies but with strict controls.
China is blocking all websites, domestic as well as foreign which offer platforms to cryptocurrency trading and ICOs, although it has been overstated that they have banned bitcoin or cryptocurrencies in general as they are still legal.
In the US, the rules regarding cryptocurrencies are quite vague and this meeting is expected to bring out some clarity. Many governments around the world have made their stance on crypto clear. This could be the opportunity for the US to provide clarity for investors.
The effect of this meeting on the market depends on the clarity it brings, and probably just as importantly how it is presented in the mainstream media. It could either turn out to be very bearish or bullish. Without any clear set of guidelines, institutional investors couldn’t do anything. Hence, a clarity can also give a green signal to the bigger investors to get involved.