www.cointelegraph.com
The Senate hearing that took place went incredibly well for cryptocurrencies.
While the news reports about it are mixed, to me, they are looking at things the wrong way.
We need to understand, the Senators nor the regulators were not going to come out and openly embrace Bitcoin nor any other cryptocurrency. They were not going to openly announce that these things are wonderful and that it is their job to do everything in their power to make sure they succeed.
Anyone who thought support was coming from the hacks in Washington is sadly mistaken.
The reason why this was an incredible win was simply because they did not oppose cryptocurrency. From what I can gather, never was the word "ban" mentioned which would have sent prices plummeting. As long as the U.S position is to NOT ban cryptocurrencies, all is well. Even though I do not even believe it remotely possible, the U.S. government could have hindered progress if that is the position it took.
It is true the Chair for the SEC wasn't exactly glowing about cryptos. That is no surprise. It also makes sense that he would focus upon the ICO market and want to call everything a security. After many of the antics pulled in the ICO market, this is the one place we are going to have to live with a great deal of oversight. This made headlines, hence is on the radar of the regulators.
“I believe every ICO I’ve seen is a security… You can call it a coin but if it functions as a security, it is a security…,” Clayton said. “Those who engage in semantic gymnastics or elaborate re-structuring exercises in an effort to avoid having a coin be a security are squarely in the crosshairs of our enforcement provision.”
The Chair of the CFTC was more optimistic which also comes as no surprise. Many believe the futures market is the ultimate "truth" teller since people can both long and short. They feel no price action is true without people being able to short. Then you have a true market.
For Bitcoin, at least, that market exists. Hence I can see the CFTC taking the stance that they are establishing the "true value" for this asset. It also carries the belief that any gaming of the system will be shown here.
“The CFTC can now obtain trading data and analyze it for fraud and manipulation,” Giancarlo said.
“…With Bitcoin futures we’re now having visibility into underlying markets and spot markets that we would not otherwise have.”
What this all means is that, for now, nothing is going to happen. Senator Warner wants more coordination among the regulatory bodies. To me, this means we are going to see a pissing contest for a while which is a good thing. Let the Feds play their games while the industry forges ahead.
Ultimately, there will be more regulation coming. Hopefully, the snail's pace of Washington gives the industry time to grow to the point where it cannot be pushed around. As more money enters this arena, the players get bigger. This means there will be some big entities seeking to get in. Warner, showing who is padding his pockets, mentioned the fact that regulators didn't approve ETF (which would allow institutions to get into crypto) while allows futures to take place.
For full write up about the hearing:
https://techcrunch.com/2018/02/06/virtual-currencies-oversight-hearing-sec-cftc-bitcoin/
In general, I believe the blockchain/cryptocurrency horse is already out of the barn. There is no way for the governments of the world to stop it. However, while still in its infancy, these entities could really hinder progress. For that reason, the fact that the U.S Government, for the moment, decided to stand down, is great news. To me, this was as good as we were going to get.
One other point I want to make: Cryptocurrencies greatest ally is the banksters.
Huh?
Yes you read that properly.
At present, the institutional money (read bankster) is mostly prohibited from the crypto world. While we are in this downturn, the attractiveness of cryptos dwindled. However, when things start to move upward again, which they will, the banksters phones will start ringing off the hook. And do you know what they are missing out on? Trading commissions.
Therefore, I believe the greed of the banksters will be the greatest ally for cryptos. They are going to get into this arena at some point. Senator Warner, who I am sure is paid by the banksters, is already showing their hand. They want in. As the trading action heats up, outfits like Vanguard, T Rowe Price, and TDAmeritrade want their cut.
Blockchain and crypto will eventually destroy most of the banksters. However, that is down the road. Trading commission helps this quarter's numbers which is what Wall Street is most concerned about. Even though they are threatened by it, massive trading fees outweigh any long-term problems. They operate on 90 day cycles to the exclusion of almost everything else.
So relax, take a breath, and watch the crypto world explode once again. In spite of the price action, the blockchain are progressing along at a rapid pace.
https://steemit.com/cryptocurrency/@cryptovestor/why-u-s-restrictions-on-icos-and-exchanges-is-likely
Seems like this guy has a different opinion on it.
My opinion is the recent crypto draw down was created by bankers to get in on the game. When Goldman and JP Morgan openly discussing trading cryptocurrency to me it mean they are already in the game and trying to get a bigger strangle hold on the crypto market. Those bitcoin contracts were that far ago introduced either. Believers of crypto just have to stand strong and not sell at the lows but hold. Thanks.
I believe one of the best takeaways from this meeting was the fact that they were all mostly for non-shitcoins, and highly opposed to shitcoins such as BitConnectesque style lending platforms, which could only serve to clean up our beloved cryptocurrency space.
They basically understand crypto is here to stay and they just need to make sure the average American knows exactly what they are getting into. But there are some negative, they are classifying ICOs as SECURITIES. Which means, the ICO game might not last very long. But all in all, very positive news for cryptocurrency. It's here to stay and make the world a better place via blockchains and smartcontracts.So much good healthy discussion out of this hearing. Some negatives that needed to be hit on and a lot of good points. I am so happy with the outcome, having a man like Gaincarlo on the front line is a positive.
Well the US regulations do not extend world wide so if they do indeed have ICOs as securities, they will move off shore removing the American buyer.
Of course, decentralized exchanges can work around that.
Yes, this meeting could have been so much worse for the crypto space, but the impression I got is that there are an awful lot of people, at the highest levels who don't have a clue what it actually is, how it works, and the disruptive power it's already showing.
There are obviously a few who do understand blockchain tech, it's current and potential applications. But wait until a blockchain business takes down an established player in a major industry - and they're not regulating it. Then they'll pay attention.
For the moment, the regulators are being kept at bay because they've not figured out what they're dealing with. And the ones who do know...are probably profiting from it.
If the market is starting to recover, I don't think it'll go straight back up. There'll be some wild swings, and with the greater awareness of cryptos now, some big money could arrive to take the profits of the next wave upwards.
That is true for most of these hearings. The politicians tend to not to have any idea about what is going on...I noticed this when they interview the Fed Chair...some of the question show they are totally ignorant.
Most just want to grandstand.
Indeed this is just the break that we need to rally for a second wind and come out swinging for a comeback.
The block chain is going to change the world and people are alrwady seeing a lot of use and integration into different systems.
The banksters can only hinder it for a few more years but indeed their greed will be the catalyst once it picks up again as they would see millions in dollars that they can amass wealth then they'll incognito support it while publicly denouncing it like what JP Morgan did last year.
I am not sure their greed can be tempered for a few more years. There are already rumblings from some of them that they cannot get into the crypto game. During the next bull run, when clients are calling on the phone, and these institutions are losing out on trading money, they will be climbing the wall.
Then their tune will change.
Missed the Senate hearing altogether. Are they still pushing through the Orwellian Senate Bill 1241, or is there hope for something that doesn’t equate crypto with terrorism?
I think that is still being pushed by some Senators.
I am not sure how it stands....yesterday's hearing had to do with the regulators...nothing about the bills the Senate might be taking up.
It did seem rather promising, while the SEC thinks it needs to be regulated what they fail to realize is the really big question that came from one of the senators at time stamp 1:15 asking well who pays for the trials when the SEC shuts down a program.
Well the answer the tax payers the investors etc. not that so its just a big pit fall of money where they should have just left it alone instead of making everyone lose money and the SEC and their workers gaining it all through salary. I've seen this happen time and time again in the marketing world the SEC to me is just pure crap anymore and instead of building confidence for investors to me instead sparks fear and anger towards them. The exact opposite the brand was founded for!
What do you really think of them. LOL
lol, I get emotional some times :P
In this instance, I think it is well placed emotion....
Their track record speaks for itself......
i really hope DEX like BTS and other big players like Binance would do well and get established. We can't let the bankers have a big marketshare. Most of the young generation wouldn't be using banks to but cryptocurrency.
I agree with that. Not sure how long it will take so the more time that the crypto world is allocated, the better.
Over time, we are going to see blockchain penetrate every aspect of society. It will be not be noticeable at first until, suddenly, it appears the spigot is turned on. DEX will certainly be a part of it I believe.
What happened should be an absolute signal to the world that in the United States, cryptocurriencies will find a legitimate, legal and regulated market to operate in. America is once again open for business. Besides cryptocurrencies will absolutely save America from hyper-inflation!!!!! All those dollars sloshing around in the world will be poured into cryptos, that will actually serve in growing the economy.
All you say it true @handofzara. The one group that is left out of that is the banksters...and they arent willingly going to allow that to happen.
They will fight at every turn to make sure it doesnt happen.
In the end, I think it is a fruitless fight...kind of like the newspapers trying to stop the Internet...it didnt happen and many went under.
It will be the same thing here...the banks that adapt have a chance of surviving...those that do not, will perish.
The banking institutions have little control over self contained communities utilizing crypto-currencies. Here on steemit real goods and services are being exchanged for STEEM. Not just resteem services etc. But actual sales of goods and services are being exchanged. If I want to buy an ounce of silver, I can do it right here on steemit with steem! If I want to hire a graphic designer for my website I can do that and pay in steem. At least at present we are beyond their grasp. One of the great quotes from the written testimony was that the technology genie was out of the bottle and could not be put back in. Also, the blockchain technology itself open source instant ledger is the Achilles heal of the banks and they are scared. Remember the mortgage crisis because of all the bundling of assets, no one really knew who owned what mortgages? Imagine if each note had been registered on an open source instant ledger (i.e. blockchain). No confusion, but then again how many banks in the fractional reserve system were counting the same mortgage note as an asset? No this is about to get real interesting, blockchain technology will expose everything especially who owns what. Consider yesterday's testimony as putting a choke collar on the banks.
They know the Crypto genie is out of the bag, can't be out back. Governments should, rather than fight it, embrace it and get there first. Look what's happening in Japan, crypto is bringing in lots of the high tech jobs, the best minds in Asia, entrepreneurs, even Roger Ver, well scratch that one haha. In short, Countries than become hostile like China have a lot to lose in this race for the future, they will just be left behind eating dust.
i think this is a news of relief, atleast we know that bitcoin is going nowhere but here to stay.
this is for sure...those greedy fellows will go down.
Thanks for sharing this information keep it up
We will see crypto currency will goes up soon
its time to hold it
Thanks
Blessing
thanks for the well written article! it was a good news.
thanks for share this news
Thanks for share information about cryptocurrency. Keep sharing. Best of luck for future.
I liked of Mark’s speak. He is a senator who knows about the issue and believe in blockchain technology.
This very nice post i appreciate your post thanks for sharing this crytocurrency news best of luck..
Thank you for these great news you keep us updated thanks. #resteem.
this is such good news for crypto! the fact that the USA are talking about crypto in such a positive manner id really nice!
thanks for the well written article!
Thanks dear discuss about the cyptocurranec. News..At current time this rate very low. All steemer upset
Great post! Thanks for your time to keep us in the light. Thumbs up, mate.
I agree. Just the fact that they did not come out and say cryptos are the devil and we r going to do everything in our power to stop them is a huge victory for the crypto community. I also think this latest down turn in crypto price was just so that the banksters could get into the game at a lower price. Future is looking up for crypto should be a very interesting 2018
well nice post .. i like some of them info
The news we are getting over here is all mixed tp. But all in all, like you mentioned, since the States are not making a direct attack on crypto at the moment it seems much like good news to me. This gives us hope and this gives us time to prepare for whatever side they will want to take in the future.
Let me go have a coffee and try to make one more post today. Thanks @taskmaster4450, you explained it better than most news agencies put it.
What a great news sharing you .
Nice to see that neutral news moved the markets up so much. I was shocked to see BTC above 8K this morning. I was expecting another test of 6K but now I kinda doubt that's gonna happen.
As far as the pace of rule and regulation-making goes, I think a snail's pace is a pretty accurate comparison. Let them ponder it and have their hearings etc while the market surges once again. It's a bit early to call it a new rally but today's price action sure looks promising with coins up anywhere from 10 to 60% from my brief glance at https://coinmarketcap.com/
I love your write up because it was easy to see the key points here and maintain confidence in the down market!
i know you have a lot of idea about it.
very nice work sir ,go ahead.
Thank you for the news. I am very glad that the US government will not prohibit crypto-currencies. I believe that this will be an excellent reason for the growth of the price for crypto-currencies.
I saw the hearings as a win simply because nothing really changed. Both the SEC and CFTC heads basically repeated what had already been said. I did find it interesting that there wasn't more talk about regulation, and both groups seemed hesitant - citing a lack of resources. Perhaps that was just a way to entice the Senate to give them more resources though. I'm sure there was some politicking going on as an undercurrent to the meeting.
All-in-all a very good result though. As long as the U.S. regulators and gov't remain cautiously accepting of crypto we should see prices continue moving higher.
Its a games of cat and mouse who knows which it will go great post thanks I just followed you great if you follow me as well Thanks
Cryptocurrencys is turning out to be the rare industry where regulation is welcomed rather than opposed, in my opinion cryptocurrency markets will soon be regulated similarly to traditional financial markets.
I'm glad you explain what happened clearly because I don't have the patience to watch these old corrupt bastards trying to show their power.
All I can tell you, taskmaster, is I haven’t sold any of my crypto since it fell!
Great news indeed. These guys can't even get out of their own way. The less they speak about cryptos, the better.
Great info Task, thanks for sharing. 😎
I don’t think anybody wants the government to “save crypto.” But everyone knew the government was going to take a stance and people are glad that the stance is not of heavy handed regulation. Doesn’t seem like a tide change to me, it seems like people are facing the reality that the government was going to regulate eventually, but are glad to see they have a positive government stance on crypto. As opposed to a stance of “cryptos are just for crime and drug dealing and terrorism and must be regulated heavily.”
This is awesome news, thanks for the great overview!
It's obvious the banksters are going to be jumping in here soon. They've been blocking credit cards and telling everyone it's too high risk, and most of the time they do just the opposite of what they advise because they suck.
We are in a good looking position moving forward, we've dealt with a lot of the scams and made it through talks about regulation in multiple countries. Skies the limit.
I have to say @taskmaster4450 that your analysis and commentary and the way you structured the story made this news story much much more interesting and exciting than any other place I read about it.
Just awesome.
I wish I would have figured out the Senate hearing would be the bottom ahead of time.
Thank you so much for this breather. It is an inhalation of fresh air, at least the FEDS are not against cryptos.
Thanks for sharing.
Even my country is poke-nosing into cryptos too, because they have become all too uncomfortable with it. But there's no stopping this eruptic trend of cryptos, they can only scratch on the surface, at the most.
Nice to meet you. I first started to get into steemit. I'll follow you. Thank you for a good article.