US Senate gives cryptocurrencies green light

US Government approves SEC's anti-fraud but pro-cryptocurrency stance during yesterday's hearing
07 February 2018   928

Yesterday's hearing has been a hot topic among the crypto community for the past several days. Everyone feared new laws and regulations being passed to further choke down the market. But fear not, SEC Chairman Jay Clayton spoke in favor of digital currency market and is firmly on the side of progress, it seems.

All the while talking about the crypto world, he separated the topic into three categories:

  • cryptocurrencies themselves, comparing them to fiat currencies, but with their own defining characteristics;

  • blockchain technology as an underlying principle of distributed ledger, which doesn't have to necessarily be associated with digital currencies alone and can be a driving force of progressive development of a more open economy;

  • ICOs, which have a lot in common with a stock offering or commodity trading, so most of the regulatory focus should be put on those to prevent fraud and to protect mainstream investors.

The other prominent figure of the hearing was CFTC Chairman J. Christopher Giancarlo. The opening of his speech holds a lot of promise for the cryptocurrency market, because he openly admitted to recognize not only the growing interest of the younger generation towards Bitcoin and other digital currencies, but also sees its value as a value storage medium. Even the ever-popular term HODL came up in this discussion to further cement the point about the general investors' view of their digital currencies assets.

Both Clayton and Giancarlo made a specific accent on not asking for any more restrictive laws to be passed, but to put more effort into security and fraud prevention, so the general populace wouldn't have to fear about scam while entering the new market.

The Senate agreed on a lot of points with both of them, so for now the markets are out of hot waters, it seems. They even responded with a sudden rise of $83 billion in total capitalizations and ending the yesterday's dip for practically every coin across the board.

SEC May Approve BTC ETF in 2019

This thought was told by Bill Barhydt, chief executive of bitcoin payment start-up Abra
05 September 2018   414

In an interview with CNBC, the head of Abra, Bill Barhydt, said that the SEC had not yet approved the bitcoin-ETF because the initiators of the launch of these funds "do not meet the expectations" of the agency.

I think the issue with the SEC, quite frankly, is that the people who are doing the applications don't fit mold of who the SEC is used to approving. I used to work for Goldman Sachs, but if you look at how I'm dressed you probably wouldn't know it. So I probably, unfortunately, couldn't go like I am here to a meeting at the SEC to say I'm applying for the ability to issue an ETF.

Bill Barhydt

CEO, Abra

According to Barhydt, the applicant must "look, smell and behave" as the SEC wants to approve the application. He also believes that the application for the launch of ETF from a reputable financial company will be approved rather than from a start-up.

He also expressed confidence that the first publicly cryptocurrency ETF will appear next year.

It's going to happen in the next year, I would actually make a bet on it. There is too much demand for it.

Bill Barhydt

CEO, Abra

In late August, the SEC rejected an application for the ProShares Bitcoin ETF and ProShares Short Bitcoin ETF. At the same time, a similar fate awaited several applications for the launch of Bitcoin-ETF from Direxion and GraniteShares.