Does the market breathe? Cryptocurrency reacts to the remarks in the American Senate

Does the market breathe? Cryptocurrency reacts to the remarks in the American Senate

Bitcoin talk: “Bulls.” “The market breathes lightly.”

These were just some of the comments that came from industry observers after the American Senate Banking Committee Tuesday hearings. It was discussed how crypto regulations should be addressed.

Bitcoin Discussions – The discussions were awaited. Following one of the biggest price explosions in the industry, the CFTC and SEC have publicly discussed several topics, including market surveillance, price volatility, and regulations around ICAO .

The sophisticated and retained nature of the dialogue emerged during the sessions.

Stephen Palley, a lawyer at Anderson Kill in Washington, was impressed with the level of knowledge of committee members and regulators about a very exclusive theme – cryptocurrency.

“It’s amazing that nine years after the publication of Satoshi’s white paper you see the senators discussing it without mud,” Palley said.

Lawyer Zoe Dolan had an optimistic tone after the hearings. He wrote on Twitter that the hearing made him so optimistic that he barely had any patience.

“As a lawyer – and in particular as a defense lawyer – I was encouraged to hear a recognition that the laws now being implemented are enough to resolve some old behavior since the world,” he said in an interview and added, “Fraud is fraud “.

Andrew Hinkes, a partner at Berger Singerman, also pointed out that both agencies have recognized that more resources are needed to keep an eye on a growing industry.

“Though this might spread fears in the community, more resources could lead to better, better-thought-out regulations and make things easier. Regulations help when I come with helpful guides, “he said.

Does it require more clarity?

Beyond the optimistic tone, some market observers said they are confident that the hearings have revealed more clarifications on the front of the regulations. It is a matter that both agency representatives have said should be resolved by actions from the American Congress.

Carol van Cleef, a veteran bank attorney in Washington, says Clayton’s main idea was “the need for clearer legal codes.” Although Clayton said the SEC would coordinate with the CFTC and the federal reserve, “he spoke a lot about the petition system,” says van Cleef. “He did not say this directly, but he said it was not enough to regulate the field.”

The subtext, according to her, is that “someone has to take control at federal level.”

This will be problematic for businesses, such as bitcoin exchanges, which have spent several years building compliance programs on the idea of ​​registering businesses that provide financial services and are registered with FinCEN.

“I did not seem to have talked enough today about this type of initiative,” said van Cleef.

An overview

Others who have listened to Tuesday’s hearings say we have another reason to celebrate. And those who write laws and regulators seem to agree that digital coins do not go anywhere, regardless of the risks.

And Giancarlo and Clayton talked about the possible utilities of the technology. The CFTC Director received a point of sympathy from the community for one of the comments he made. “If it were not bitcoin, there would be no distribution registry technology.”

The same thing was told by other senators who participated in the event.

Coin Center executive director Jerry Brito said at the hearings:

Senators and authorities are certainly worried about fraud and volatile markets. However, it is clear from today’s hearings that I understand, as Senator Warner suggested, that it is technology just as revolutionary as mobile telephony.

According to Palley, the conclusions would ultimately be that politicians “need to understand technology” and be willing to create “responsible rules and rules.”

What’s next

One of the obvious questions after the hearings is what the congress and the authorities are going to do.

Clayton said the agencies could work with teams of judiciary specialists to create more sophisticated surveillance tools. The congress could theoretically make the first steps without help from outside. Van Cleef said he was amazed at how Clayton “made it clear that lawyers, supervisors and accountants are under the SEC’s jurisdiction.”

That made her believe that she is already working on a legal framework with such professionals.

Clayton made statements about the relationship between federal and state authorities and said they were “made from petitions.” So it is possible to take some initiatives in this direction.

Perianne Boring from the Chamber of Commerce said it was a positive sign.

“We encourage the SEC and the CFTC to work with others and to resolve the issue of disparate regulations that discourage growth and the right of customers to choose, and to provide America with a stronghold to maintain leadership in technological innovation,” she said.

In the future, as Palley has suggested, both agencies will strive to eliminate the crime in the field.

“If you’re innovative and you’re not afraid of the law, that’s a good thing. If you have an ICO of $ 200 million and you do not respect the law, now you have to be a little worried, “Palley said.

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