• Bitcoin price would largely benefit from set rules and regulations; however, support from the government is still weak.
  • The bills floated by Senators both contain imperfections of some nature but have been supported by crypto industry players.
  • According to Bloomberg Intelligence analyst Nathan Dean, both the bills have less than 50% odds of approval.

Bitcoin price, along with that of other cryptocurrencies, has been slow to recover since the July crash. The added lack of clarity from regulatory bodies and the government has been feeding the bearish woes that have dragged BTC to its present trading price. With the possibility of two more crypto regulation bills on the verge of rejection, this is how the future could look for the biggest digital asset in the world.

Read more - US lawmakers reintroduce crypto regulation bill but uphold the SEC’s infamous Howey Test

Bitcoin price may not hike anytime soon

Speaking purely from the regulatory standpoint, no clear set of regulations might be harmful to Bitcoin price. As is, the cryptocurrency has been stuck around $25,000 and $26,000 for the past three weeks, with a spike on August 28 that was washed away in the following 48 hours.

BTC/USD 12-hour chart

BTC/USD 12-hour chart

Without the support of institutions, a rise is difficult, and the large wallet holders might keep away until there is some clarity on whether their participation may or may not backfire.

The state of crypto regulation in the United States has been a matter of discourse for a long time now. The Securities and Exchange Commission presently takes the most actions against crypto service providers. However, over time, other agencies like the Commodity Futures Trading Commission (CFTC) have also stepped in. 

To minimize the confusion, two separate bills - Financial Innovation and Technology for the 21st Century Act and the Responsible Financial Innovation Act of 2023 - have been floated in the US Congress. But by the looks of it, both the bills might be rejected as their odds of passing are below 50%.

The reason in both cases is the lack of Senate support, which might keep them from seeing the light of day. 

Both the bills have shortcomings, too. While the first bill gives more power to the SEC, the second bill would lead to a new process of registration for crypto exchanges. The Responsible Financial Innovation Act of 2023 also would label crypto tokens as “digital commodities”.

These reasons might be key factors in their potential rejection in Congress.

Impact on BTC and other assets

This might result in a longer time for Bitcoin price recovery as bearish developments in the regulatory space translate to trouble for investors. The need for regulation in the past has been emphasized by many, including important industry players.

The market could attract more investors and service providers if there is clarity, as noted in the European Union. Markets in Crypto Asset (MiCA) were widely praised, and their acceptance set a precedent. Unless the United States (one of the biggest crypto markets in the world) follows this precedent, Bitcoin price is vulnerable to facing a delay in recovery, in addition to other factors.

Nevertheless, Nathan Dean, Senior analyst at Bloomberg Intelligence, stated,

"I'm more optimistic about stablecoin legislation passing next year. The major hold-up on non-bank issuers, I think can get resolved and there's a regulatory gap that needs filling. Guessing Feb-June 2024ish. (sic)"

Read more - US House Republicans pass bill to regulate industry framework, SEC, CFTC registration for BTC and Stablecoins


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana network is plagued by failed transactions caused by congestion issues on the blockchain. The recent rise in popularity of Solana-based meme coins has resulted in a massive increase in user activity on the SOL blockchain, which has exacerbated the issue. 

More Solana News

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Pups, a BTC-based meme coin, hit a new all-time high of $84.08 early on Friday. The Ordinals Inscription project, which was launched nearly a year ago, sees gains from anticipation surrounding Bitcoin halving.

More Bitcoin News

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

Ripple sees AMM back in action on the XRPLedger mainnet after amendment on Friday. XRP price tests $0.60 support, price ranges below $0.62 on April 12. Ripple CLO shared the Second Circuit Court of Appeals refusal to reconsider their decision, considered a loss for the SEC. 

More Ripple News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki, author of Rich Dad Poor Dad, is popular for his investment advice and pro-Bitcoin stance on social media platform X. Early on Friday, Kiyosaki shared his thoughts on Bitcoin ETFs and advocated holding the asset directly, instead of a “Wall Street” version. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. While Bitcoin’s long-term outlook remains positive, bouts of volatility could bring prices down ahead of the upcoming halving.

Read full analysis

BTC

ETH

XRP