Cryptocurrency market update: CFTC chair- “cryptocurrencies are here to stay,” Bitcoin dancing with $6,545

Regulation is a sensitive matter in the cryptocurrency space. However, most crypto enthusiasts believe that healthy regulatory frameworks are key to the success of virtual currencies. For example, some of the world’s largest cryptocurrency exchanges are based in jurisdictions that have good regulatory structures. Take, for instance, Binance in Malta, Coinbase in the United States and Bithumb in South Korea.

All these regions have authorities that have been tasked with ensuring that digital currencies and related businesses operate within the law. However, I will be lying if I said that regulations in the above-mentioned regions are holistic. The Commodity Futures Trading Commission and the Security and Exchange Commission still grapple with the formation of regulations for the industry.  

For this reason, one of the most influential members of the CFTC outlined his intentions when it comes to cryptocurrencies. He believes that there are certain aspects that regulators, himself included must address going forward. Mr. Chris Giancarlo, the current chair of United States CFTC while on CNBC’s Fast Money segment said that his regulatory organization is focused on eliminating fraud and manipulation in the crypto industry. He explained:

“We’re very focused on the fraud and manipulation aspects of cryptocurrency markets right now. In fact, last week, we just won a big victory in Boston federal courts that certifies our authority to prosecute fraud and manipulation in the crypto space and we’ve been very active at it.”

Giancarlo continued by saying that are “areas of innovation” in the crypto world that would do extremely well under a “thoughtful and intelligent approach,” especially by the regulatory bodies in the U.S. The CFTC has its focus on institutional investors while the SEC works to protect the retail investor. While the SEC and the CFTC have been called out for stifling innovations in the industry, said that both of this bodies have over 30 years of experience. However, they are doing their best to repurpose the experience for a new technology that was not there before.

Before finishing his interview, the chair shared his predictions for the cryptocurrency market saying:

“I think that cryptocurrencies are here to stay. I think that there is a future for them. [But] I am not sure if they will ever come to rival the dollar or other hard currencies, but there is a whole section of the world that is hungry for functioning currencies, [like Bitcoin].”

Bitcoin price technical picture

Bitcoin price has broken below the short-term support at $6,550. The upside correction from Monday lows was capped marginally below $6,600. Both the moving averages (50SMA and 100SMA) are limiting gains at $6,577. The current trend is bearish and BTC/USD could be headed for the next support target at $6,500. Moreover, other support areas include $6,450, $6,400 and $6,200.

More on Bitcoin price analysis here.

BTC/USD hourly chart