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


  • “I think that cryptocurrencies are here to stay. I think that there is a future for them,” CFTC chair Giancarlo.
  • The SEC and the CFTC have been called out for stifling innovations in the industry.

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

 


Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel


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.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin is showing rising correlation with the S&P 500

Bitcoin is showing rising correlation with the S&P 500

Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.

More Bitcoin News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

More Ethereum News
Consensys case against SEC over Ethereum dismissed by Texas court

Consensys case against SEC over Ethereum dismissed by Texas court

Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.

More Cryptocurrencies News
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors. 

More Ripple News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP