There was US Senate hearing today and it has helped to prop the price of bitcoin and other cryptocurrencies. On 6th February the market capitalisation of cryptocoins was down to a low of $275 billion down from a high of $830 billion in January. The price fluctuation has been attributed to fear and uncertainty and doubt (FUD) that has been created by Asian governments such as South Korea, India and China. For instance South Korea has banned anonymous trading. There have also been rumours of complete ban of crypto currencies in China through enforcement of crypto regulations in the country. This has served to create fear among crypto investors resulting in significant fall in price of crypto currencies.
However, today the US Senate hearing on cryptocurrencies has restored confidence in the crypto currencies. Jay Clayton who is the chairman of the Securities and Exchange Commission (SEC), intimated that, “We may be back with our friends from Treasury and the Fed to ask for additional legislation.” He further added that they are working to develop regulations that will be friendly to the adoption of crypto currencies and blockchain technology in the country.
In addition, the chairman of Commodities Futures Trading Commission Christopher Giancario told the US Senate that “We must crack down hard on those who abuse our young enthusiasm for bitcoin and blockchain technology,” he said to the congress. “We owe it to this new generation, to respect their interest in this new technology with a thoughtful regulatory approach,” he explained. He pointed out that his realisation is as a result of talking with his own kids who he noted were no longer interested in the stocks but were very hooked into the cryptocurrencies. He held that with appropriate regulations that would help in weeding out scammers and terrorists, adoption and success of crypto currencies would also lead to the success of USA.
This positive sentiment by the US Senate amid crackdown on exchanges and crypto currencies in Asian countries has helped to boost waning confidence in the crypto currency market. Shortly after the announcement during the US Senate hearing, the value of crypto currencies in the coin market cap increased to $380 billion compared to 280 billion on 6th February 2018.