On the morning of 7 February a protracted market decline finally stopped. The market made a hesitant rebound and for the first time in a long time, solid green lights.
There are several reasons. But the main still that fear investors retreated. News on strict regulation of China’s already troubled not as much as something settled. And market concerns before the discussion of the approach to the cryptocurrency in the highest legislative body in the United States have vanished.
The Chairman of the Commission on securities and exchange Commission (SEC) Jay Clayton and the Chairman of the Commission on trade commodity futures (CFTC) George. Christopher Giancarlo appeared before the Senate Committee on banking, housing and urban development for more than two hours, giving prepared statements and answering questions from regulators. Testimony was submitted earlier, on 5 February.
The Chairman of the Commission on trade commodity futures U.S. (CFTC) and Christopher Giancarlo
John. Christopher Giancarlo, CFTC Chairman, expressed optimism about the future of Blockchain technology, devoting a whole section (VI. The potential benefits of) the many opportunities for financial institutions, charitable organizations, social services, agriculture and logistics to derive from this technology the benefits. Giancarlo seemed very enthusiastic, describing more features of the application of DLT, even compared it to the Internet.
Despite all the optimism, the President continues to believe that the digital currency “will likely require more rigorous regulatory oversight” with regards to “fraud and manipulation”. But in his conclusion he appealed to the SEC and CFTC, urging them to do everything possible to leave room for growth :
“As shown by the development of the Internet, we can’t put the Genie back in the bottle. The virtual currency changed the way we think about payments, traditional financial processes and participation in economic activities. Ignoring these facts will not make them go away, and it would not be a reasonable response from regulators.”
Jay Clayton, Chairman of the SEC, not so raved about cryptocurrency, but he did not deny their significance in the modern financial ecosystem.
The Chairman of the Commission, US securities and exchange Commission (SEC) Jay Clayton
In his testimony, he said the word “ICO”only once, while Clayton mentions that 132 times. A recent study showed that 10% of all proceeds from the ICO was lost due to hacks and fraud, and the fear of Clayton lies in the fact that many uneducated investors lose a lot of money. He even supported a ban on advertising in Facebook ICO:
“I want to acknowledge that recently a platform for social networking restrict users to promote ICO and crypto-currencies on their platforms. I respect such a responsible position.”
Clayton mentioned that he and Giancarlo “has created a strong relationship”. They are willing to work together to develop a reliable regulatory framework. DLT requires the least regulation, and in fact, as the SEC and CTFC seems to encourage those who want to develop it. ICO on the other side are demanding greater regulation and virtual currency — somewhere in the middle, needing to be protected from fraud and market manipulation.
When Senator cotton asked Giancarlo about the value of Bitcoin, Giancarlo replied: “If not Bitcoin, then there would be blockchain”. And Clayton, and Giancarlo know what cryptocurrencies are important for the development of the blockchain. Giancarlo also noted that Bitcoin will never fall to zero. This is due to the fact that its value “associated with mining”.
Traders reacted positively to the results of the meeting, and the markets were characterized by rising prices for cryptocurrencies during the hearing or after its completion.
The first reaction of the market — 24-hour schedules for most major coins finally became green.
Prices of Bitcoin and cardan grew by about one percent, rising to 7 168 $ 0.33 per dollar, respectively.
Meanwhile Ethereum he led the first five with a leap of five per cent to $ 723 dollars, and Ripple gained about two percent.
Cash Bitcoin is the only cryptocurrency of the top 15, whose 24-hour chart remains in red, but the recovery continued and he is also in the green.
Despite the fact that NEO and NEM were not shown in the table above, NEO and NEM took the day eighth and tenth places on the market, respectively. Their price has increased more than 12 percent, showing the best result of all cryptocurrencies.