December 19, 2018
Bitcoin Threatens Comprehensive Regulation in the USA
The Bitcoin is currently only a shadow of its own. In addition to the horror crash of recent days and the likely upcoming trade ban in China threaten the crypto currencies to all abundance now also comprehensive control and regulatory measures in the USA. The prospects for the price development in the near future will continue to be gloomy.
Specifically, recent concerns over a much stricter regulation of Bitcoin and all other cryptocurrencies relate to a hearing by Jay Clayton, Chairman of the United States. Securities and Exchange Commission (SEC) before the Banking Committee of the USA Senate.
The script of the same was already released in advance by the USA Senate for inspection. Here, Clayton states that he is open to exploratory talks on the regulation of crypto-trading platforms at the federal level. If one reads between the lines, one gets the impression that exactly this is now actively pursued.
The possibility that cryptocurrencies like the Bitcoin in the USA are regulated on the federal level indirectly via the trading platforms, has been a nightmare in the scene for weeks. While Bitcoin & Co. could continue to exist, tax evasion and to a lesser extent, the use of virtual currencies in paying for illegal activity would be much more difficult.
Both are still very easy at the moment. In this sense, more comprehensive control by public authorities is desirable. Especially as the concept of the currency it remains untouched. It is also important that only the control of trading platforms at the federal level is proposed and not a complete trade ban, as has happened for example in China. So far, crypto trading platforms are controlled at the level of the individual USA states.
All cryptocurrencies deep in the minus
Market capitalization shrank within hours to nearly a third of its peak in early January. The bitcoin price was only slightly over $ 6,000, compared to a record of $20,000 in December. In many cases, it was warned against the bursting of the bubble. In view of the recent heavy inflated prices, a comprehensive correction was expected from many experts.
After all, the descent could be stopped for the time being in the last few hours. However, it cannot be predicted at which final value prices will settle at the end. New negative news, such as the new measures taken by several major banks to ban the purchase of Bitcoin by credit card, are unlikely to have a calming effect on the mood it has fueled.
Derivatives Trading with Bitcoin May Start
Already in just over two weeks, there will be futures contracts on Bitcoins for the first time. USA supervision has allowed trading in the papers. That could further increase the bitcoin price. In the future, you can also trade on bitcoin financial papers.
It should be ready before Christmas. Then the world’s largest derivatives exchange CME wants to launch the first future on the digital currency Bitcoin. As the stock exchange announced on Friday, it has now received the permission of the competent supervisory authority. Supporters of the digital currency have been waiting for this news with tension. Because this brings the first financial paper on the market, with which one can speculate on rising Bitcoin rates, without having to buy even Bitcoins.
Futures are stock market contracts that can be used today to secure the price of a commodity or currency that you will receive later. These papers are actually intended to hedge against price fluctuations. But you can also use them to consciously bet on falling or rising prices.
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