Bitcoin, Ethereum and cryptocurrencies are struggling as the economic slowdown drags the stock market, fearing fresh stablecoin swirls.
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While Ethereum prices fell below $ 2,000 per ether, Bitcoin prices fell below $ 30,000 per Bitcoin level (Bulls continues to make huge price forecasts). Since the collapse of the two major cryptocurrencies earlier this month, the threat of regulatory crackdown has struck the crypto market.
Today, the crypto market is being organized by a bipartisan group of US Senators and backed by the details of the long-awaited crypto bill led by Senator Cynthia Lummis (R-WY), who supports Bitcoin.
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“We designed [the crypto bill] That’s why it works within the usual framework for managing and regulating traditional assets, “Lumis said. Axios Earlier this month, he added in a speech at the American Enterprise Institute think tank last week that details of the bill could be released soon this week, with the official bill announced in Congress in June.
“We’re going to put it out in draft form for discussion purposes, and you want to help us get this bill in the best possible way before we actually submit it. You can spend 30 days on it, “Lummis said.
The bill may define whether various cryptocurrencies are securities or commodities and which institutions monitor them (Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC)). It is expected.
Other provisions cover consumer protection and taxation, but the rules for blockchain-based non-fungible tokens (NFTs), which became very popular last year after being accepted by the world of art, entertainment and sports, are expected. Not included.
In a speech last week, Lumis suggested that the bill put stablecoins such as tether and the collapsed algorithm stablecoin terraUSD (UST) into the securities category.
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“That is, Bitcoin is a commodity, for example,” Lumis said. Axios.. “So it will be classified as CFTC for trading and spot market and futures market purposes. [a cryptocurrency] Meets the Howey test [which uses four criteria to decide what qualifies as an investment contract] It makes it secure, it would fall under the SEC. “
Last week, SEC chairman Gary Gensler, who previously urged legislators to increase scrutiny of the fast-growing crypto market, showed that Bitcoin agreed with Lummis that it was “maybe” a “commodity token.” I did.
Gensler told the House Expenditure Commission that the SEC “probably has a huge number of cryptocurrencies” but doesn’t have Bitcoin, which Bitcoin will go “over there” to the CFTC.
“I think many of these tokens will fail,” Gensler said following a commission hearing, which The Wall Street Journal.. “Cryptocurrencies … I’m worried that many people will be hurt. That will undermine market confidence and market confidence.”