Bitcoin Industry

Bitcoin’s Volatility Triggers More Regulatory Attempts in the US

JP Buntinx | February 6, 2018 | 10:00 am
SEC
Bitcoin

Bitcoin’s Volatility Triggers More Regulatory Attempts in the US

JP Buntinx | February 6, 2018 | 10:00 am

The US Senate shows a great interest in Bitcoin and cryptocurrencies all of a sudden. With the Bitcoin price tanking, the government feels the need to intervene. More specifically, top market watchdogs will be questioned regarding the futures market. Additionally, there will be a strong focus on potentially introducing additional regulation. It will be impossible to curb Bitcoin’s volatility, though. Right now, all markets are bleeding value and the end is not in sight just yet.

The Senate Banking Committee will hold a hearing on cryptocurrency later today. During this meeting, they will speak with the chairmen of the CFTC and SEC. There are growing global concerns over the risks Bitcoin and similar currencies pose to investors. Especially during these volatile periods, a lot of money can be lost in the blink of an eye. Finding some way to curb the exposure of consumers seems to be the top priority in the US right now. How this will all go down, is anybody’s guess at this point.

Bitcoin’s Volatility Remains a big Problem

One of the possibilities is regulating exchanges even further. It is not easy to sign up for an account and get your identity verified these days. Adding more hurdles for users to overcome seems like a plausible solution. A federal framework in the US would also help move things along accordingly. So far, individual states have their own requirements, whereas some don’t even have any specific restrictions. If there were to be one guideline for the entire United States, things may look different. Such legislation would also legalize cryptocurrencies, which isn’t necessarily what the government wants.

No one should expect any major decisions to be made later today. This hearing focuses on collecting facts and ideas to move forward. Neither the SEC nor CFTC can effectively oversee cryptocurrency exchanges. It is very likely that situation will come to change sooner rather than later. It’s unclear if that is a positive development or not. None of these decisions will help reduce the volatility of Bitcoin and other assets on the market.

It is evident the cryptocurrency market causes a lot of concerns right now. With so many markets crashing in quick succession, a global panic ensues. Regulation will not bring volatility to an end by any means. It is unlikely anything can effectively curb these wild price swings right now. Putting someone in charge of overseeing decentralized markets is an interesting idea. Whether or not it will work in the US, is a different matter altogether. Rest assured there will be lots of eyeballs on this meeting later today.

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  • Rob Coins

    Buntix has moved over here to spread his FUD……. it is a normal market cycle…..nothing keeps going up forever…but it aint over…just back to where it was in November….HODL people & be patient, dont let Wall Street shake you out.

    • George Fredrick

      Yah. You right Rob. Look at their creation, It is falling hard. And don’t get me started on the $$$ Oh and I making a killing with the ES futures.

    • GeorgeSmith1

      CFTC asked for US$1.00 in budget this year.

      Sounds like Trump Administration is willing to leave the owners of bitcoin with a bill for electrical power… and I’m not sure that’s a bad thing.

  • Stacy Dale Barendse

    Its called a free market moron. No innovation can happen without it.

  • George Fredrick

    MAN ALIVE!!!!! Go away already US. Geeeeeee!!!!! We are not interested with your nonsense. You did not create bitcoin so it is none of your business.

  • Regulatory idiocy in China and South Korea blows up Bitcoin volatility. Idiot pols in US cite Bitcoin volatility in call for more regulatory idiocy. Dog bites man.

  • Spencer Rhodes

    Buntix is a true FUD artist, that’s for sure.

  • likehanzo

    this article is a joke…you post this now and don’t reference either of the statements that have already been released by Giancarlo or Clayton. TOTAL FUD! They are both very bullish on crypto and recommend the general practice of:

    ” “Do no harm” was unquestionably the right approach to development of the Internet. Similarly, I believe that “do no harm” is the right overarching approach for distributed ledger technology.”

    Also: “We are entering a new digital era in world financial markets. As we saw with the development of the Internet, we cannot put the technology genie back in the bottle. Virtual currencies mark a paradigm shift in how we think about payments, traditional financial processes, and engaging in economic activity. Ignoring these developments will not make them go away, nor is it a responsible regulatory response. The evolution of these assets, their volatility, and the interest they attract from a rising global millennial population demand serious examination.”

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