February 6th is shaping up to be an important day for Cryptocurrencies

in cryptocurrency •  8 months ago

South Korea, India, and China have all chimed in recently in terms of regulations, now it's the US's turn.

On February 6th, this Tuesday, the Senate Banking Committee is having a meeting to discuss the roles of regulators surrounding cryptocurrencies.

Specifically, they are going to be talking about what the oversight roles should be for the SEC and CFTC in regards to cryptocurrencies.

Why does that matter?

Well, if you haven't noticed, the rules surrounding cryptocurrencies seem to be pretty vague to say the least.

The hope is that this meeting could help provide some clarity.

One of the bigger problems we have had with these markets is the fear of the unknown, the fear of how governments ultimately feel about cryptocurrencies.

Thus far they haven't been overly clear on how they want to regulate them.

This meeting could go a long ways in providing some clarity for US investors.

What will increased clarity do for the cryptocurrency markets?

Depending on what that clarity brings, it could ultimately be very bullish or very bearish.

With the bullish case being much more likely.

The lack of clarity has likely been a big hurdle for institutional investors. Without knowing exactly what they can and cannot do has forced many to just sit on their hands.

With a clearer set of guidelines, that could be the green light for some of these bigger investors to get involved.

The guys from Fast Money offer their thoughts on what it could mean here:

https://www.cnbc.com/video/2018/02/02/one-key-event-that-crypto-traders-are-watching-next-week.html

The perfect storm?

The price is showing some support at an expected support level and now we have a potential catalyst coming in a few days.

That could be the perfect combination for a massive rebound in prices.

As long as the news isn't terrible on Tuesday, or completely unexpected, I would expect to see prices trend up nicely over the coming week, if not significantly.

Clarity for these markets can't happen soon enough in my opinion!

Stay informed my friends.

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I don't want to sound like a staunch pessimist, but I just can't see how anything good can come of the U.S. government getting involved in so-called crypto "regulation."

My prediction: anon cryptos with opaque blockchains will not be allowed on approved domestic exchanges.

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Well I think expecting them not to get involved would be extremely wishful thinking. And to be honest, if we ever wanted to really big money to enter this space and consider it a legitimate asset class, regulations and the blessing of regulators was necessary. That being said, you may be right about the anon cryptos.

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The Trump office will want to make money in Crypto, so probably they will 'ban' it so they can 'regulate' it.

It is going to be really deciding moment for crypto community as other countries have already raised their voice against them.
From very begining we all know if US puts ban on it then we all are really in big trouble.

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Yea I really hope that isn't the case. It would really suck for us!

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The SEC chairman and the CFTC chairman wrote a positive op-ed in the Wall Street Journey last week. It's pretty clear that they will regulate but allow blockchain technology.

https://www.wsj.com/articles/regulators-are-looking-at-cryptocurrency-1516836363?mg=prod/accounts-wsj

As Feb 6 comes and goes and regulatory framework is built, Bitcoin could resume it's run back up as fear wanes.

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btc will not move up until questions regarding usdt are answered.

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GOOD explain

I like the potential for positive result here @jrcornel! The meeting could present an opportunity significant shift which would be exciting. Thanks for the great post.

I hope the crypto coin market goes way down. I will break open my piggy bank and withdrawal from my bank account and buy up a whole LTC or three... Or an Ether. Or 1/10 a Bitcoin!

I would actually be very happy!

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Haha... You are young, so I guess it is fine to take the risk! It would probably turn out very well for you. But I doubt the markets are dropping much more.

Yes clarity is important but nothing in Washington is going to happen in a day. Its probably just good for a few sound bites that will swing the crypto market. I believe the long term prospects are solid regardless of what they say.

some support at an expected support level and now we have a potential catalyst coming in a few days.

Sounds good to me!

I’ve been talking to a LOT of people about buying this dip- this would be a great confirmation to their investment.

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Same here. I didn't feel comfortable telling any friends or family to buy on that big run up last year. However, I did reach out to some friends and family in the past few days that had shown interest about putting some money to work at current levels.

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Yes you did 😜👍😜

This could be the event that pushes crypto to the bottom. I think we are near the bottom so this could be the catalyst to get us there.

Upvoted and resteemed.

Not just the crypto market, stock market had one of the biggest drops in the last few years. If this is the beginning bear market for stocks, money supply into crypto will be impacted at least in the short term. Question is, are we strong enough to withstand a storm and hold on our own.

In a way I feel like these discussions about regulations for cryptocurrencies are a show of power rather than anything meaningful. I mean, they can only regulate if they allow cryptocurrencies to be used legally or not. If they would choose that they become illegal, that would just cause big problems for them. So the best for them is just to say that cryptos are legal and this is how you can turn them into fiat or buy stuff. That will give them the illusion of power, rather than starting a "war on cryptos" (compare to war on drugs, really successful).

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Yes good points. Though I imagine if they really wanted to outlaw/ban them, they could probably do it pretty effectively by just killing off the exchanges and fining anyone found to be holding them. That wouldn't make cryptos go away, but it certainly would take a big chunk out of that current $600 billion market cap.

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For some time. But it would turn the development towards more secure cryptography so that it would be even harder to tell who owns cryptos. And eventually the whole system would go underground and only the criminals would be using them. And there would always be some people who are really smart spending their time developing it further because of the challenge. It would in a way point the direction of development, in the wrong direction, however, making it clear where to go.

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Yeah but if you take a look at the "war on drugs" it figures the who abetted the international drug trade and created many of the drug running routes were actually state apparatuses. so it was collosal psy-op waged on individuals. I'm afraid cryptos will become the same if governments intervene too much.

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True. The cryptocurrency technology is too good to just be thrown away.

I think it is a positive thing for sure if the US and other governments decide to do some regulations. MAny people have been scammed by fake ICO's and insecure exchanges in the wild west world of crypto as it has been. More assurance that people won't lose everything because the exchange got hacked will bring floods more people into the crypto market who have been watching from the sidelines.

I guess all those weather balloons that go up higher than an airplane can and show the Earth as being flat must be a hoax right, because in the mind as a child he remembers seeing the curvature that he was programmed to see since birth.

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A flat earther I take it?

how are you @jrcornel
I am very fond of you I really need your support your power is very big if there is time to spare visit my blog, once again I really love you, best wishes for you

That clarity in needed to boost investors confidence in the market. If I put my money in something, I should have a clear idea of governments disposition toward my investment sector. Clear regulations might just be what is needed to drive market prices upward. Thanks for your contributions @jrcornel

Yes 5 aur 6 day is a big day for most countries

Thanks dear discuss about the cyptocurranec..

How your prediction about steem for the month

I'm eagerly waiting for this day. I hope that all Steemian get a good news from upcoming 6th February.

onak valo vudai amar nice faltu post..

Hope we will hear some positive news and clarification from the U.S. :)

It would be great if the cryptocurrency markets were finally restored!

this is very exiting news and glad the big leagues have finally come in to terms of what action should be taken , hope the US also come up with their own regulation then we will see more stable precises.

Awesome! Thanks for sharing these great post

Appreciate this thanks for sharing .

Lets Hope Good news from the west. If you don't want to invest but wanna get some token. Get some Free aelf tokens & much more here.

If US regulations encourage investment firms to start getting into Crypto, that's just going to increase market manipulation. Ultimately hurting us little guys

Thanks for this cryptocurrency news update providing.... i appreciate this post.....

please upvote me

Hmm, this can go either way hard for cryptos, as you remarked. Probably whatever US decides will be implemented similarly in many corners of the world. Thanks for sharing!

My question is...Has the US really been in crypto, these while? Don't you think we can call their bluff and move on? Afterall Japan, Australia, Canada etc are in and many other countries.

Thanks for sharing @jrcornel.

Yes, it's definitely a buying opportunity for crypto currencies but which one? Unlike fiat markets, this is a whole new world- in which you don't have a company or a central government as a measure of value, rather you look at different distibuted-network algorithms and different governing systems. When you compare a fiat unit to another it's like comparing apples to apples. But BITCOIN is an already aging concept and STEEM is capable of many different things.

Great one for the post @jrcornel
Thanks the sharing,amazing as always

I have a funny feeling that we found the bottom of this correction. This event will spark a new rally fingers crossed.

nice post thank you for sharing

it will be very difficult to convince centralized countries to allow the use of decentralized cryptocurrencies. They do not know how to control but they know they must do it...

write pls more about this.thank you.

Lets see on 6th Feb ...

I'm not really sure why does it matter what the government want to do with the cryptos.You can't stop evolution.

For insight into what SEC is thinking take a look at the SEC filing against AriseBank https://www.sec.gov/litigation/complaints/2018/comp-pr2018-8.pdf though 15 pages its a quick read.

Highly useful and useful post ,,, I "@jacl" Greetings Steemit friends All ,,,

Very good information @jrcornel.

As we see already in China and South Korea , it is very difficult to ban the Cryptocurrency !
With new coming decentralized and anonymous exchanges , like CryptoBridge , it will be very difficult (if not impossible) to track , verifi and tax the users ...

Anything else than a hard legal stop/barrier will fuel us further. And even in that case, Uber and Airbnb proved there is a way to fight conformism.

I hate to say it, but I think the markets will respond badly no matter what the announcement, simple because there will definitely be SOME extra level of regulation. even if it is ultimately good news. For example people seemed to respond to the news that banks were banning credit card bitcoin purchases as though it were bad news, but it actually is a very sensible move. It just seems that there are too many people in this space right now that hoped and believed it would remain the wild west forever, and anything but total freedom does not conform to their vision of how Cryptocurrency should be. I think we have a ways to do down yet before things stabilize again. HODL my friends. HODL!

Ohhh that's good to know something's going to happen!

Like white house

Is there an update on what happened? With the Senate committee I mean.