After all the heavy correction in the market starting earlier this week, there is finally a moment of glee for investors and crypto enthusiasts.
The largest digital token headed to its first back-to-back increase in nearly two weeks, rising 4.4 percent to US$8,107 by 10:49 a.m.in NY, after earlier rising above US$8,600 for the first time this week, according to prices compiled by Bloomberg. The market has regained more than $100 billion since hitting that low in yesterday's morning session. At the press time, Bitcoin is now trading for $8114.54, according to the data on CoinMarketCap.
The potential of more stringent regulation of Bitcoin and other cryptocurrencies in the USA takes center stage on Tuesday in a Senate Banking Committee hearing.
"When tied to virtual currencies, this technology aims to serve as a new store of value, facilitate secure payments, enable asset transfers, and power new applications."
Bitcoin rose for the first time in six days, snapping a losing streak that had helped push overall losses in digital currencies to about $500 billion, as the top U.S. market cops said they possessed all the authority needed to regulate and risk appetite returned to financial markets.
He further added that "It's important to remember that if there were no Bitcoin, there would be no distributed ledger technology".
The Commission has plans to reach out to "key virtual currency demographics, such as Millennials, through digital communications created to engage these demographics through channels and in forums they are predisposed to engage". Ultimately, the unregulated nature of these platforms and the potential of them to mislead consumers into believing that a regulatory net of some kind exists proved to be a cause for concern.
Democrat cites 'pattern' of USA administration refusals to testify in Russian Federation probe
The panel wants him to appear again to follow up on a January 16 appearance that failed to satisfy some of its members. This is the third time the committee has had to delay Bannon's testimony after his initial appearance last month .
On the other hand, SEC Chairman Jay Clayton sounded a little less excited about cryptocurrencies, however, he hinted that their role in the modern financial system can not be ignored.
Carstens, the former longtime governor of the Bank of Mexico, warned that, "If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability".
According to testimony published on Monday, Giancarlo and Clayton advocate for maintaining orderly markets and to find a balance of interests.
Giancarlo, on the other hand, mentioned the CFTC's ability to obtain and analyze trading data for fraud and manipulation on something like the newly launched bitcoin futures.
"The market was certainly anxious that they might come out harsher", said Mati Greenspan, market analyst at currency trader eToro in Tel Aviv. [Cryptocurrencies are] not correlated with sovereign currencies, so it must be something different than what would move the dollar. "They go to price discovery, custody and some other issues around volatility". Overall, cryptocurrency itself wasn't a main concern, but Clayton was concerned about ICOs giving fraudsters access to money they did not deserve.
According to Coindesk, SEC chairman Clayton said that he is "open" to working with U.S. lawmakers and state regulators regarding any potential new rules for trading sites.
"ICOs - from what I've seen initial coin offerings are securities offerings. I appreciate the responsible step".