Gary Gensler, Chairman of the Securities and Exchange Commission, is speaking today, and Bitcoin investors will surely be listening.
Cryptocurrency traders and investors should expect to learn more about government regulation of their Old West asset class. This could cause some volatility for Bitcoin and other digital tokens. In the long run, however, regulation will ultimately help cryptos.
Gensler is scheduled to speak at the Aspen Security Forum on Tuesday morning at 8 a.m. EST. He is the country’s leading securities regulator and has been keeping a close eye on cryptocurrencies since taking the job in April.
Regulation of cryptocurrencies is inevitable. Regulation is what the SEC does.
But Gensler is not a crypto bear. He spent years at MIT learning and teaching digital tokens before getting his SEC job. Still, he will likely indicate that he is in favor of tighter regulation of cryptocurrency exchanges.
The regulation could be unethical in crypto, built around a decentralized currency without government interference. Yet regulating exchanges essentially means that the SEC will ensure that exchanges are well capitalized and don’t lie to people. Fraud should also be antithetical to crypto traders.
Better regulation will have other benefits. This will pave the way for things like Bitcoin ETFs that will trade on regular brokerage accounts. ETFs can significantly expand the investor base for cryptocurrencies.
Bitcoin is down, shortly before the speech, falling about 1% on Tuesday to $ 38.470 a coin.
It’s been a mad rush lately for the biggest cryptocurrency by market value recently. Bitcoin is down about 40% from its 52-week April high of nearly $ 65,000, but it’s still up about 143% from its 52-week November low of less than $ 16,000.
Over the past five days, Bitcoin has fallen by around 3%. Over the past five years, Bitcoin has grown by around 6,700%. the
can’t boast of returns like that. The S&P has grown by around 103% in total over the past five years.
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