USA: GREEN LIGHTS FOR THE CRYPTO
Historical decision by the SEC and the CFTC
At the beginning of February, the crypto history arrived at an important milestone. Everybody was watching anxiously because it was clear that the outcome of the common meeting of the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission), whether it would be positive or negative, would affect the future of the crypto-currencies. The fear that dominated the market led to overall selling crypto-marketwise, and the prices dropped to shocking lows.
CFTC’s J. Christopher Giancarlo’s speech proved to be the most influential regarding the decision makers’ general view of crypto-currencies. Giancarlo highlighted that we would not have blockchain and DLT (Distributed Ledger Technology) if Bitcoin had not been created. He underlined the potential positive long-term global economic effects of the financial freedom that the increasing number of the adaptation areas of crypto-currencies means to today’s young generation.
The decision-makers came to a common view that crypto-currencies do not pose global threat on the world economy. However they agreed on the necessity of a certain extent of regulation. The SEC and the CFTC are going to work in a close cooperation in creating the agreed regulations, the basis of which will be ensuring fair and clear market conditions, with the primary objective to prevent Ponzi schemes and market manipulation.
The USA has made its long awaited decision: the crypto-currencies have got their green light on the level of political decision-making. It means that, from now on, their use is legal, and based on the agreed regulations, a stable growth can start in their adaptability.
The crypto market reacted instantly to the good news. Though there are some critical questions remaining to be answered, it seems that the crypto world is relieved after the first month’s uncertainty and general negative mood: the prices of Bitcoin, Ethereum and quite a few altcoins produced a 10 to 30 percent jump in the 24-hour period following the positive announcement.