Will U.S. Regulators Change Their Tune Following Chinese Announcements?
It appears that U.S. regulators might be altering their stance on cryptocurrencies. This could be a form of response to China, which has recently embraced blockchain technology. The Chinese government has unveiled plans for a digital version of the Yuan called DCEP, and Xi Jinping has praised blockchain technology. Fear of being left behind technologically might have registered among American politicians and regulators.
Earlier we have reported on CFTC Chairman Tarbert discussing regulations on fintech & cryptocurrencies. It seems that Tarbert has even more on his mind regarding Bitcoin, cryptocurrencies and Libra, as he underwent an interview on CNBC.
Tarbert Discusses Cryptocurrencies & Blockchain on CNBC
Tarbert on Blockchain:
"I want the United States to lead, particularly in the blockchain technology that underlies digital assets. Ultimately I could see it overtaking the internet or being effectively parallel to the internet in using a variety of different kinds of transactions, not just the financial system, but in other types of transactions as well. I think whoever ends up leading in this technology will end up writing the rules of the road for the rest of the world. My emphasis is on making sure that the United States is a leader."
Regarding the Differences on Bitcoin & Libra:
"They're fundamentally different products and I think we also know how Bitcoin works. As you say, it has been around for ten years and we have a good idea of how it works and we're able to classify that not as a security but a commodity, whereas Libra is developing. And there's a bunch of unanswered questions and also the way that it is structured, linking it directly to a set of national currencies. It's a very different product."
How the Trump Administration Views Cryptocurrencies:
"Many of the concerns that Secretary Mnuchin has I have as well in terms of anti-money laundering, making sure that these markets continue to have integrity. So I don't think there's actually any space between us. It's just that for those that are commodities regulated by us, we want to make sure we create an environment where these markets have integrity and we're able to regulate them and they're able to innovate."
The U.S. Administration's Changing View
In conjunction with Tarbert's statement's yesterday, it appears that the government is slowly warming up to the concept of cryptocurrencies. Either that or they understand that fighting it would be pointless. Nonetheless the even Tarbert doesn't seem too keen on Facebook's Libra citing the "unanswered questions" with Libra.
It seems that like the Chinese government, the U.S. will place a heavy emphasis on KYC/AML procedures. Cryptocurrency fundraisers such as ICOs & IEOs will likely still be considered unregistered securities. New cryptocurrencies might also draw negative attention from regulators, but most of the top cryptocurrencies will likely get a pass.
All and all it seems that the U.S. government is cautiously embracing Bitcoin, cryptocurrencies & blockchain to some extent.
Tarbert's Comments Don't Move the Markets.. Yet
Changes in policy or government officials making positive comments on cryptocurrency usually move the markets if it is a big country. While Tarbert's recent comments here and yesterday seem to signify a change in policy or thought on cryptocurrency, Bitcoin has yet to budge.
The price did not manage to roll back to the resistance level of $8300 and now it is most likely that the price will go down after touching the resistance line.
The goal remains the support line on $7789 USD.
Bullish Momentum is slowing down, but it is not too bad yet
Price is testing 23.6% Fibonacci on 4hrs chart so we can expect a short time bullish move
If the price will not recover and Dynamic resistance on 1D chart will not show any retrace so we can expect a move to the next 38.2% Fibonacci level on 1D chart which is $7154 USD
RSI Synthetic indicators show some bearish move so we need to wait for a flattening curve on 1W chart at least, before entering a market for a long trade.
*Technical analysis provided by Senin
Written by Jonathan Ganor
Writer & cryptocurrency aficionado