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What does the proposed bill in the U.S. mean for the cryptocurrency industry?

GB Market Commentary 08/06/2022

by Marcus Sotiriou

Bitcoin remains rangebound between $28,000 and $32,000 as we experienced choppy price action yesterday. $31,500-$32,000 remains a key level of resistance to overcome for sustained upside.

Regulation is seeing positive progress as the biggest Bitcoin bill in history is to be proposed in the U.S. This has been put forward by Senator Cynthia Lummis and Kirsten Gillibrand. The bill would give the CFTC control over regulating crypto which are deemed to be commodities, which includes most of the major cryptocurrencies. This also means that the SEC will oversee regulating coins that are deemed securities. Furthermore, transactions under $200 would be tax exempt. This removes a huge burden for merchants who have been deterred by this tax issue. In addition, stablecoins will have to be 100% backed, which will provide confidence to many investors especially after recent events with UST. Even though this bill has not passed yet, it is very promising as it would provide regulatory clarity which many institutions are seeking before they invest in the space.

What does the proposed bill in the U.S. mean for the crypto industry?

Citadel Securities, a multinational hedge fund, is building a cryptocurrency trading ecosystem intended to create more efficient access to deep pools of liquidity for digital assets. It aims to facilitate the safe, clean, compliant, and secure trading of digital assets. Wealth managers, market makers, and other industry leaders are expected to join the marketplace ahead of launch.

Fidelity have made significant moves recently in the crypto space

Fidelity and Charles Schwab are also reportedly helping to build the platform. Fidelity have made significant moves recently in the crypto space, as they announced yesterday they will allow account holders to invest a portion of their retirement funds in Bitcoin. Fidelity also aims to hire 110 blockchain experts by year-end as it expands beyond Bitcoin-related services. As Fidelity are one of the biggest asset managers in the world, this will encourage more asset managers to enter the industry.


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