Crypto investors exhaled this week for two reasons. One, Bitcoin finally surged over $50K on Tuesday in a bullish breakthrough of critical resistance. Second, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission, announced at the House Financial Services Committee hearing that the SEC has no plans to put a ban on crypto. (Bloomberg)
You know you’ve made it when every major SEC committee starts paying attention. The importance of crypto as an economic tool isn’t lost on the government, and the SEC continues to study and attempt to allocate a productive, regulated space for digital assets in the economy. Ironically, Gary Gensler himself used to teach courses on blockchain at MIT.
The free markets traditionally move faster than the government. So while governments work on better regulatory clarity, corporations and startups have embraced crypto. From Bitcoin on the Tesla balance, Microstrategy with its massive bet on Bitcoin, and all the largest crypto finance apps, including PayPal, Venmo, Square and Voyager all offering Bitcoin as well. Crypto adoption has become an intrinsic component of modern finance.
Keep in mind, some government voices are more nurturing of crypto’s potential than others, mainly that of North Carolina House Representative Patrick McHenry. McHenry proposed a bill, the Clarity for Digital Tokens Act of 2021, with the purpose of carving out a safe harbor for select decentralized cryptocurrency projects. This would amend the Securities Act of 1933 with the hopes of bringing “legal certainty to digital asset projects that we badly need regulatory clarity to launch." (Cointelegraph)
This proposal echoes the efforts of SEC commissioner Hester Peirce, who raised similar ideas in 2019 with the goal of allowing a three-year grace period from SEC legal action for developing token and DeFi projects. Pierce sees this as a revolutionary step toward government acceptance and adoption, signally bigger gains for national investors:
“If adopted, the proposed safe harbor could be the most groundbreaking development for the U.S. cryptocurrency market to date. By putting development first and giving projects runway to build robust networks, the proposed safe harbor puts an important stake in the ground towards supporting American access and acceptance of digital asset markets,” said Peirce.
America, of course, is not alone in the effort to make Bitcoin fit into a long-standing bureaucratic system—a case of round currency vs. square treasury. Brazil recently okayed a bill that will establish Bitcoin as a national legal asset. As it stands, Bitcoin is currently unregulated in the country, but their hope is to create a legal space for Bitcoin to be used in the market. While they have refrained from pushing for Bitcoin legal tender like El Salvador, Brazil is taking baby steps to introduce the crypto future to the current legal paradigm. (Decrypt)
Among counties making similar moves are Ukraine, who just legalized the use of Bitcoin last month, and the United Arab Emirates, whose government recently agreed to support crypto asset trading. Other administrations, like the United Kingdom and Nigeria, are building divisions geared toward the study and understanding of cryptocurrencies with plans of future use and regulation. Although China has outright banned crypto, some governments that once turned up their nose at digital assets are rekindling an interest.
India just gained its second crypto unicorn by way of an exchange platform, CoinSwitch Kuber. CoinSwitch Kuber raised an astounding $260 million in its Series C funding round, making it the largest crypto exchange in the country. The exchange plans on using this funding to increase accessibility by introducing 50 million citizens to the platform, as well as implementing staking and lending. This is a far cry from India’s past attempts to ban cryptocurrencies entirely, and CoinSwitch Kuber CEO and Co-Founder, Ashish Singhal, seemed to reflect this in his statement:
“Every evolution takes a leap of faith. We are taking a giant one today with CoinSwitch Kuber turning into a unicorn and becoming the largest crypto company in the country.” (Cointelegraph)
George Soros is taking that same leap. Old money meets new money as Soros billionaire investor and well-known philanthropist, revealed he holds “some coins.” Although Soros didn’t specify which assets his company is holding, representatives hinted at an interest in decentralized finance.This is a turnaround for Soros who initially had some reservations about crypto’s inherent volatility and immaturity.
Dawn Fitzpatrick, CEO of Soros Fund Management, provided some clarification behind the fund’s decision to invest, citing the use cases for Bitcoin beyond being an inflation hedge due to its new investor popularity. “There are 200 million users around the world, so I think this has gone mainstream," said Fitzpatrick, adding, “I’m not sure Bitcoin is only viewed as an inflation hedge.” (Decrypt)
Even Edward Snowden, famed whistleblower turned ex-patriot, spoke out from Russian exile this week in favor of Bitcoin. Snowden noted on twitter that China’s ban on crypto created more power for the digital asset market, saying “it just made Bitcoin stronger.” (Cryptopotato)
Bitcoin is gaining more supporters by the minute. With over 100% growth in the past 2021, the moon is not the limit for the cryptocurrency industry. (Mint) Keep in mind that, as the U.S. and global economies are facing a post-pandemic recovery, it’s absolutely essential that nations don’t stifle crypto and blockchain innovation—both for economic growth and welding economic power. You can only imagine how different the World would be if Google, Apple, and Microsoft weren’t given the opportunity to grow and thrive, and how different our World would be today.
It’s only a matter of time before the government provides the crypto clarity that companies are waiting for. We’re prepared and here for it, and we’ll continue giving financial freedom to the people.
Top market movers as of October 8th, 2021
- Shiba Inu (SHIB) +237%
- Bitcoin Satoshi Vision (BSV) +33%
- StormX (STMX) +32%
- Ocean Protocol (OCEAN) +28%
Yellowblock > "Bank of America is bullish on Ethereum, NFTs and DeFi"
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