They intend to discuss the regulation of stablecoins, as well as the technology’s potential benefits and risks.
US financial agencies will meet to discuss the future impact of stablecoinsNEWS
U.S. Secretary of the Treasury Janet L. Yellen announced plans to convene the President’s Working Group on Financial Markets, or PWG, as well as the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to discuss possible interagency work with regard to stablecoins. The meeting is set to take place on Monday July 19.
Secretary Yellen said:
“Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system. In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities.”
In December 2020 the PWG stated that it would begin examining current regulations of stablecoins in order to identify and address the technology’s related risks.
Related Bitcoin sell-off continues as BTC nears $31K ahead of Powell’s speech
The announcement of this meeting comes two days after the Chairman of the Federal Reserve Jerome Powell addressed the need for stricter regulations for stablecoins in front of the House of Representatives. Powell stated that if stablecoins are to be a part of the payments universe, regulation is needed.
Yesterday a bipartisan bill was introduced into the House to provide a clear definition of assets, like digital tokens, and other emerging technology under current securities law. The Securities Clarity Act would apply equally to all assets, tangible or digital, and states an investment contract asset is separate and distinct from the offering it may have been a part of.
Bitcoin bulls defended the $31,000 level again, but data shows demand for BTC and altcoins is weak and this heightens the chase of further downside.
Price analysis 7/16: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTCPRICE ANALYSIS
Bitcoin (BTC) is witnessing a tough battle between the bulls and the bears near $31,000, which makes it an important level to watch out for. Data from Glassnode shows that the $31,000 to $34,300 zone has seen strong interest from buyers and sellers as 9.93% of the Bitcoin supply has moved in this zone.
The failure of Bitcoin to rally quickly from strong support levels indicates weak demand. Proof of the current disinterest comes from BlackRock CEO Larry Fink, who said in a recent CNBC interview that investor demand for cryptocurrencies had declined recently.
Fink said that during his last two weeks of business travel, not one question about Bitcoin and crypto investing was presented to him.
Daily cryptocurrency market performance. Source: Coin360
Another sign of reduced demand is that the 90-day inflow into the United States and Canada-based Bitcoin funds has plunged 93.49% from 191,846 BTC in January to 12,485 BTC, according to data collected by ByteTree Asset Management.
In an interview with CNBC on July 14, DoubleLine CEO Jeffrey Gundlach said that Bitcoin could drop under $23,000 due to the head-and-shoulders trading pattern, which “looks pretty convincing.”
Will Bitcoin break below the support and start the next leg down or is it due for a rebound? Let’s study the charts of the top-10 cryptocurrencies to determine the critical levels to watch out for.