Bitcoin’s price rose bullish again late on 8th July 2019 as it broke above $12,000 psychological level. The price gained 7.2% in less than 12 hours; it rose from $11890 to record a monthly high of $12750. While technical analysis of Bitcoin has a strong bullish penchant, Monday’s move can be attributed to regulatory progress made by the US and China.
The price of Bitcoin at 3: 50 hours UTC on 9th July 2019 is $12630. It is trading 10.53% higher on a 24-hour scale.
As reported earlier on CoinGape, People’s Bank of China has proposed a new cryptocurrency plan that will be implemented through WeChat for about 1.1 billion Chinese customers. The release of a stablecoin from centralized institutions will possibly have similar effects on Bitcoin, like Libra. Anthony Pompliano, the founder of Morgan Creek Digital also tweeted about it,
BREAKING: China has received internal approvals to create a central bank digital currency and has already started building it. Let the global arms race for digital currency supremacy begin
SEC Introduces New Crypto Guidelines
The Securities Exchange Commission in the US also made significant progress related to crypto regulations. Reportedly, more than 35 firms start-ups based on cryptocurrencies have been seeking SEC’s approval to get brokerage license. Some of these applications have been pending for more than six months.
SEC Commissioner, Hester Pierce notified the public about SEC’s new stand with a little added humor. She tweeted,
If figuring out how to deal with the SEC on crypto issues feels like a regulatory version of an escape room, here’s the latest clue…
According to SEC rules, any broker requires ‘third-party repositories to safeguard client assets.’ This complies with the ‘Customer Protection Rule’ which formed to protect the customers from theft and fraud.
However, these rules do not apply to non-custodial characteristics on Bitcoin and some of the other cryptocurrencies. Hence, the SEC has decided to ease its regulatory roadblocks for such applications o cryptocurrencies.
Hence, according to the new guidelines, while these firms would still face some resistance, individual other players like OTC, peer-to-peer market, etc. should be in the clear. the SEC and the Financial Industry Regulatory Authority noted in the press release that
“Noncustodial activities involving digital assets do not raise the same level of concern,”
While the approval would still be contingent on specific applications, more than two dozen newly regulated firms are expected to flood the US markets soon.
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