shares of coinbase global (coin 20.20%) Coinbase surged Wednesday after the Senate Agriculture Committee introduced a bipartisan bill to identify and classify “digital goods” overseen by the Commodity Futures Trading Commission (CFTC). after being caught Cryptocurrency Enforcementwhich was welcome news for the company and its investors.
Coinbase shares jumped as much as 22.3% in Wednesday trading after the bill was reported. silvergate capital (SI 1.33%) also rose 6.7% and could benefit from clearer regulation. Bitcoin miner Hut 8 Mining (hut 10.60%) It went up 12.4% today. The stock rose 19.3%, 1.8% and 9.4% respectively at 2:15 pm ET.
The crypto industry is looking for regulatory guidelines given the gray area the industry currently operates in the country and this could be a step in that direction. more hostile to cryptocurrencies.
Legislation is currently still in commission, but early language will set standards for crypto regulation, define what a digital commodity is, and require trading platforms to register with the CFTC. At this point, simply defining what is a digital product and what is a security would be a welcome clarification for the industry.
The bill clearly defines Bitcoin as a commodity, which is one reason why Hut 8 Mining is soaring today. If the SEC becomes overzealous, it could threaten its business, but this could allow business as usual.
Also note related hacks Solana Many other hacks today and this week have pushed investors to find ways to protect their digital assets. You may be supporting.
The cryptocurrency industry continues to move towards mainstream, but at a slow pace. Regulators have created uncertainty over the past few years by not putting cryptocurrency rules in place while developers are building so quickly that even their most active followers cannot keep up. I’m adding. It’s bound to lead to tensions between innovative companies and lawmakers.
I think we’ve had some pretty bullish comments from both the White House and Congress in 2022. That could lead to sensible regulation in the near future. The CFTC has always been the preferred regulator for most cryptocurrencies, and there is also a discussion of “digital securities” in the bill, with the SEC overseeing some cryptocurrencies. It may become possible.
If Coinbase is clear about regulation, that’s good news. Otherwise, this battle will go to court and no one but lawyers will help.