Crypto markets stabilise after Gensler ICO comments
While the cryptocurrency sector remains largely unregulated in most jurisdictions, the US is as least appearing adamant that initial coin offerings (ICO) should be treated as securities, and further clarification of this stance helped settle the crypto market on Tuesday.
Former chairman of the Commodity Futures Trading Commission (CFTC) Gary Gensler said on Monday that most cryptocurrencies sold through an ICO should be considered as securities.
Regulatory uncertainty has done more to undermine confidence in cryptocurrencies than any other phenomenon, research has found.
Business advisory and audit group PwC found in a study in August that it was regulatory uncertainty that was stopping companies from adopting blockchain – the technology that powers cryptocurrency transactions.
Calls for a unified approach to the adoption of global cryptocurrency regulations have intensified in recent months – a period that has seen some stabilisation in digital asset prices.
Indeed, a recent study by the Bank for International Settlements (BIS) found that cryptocurrency prices displayed considerable correlation with regulatory announcements, with positive price moves seen after calls for global standards.
Gensler’s comments on Monday tallied with those of members of the Securities and Exchange Commission, and broaden hopes that the US approach to regulating the crypto sector will not be too heavy handed.
Gensler said: “I think that cryptocurrencies like bitcoin need more protection, and probably more protection than even the oil markets.”
Price round up
While the cryptocurrency markets were mostly lower on Tuesday, the losses were modest and no major resistance levels were breached.
Here’s a round up of the top 10 digital coins at 11.30am [London time]:
- Bitcoin -1.7% at $6,718
- Ethereum 2.6% at $214.17
- Ripple XRP -0.8% at $0.47
- Bitcoin cash -1.7% at $470.72
- Eos -2.1% at $5.54
- Stellar lumens -3% at $0.23
- Litecoin -1.4% at $56.03
- Tether +2.1% at $0.95
- Cardano -1.7% at $0.08
- Monero +0.2% at $109.49