- The price of Bitcoin may be preparing for a correction as U.S. regulators seek to release a legislative bill to regulate stablecoin issuers.
- Notable investors are emerging undoubtedly as they increase their stake in BTC.
Bitcoin could suffer most from the recent initiative of some US congressmen to make it illegal for any company or individual to issue stablecoins without federal approval.
If Tether goes down, he will take Bitcoin with him
A new legislative piece dubbed the ‘Stablecoin Bank Tiered and Licensing Enforcement’ Act (STABLE), has been introduced in the US Congress to regulate the issuance of stakes. The new bill requires companies and / or individuals to obtain approval from the Federal Reserve Bank, the Federal Deposit Insurance Corporation (FDIC), and other relevant banking bodies to be able to create such digital assets.
The proposed Act aims to protect US consumers from cryptocurrency scams, fraudulent activities, and other risks associated with fixedcoins.
“It will be unlawful for any person to publish a product related to stablecoin or stablecoin, provide any service related to stablecoin, or otherwise engage in any commercial activity related to stablecoin, including activity involving content of fixedcoins issued by other persons, without prior written approval, and in perpetuity, by the appropriate Federal banking agency, the Corporation, and the Federal Reserve System Board of Governors, ”reads the STABLE Act.
Rep. Stephen Lynch, who is one of the three proponents of this bill, said allowing a version of the US dollar currency from a private entity is unacceptable.
According to Alex Saunders, CEO, and founder of Nuggets News, if this new Act is approved, the cryptocurrency market may hit twelve as it leaves Tether (USDT) stuck in regulatory limbo.
Stablecoins have become such a huge part of it all #Ethereum ecosystem. Not just payments & #DeFi. It would not surprise me if this news scares the market in the short term. Especially as we are getting tired at these higher levels. Traders alert. $ ETH https://t.co/ByJc4TLYgi
– Alex Saunders (@AlexSaundersAU) December 3, 2020
On the brighter side, USD’s USD Coin (USDC) recently worked in partnership with the payment processor’s massive Visa. The collaboration aims to facilitate transactions between over 60 million traders by allowing them to spend a balance of USDC.
Although USDC is seven times smaller than Tether in terms of market capitalization, the partnership can minimize the impact that the STABLE Act can have on the cryptocurrency industry.
Large investors remain out of control as metrics on the chain turn bullish
High net worth investors remain confident in Bitcoin despite recent developments.
For example, former Goldman Sachs fund manager Raoul Pal recently placed a huge bet on the leading cryptocurrency. Pal, who has always been vocal about his stance on digital currencies, said he would liquidate its gold position, shifting 98% of its portfolio to Bitcoin and Ethereum.
The CEO and co-founder of Real Vision is not alone in his bullish stance as prominent chain analyst Willy Woo claims that $ 200,000 Bitcoin by the end of 2021 is “very conservative.”
Woo also noted that the depletion of BTC held at the spot of exchanges could be one of the main catalysts for the next parabolic rise.
Bitcoin caught on random exchanges
While the general sentiment of the cryptocurrency market hovers at record levels of “extreme greed,” more notable investors are pouring in as they seek to protect their capital from the impact of the pandemic on the global economy.