When the price of bitcoin was effortlessly making new all-time highs almost every week back in 2017, bubble burst predictors never ceased predicting the fall of the king. Fast forward to 2018, the markets have gone all bearish due to regulatory pressures, Mt. Gox calamity and others, yet a former chairman of the CFTC has said the bubble may not burst after all.
No Bubble In Sight
Jim Newsome, a former chairman of the U.S Commodities and Futures Commission (CFTC), has said that the highly anticipated bitcoin bubble will not burst in the near future since the industry is still very much in its nascent stages. Furthermore, the “big money” is not there yet as many institutional investors are yet to catch the bitcoin fever because of the regulatory uncertainties surrounding cryptocurrency markets.
Newsome and Paul Atkins, the former SEC Commissioner, presented a paper on best practices for ICO organizers and participants at the Chamber of Digital Commerce’s annual meeting on March 8.
However, Newsome noted the completion of the report has been delayed for two weeks due to the fact that they found out the project is much more complex than they initially thought. The CFTC chairman-turned crypto advisor stated that the SEC Chair might be taking a harder line on cryptocurrency because of the word he’s getting from the White House.
Be Fair on Crypto or Be Left Behind
The former CFTC chief is not oblivious of the cryptocurrency revolution. He’s made it clear to officials that other world governments are trying their possible best to organize their blockchain and virtual currency ecosystem and the U.S. might be left behind in this revolutionary and innovative technological race if care is not taken.
SEC Precipitates Bearish Sentiment
On March 8, BTCManager published a story on the latest SEC guidelines for initial coin offerings (ICOs) and cryptocurrency exchanges. The regulatory body made it categorically clear that all crypto exchanges must register under the SEC. NASDAQ Index Research and Product Development Head, Dave Gedeon has said that its very unlikely the SEC would approve a cryptocurrency exchange-traded fund (ETF) anytime soon.
Also, the former CFTC Commissioner, now functioning as DTCC (Depository Trust and Clearing Corporation) Global Policy Chief, Mark Wetjen has hinted that the U.S. Congress will give the financial regulatory agencies the go-ahead to regulate cryptocurrency products.
The author strongly believes the bitcoin bubble burst in 2017 when the price of bitcoin nearly reached $20,000. Instead, it crashed all the way down to near $6,000 in February. If that’s not a bubble bursting, then what is it?