So, this Bill is supposed to help the CFCT and SEC figure out which coins and tokens are classified as commodities or securities. It's a move towards clearer crypto regulations in the US. Some folks are saying, and I saw it in the news too, that this Bill could cut down on crypto manipulation, but honestly, I'm not sure how accurate that really is.
Today, the Senate is set to vote on this Bill.
The manipulation in question is probably in regards to the big parties that would intertwine with one another.. I also don't understand why would paying up the interest with stables be that kind of a big deal, and why stability would suffer from that.
Who passes bill that will be against there own self because trump and some of his elite friends who have some crypto investments (huge ) who will manipulate the market are not going to find it easy to do that and this I see it as a reason the bill will fail and then the market will dump in the expected way of bearish season.
So however I still wouldn't agree that the bill will help in regulating the manipulation in big crypto except for those pump and dump coins, those at least will be regulated how people can create coins and add to the market.
If it will reduce crypto manipulation it will definitely increase the trust that people have in it because the fear of manipulation has been real and discouraging for some people who have considered buying before. With the assurance that this bill will bring that manipulation has been removed, that will definitely send more people into buying more cryptocurrency particularly Bitcoin. I feel if it is passed it will be positive for Bitcoin, and possibly news to send Bitcoin price parabolic. I believe it will have a positive outcome.
US will never maintained a particular stand when it comes to cryptocurrency, because they don't want to leave it and at the same time they are trying to avoid being together with bitcoin, they keep making stance on different occasion about bitcoin, yet they remain complacent and indecisive about what they can conclude on, also, i don see these moves as part of what can make them create a means that reduces crypto manipulation by any way.
It is a bill to reduce market manipulation and not to completely eradicate market manipulation meaning that people will their have to watch their trades strictly because even if this bill is passed, it doesn't stop market manipulation and traders would definitely be turned to liquidity when the manipulation happen at a time it is not expected. If they still come up with any impactful news or event, it might be purposeful or not but that can still make the market plunge.
I also agree with you that the big guys will never do what is against their interest since it is now obvious that they are heavily invested into cryptocurrency. Therefore, I don't think this bill will see the light of the day.
Secondly, anyone thinking that market manipulation will end does not really know how the market makers make money in the market. Market manipulation is part of the business and the way big players operate to have edge in any market that is controlled by the forces of demand and supply. To manipulate the market simply requires having the capital to do so, create imbalance in demand/supply and the market will respond accordingly.
Of course it's like setting oneself ablaze but however it could be a totally different bill and not what we think it's going to be, in terms of stoping manipulation it could just be a bill that will focus on controling how some small guys come in and tumble what the big guys use for manipulation or it could be more focused in memecoins creation and also I can suggest that it's might be bad for trump and his family but if only they are not done with crypto but if they are then the bill could stand.
So, from what I understand, banks do not want intermediaries like crypto exchanges to pay interest on stablecoins. This is because the banks feel threatened. Since the exchanges offer higher yields, the banks fear it will affect the amount of deposits they have, which will affect their ability to give out loans and mortgages. Now they're lobbying with the excuse that it would affect the economy when in reality, it's just bad for their business. Funny.
Anyway, I believe the banks will have their way. They are part of the heart of the economy, and they rarely fail to get what they want.
I don't see how the bill will make the market pump or dump. It's just a bill that determines which coins should be securities and which should be commodities, so the regulatory bodies will know their jurisdiction. Even if its affects the market, it would just be a short term thing.
That will still happen especially to coins or projects with very low liquidity as they can just use small amount of money to manipulate the market. So the bill will just mitigate some visible manipulations and that for me is actually good for the market. It will hinder some illegal wash trading in the market and hopefully, it will reduce scammers in this crypto space. Because if there are concrete protocols towards crypto market, all stakeholders - whether a holder, investor, creator, developer - have common ground as a reference and for sure, there will be repercussions if one part violate those protocols. Hence, they are now careful on what they do with their respective projects.
I just want to understand is, Do CFCT and SEC regulate crypto world over or just the US? If it's just the US, the US is just part of the global market. How does this stop crypto manipulation on a global scale?
Some exchanges or a majority are not even based in the US, so.....
I think this is rhetorical but let me answer it. Each countries have their own regulators for commodities and securities. Some countries SEC regulate both commodities and securities.
There is nothing that can stop manipulations in crypto.
Crypto manipulations is even beyond exchanges.
Was this one the bill that's going to depend on the bankers? I think if it's this one then that's what the CEO of Coinbase is being triggered of having it against that proposed bill.
Yes, that just doesn't stop there.
When money talks and a lot of money is involved with it, the manipulations are not going to be stopped. It will be reduced but, it will not be gone.