Today, there is good news for cryptocurrency enthusiasts after the Securities and Exchange Commission (SEC) gave Blockstack Inc. the thumbs up to raise up to $50 million under a license called Regulation A+.
Already with several notable projects, Blockstack is currently building a platform for the decentralized web.
Now with the A+ license, they will be able to offer a utility token to average investor’s ensuring wide distribution of tokens and assets versus a D license that only permits projects to raise money from wealthy investors.
A first for the American crypto market
The hope is that this will pave the way for other companies to follow suit. Interestingly another company YouNow received A+ approval the following day.
This is seen as a noteworthy step, giving much-needed clarity for the US crypto arena and is an indication that US lawmakers are warming up to crypto assets.
On the economic front
The Federal Reserve was very upbeat on the financial markets but regarding Facebook’s Libra project, they expressed an unexpected tone.
Jerome Powell, Fed Chairman, had previously said that Libra did not pose a risk but now they are on high alert according to news reports.
Following his comments, there was a drop in Bitcoin (whether it is connected or not). However, it happened at the exact moment that the Fed Chair made his comments on Libra.
According to Mati Greenspan, eToro’s senior market analyst, he believes that the crypto community has strong support and are bullish that the Libra project is attracting attention for bitcoin.
He also believes that one day, people will be able to buy Bitcoin with Libra but that it probably might be delayed by the Fed calling for increased oversight.
The Fed’s dovish signal saw markets climbing but the optimism soon petered out after the initial reaction with the Dow Jones reversing fairly quickly to 27,000.
Focus on rate cuts by the Fed
With market participants expecting a Fed rate cut at the end of July at the next Federal Open Market Committee policy meeting, the rest of the markets were consistent.
Many analysts are questioning whether the Fed will enter a rate-cutting cycle, bringing the interest back towards zero.
Mati Greenspan is of the opinion that Bitcoin should be reacting to the news that the Fed will be cutting rates as it will give markets more liquidity.
Tuesday’s hearing was harsh and bitcoin fell. Wednesday’s hearing was friendly and bitcoin rose.
My friends, it looks like bitcoin’s price is reacting to updates from the US government. It’s been a while since fundamental news has moved crypto.https://t.co/L2EVGQqXXv
— Mati Greenspan (@MatiGreenspan) July 18, 2019
Which means there will be more money for investments. But a presidential Tweet from Donald Trump can for better or worse change the outlook.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
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