📭 NewsDesk: Is Winter here for Cryptocurrency?

🎙Bitcoins are falling once again

The infusion of politics is forming in the picture for Cryptocurrency, with the Democrats and Republicans having diverging views on the “asset” class. So how does each party view the asset?

That’s what we are going to discuss in this episode.

🐳The Angel and Guardian

The Congressional hearing on Wednesday had provided renewed fear on the prospect of Cryptocurrency. Democrats are advocating for a harsher set of rules governing the activities around Cryptocurrency. They believe consumers may be manipulated in a decentralized space and that “stablecoins” pose a legitimate concern to the comprehensive financial system.

Indeed, the recent episode of the dump seen in Squid Game token that resulted in a crash may have hurt many retail traders, leading to Binance, one of the world’s largest crypto exchanges, to investigate. Indeed, there is no affiliation between the coin and the Netflix series, and the spike and fall result from exuberant emotions and misguide that rattle the coin price.

❤️Love Me, not

With an intensified scrutiny in Washington, investors have more significant discomfort, attributed to one of the critical reasons weighing on Crypto investing sentiments. As a result, we have seen Bitcoin continuing its decline on Thursday and drop from its recent highs on Nov 10 at around $69,000.

Ether joined the weaker camp as it fell to $4134 during the session and other cryptos joined the party, with Solana, Dogecoins and Shiba Inu falling on softer sentiments.

🎁Show me your True Colours

Understanding what lawmakers wishlist is difficult as opinions are all over the place. A more striking proposal was the DigitalAsset Market Structure and Investor Protection Act which would group cryptos as securities and subject to the oversight by the SEC. This would make digital assets a form of commodities, giving the Commodity Futures Trading Commission supervision.

However, Congress needs not act on Stablecoins yet because President Biden’s administration is working on some rules to help regulate the tokens and possible recommendations for the broader industry.

💡Republicans: Hugging on the Crypto

A Republican, Mike Lee from Utah, took a more constructive stance on Crypto, hoping that lawmakers will allow the technology to develop in the US and signaled Congress to avoid broad-based rules that target Cryptocurrency. After all, a poor regime may deter companies from developing useful blockchain technology and channel future talents to overseas markets. Hence, a “light touch” is perhaps what the industry needs.

Of course, the more prominent senator would be Ted Cruz. He has been a strong advocate of the crypto world and Bitcoin mining. Moreover, there is self-interest in this aspect since such activities are sprouting vibrantly in Texas. There is, therefore, a concern raised that the new infrastructure bill, which had included a broad definition of crypto “brokers” and required these entities to some reporting requirements on transactions, maybe a wish than a possible reality.

🗽Where we stand

The Congress would need lawmakers who have a deeper understanding of the technology before making an extensive regulation of the crypto world rather than implementing rules that are not feasible for implementation.

Pika World maintains and mildly increases exposure to the sector as we continue to navigate in the sea of volatility, which presents opportunities and challenges in our portfolio allocation.

We hope you enjoy this read.

Cheers,

Reporter Pika Nat.