The SEC chairman sympathizes with bitcoin, but he says that there must be stronger regulations to protect users. Gary Gensler hints at the possibility of Bitcoin ETFs receiving approval.

The president of the United States of America Securities and Exchange Commission (SEC), Gary Gensler, spoke openly about his position on bitcoin (BTC), the regulation of cryptocurrencies, and exchange-traded funds or ETFs.

Among other things, Gensler clearly said that solid regulations are vital because there would be more protection for investors who have been storing their cryptocurrencies in digital wallets.

In that sense, Gensler assures that he is intrigued by bitcoin, although he is neutral on the matter. Gensler gave lessons on how to use cryptocurrencies and blockchains at the Massachusetts Institute of Technology (MIT) before taking office at the SEC.

Gensler says that he would not remain neutral about investor protection. His interest in bitcoin does not mean that he is ok with the supervision without intervention that many enthusiasts would like to experience.

The official also took the chance to send a clear message to speculators saying that, If someone wants to speculate, that is their choice, but the SEC has the sole duty as a nation to protect investors against fraud.

An opinion similar to Gensler’s, also coming from the SEC, states about Commissioner Hester Peirce. The official believes that a shy attitude about Bitcoin would harm investors.

Gensler and Bitcoin ETFs

The official also spoke about the long-awaited bitcoin ETFs in the United States of America. Large banks and financial institutions have requested a fund with exposure to the leading cryptocurrency, but they have not received a favorable response from the body.

In this regard, Gensler explained that there is a possibility that they will receive approval, but specifically under the mutual fund rules of the SEC, and that they focus on bitcoin futures, rather than the cryptocurrency itself.

According to Bloomberg, the SEC chairman has pushed for analysis to make several possible policy changes in this area. The agency does not look with friendly eyes at the exchange-traded funds due to alleged risks of market manipulation fraud.

The organization is studying initial coin offerings, trading venues, loan platforms, decentralized finance (DeFi), stablecoins, custodial services, ETFs, and other cryptocurrency funds.

DeFi concern

Gensler showed concern about the new ways that people are using to access cryptocurrencies. One of these ways is through decentralized finance platforms (DeFi).

The chairman said that if companies are advertising a specific interest rate yield on a crypto asset, that could put the loans under SEC supervision.

It is vital to consider that many DeFi platforms are not companies. These platforms are simply a smart contract uploaded to the network, sometimes by anonymous and unregistered developers in any jurisdiction. That would obstruct any regulatory attempt to find completion.

Gensler also spoke to Bloomberg about some other digital asset investment platforms; they could be considered some kind of mutual funds.

By: Jenson Nuñez

The initiative intends to fill the regulatory void that has persisted in the country so far.

Legislator Toro ensures that the proposal does not antagonize the regulatory sandbox.

Congressman Mauricio Toro revealed on August 3rd that his proposal for a Law to regulate the cryptocurrency environment such as bitcoin got back to the Colombian Congress. For two years the initiative pushed the need to bring a legal framework to an industry with massive adoption in the country.

Toro wrote on their Twitter account that they would create a very solid regulation to trade crypto assets and close the doors to black markets. This regulation also brings alternatives to the banking system and guarantees security in transactions.

Last year the proposal was waiting for a concept to arrive from the Financial Superintendence of Colombia (SFC), which delayed the start of the four debates to approve such a law.

At that time, the SFC’s intervention raised many chances of altering the version of the project, as the regulatory authority clarified that it did not recognize cryptocurrency service operators. However, the landscape started to show signs of change in mid-2020 when the country opened applications to test bitcoin in a regulatory sandbox.

The bill that emerged from discussions with organizations, and private entities is returning to Congress with more solid arguments to pave its way to become a law.

For this new legislative cycle, modifications were the subject of studies respecting those that appeared in the proposal. There is a recognition of the efforts of the regulatory sandbox with which it does not contradict itself.

The Goals behind this Bill

The bill presented by Mauricio Toro shows crypto assets as a new method to complete exchange for goods and services that cannot be seen as legal tender, nor currencies, nor titles representative of legal tender.

The proposal possesses 14 articles, including preventive measures against money laundering. In this sense, cryptocurrency service providers that operate in the national territory must comply with a series of requirements. These articles add registration procedures in the Single Registry of Crypto Active Exchange Platforms, which will meet its creation if the law receives approval.

Likewise, the initiative adheres to restrictions on exchanges to prevent scams. They will not offer or pay interest or any other monetary benefit for the balance they could gather over time. Nor will they be able to develop multi-level marketing activities.

A Regulation for Bitcoin in Colombia

One of Toro’s concerns is the slowness with which the Government of Colombia has managed the regulation of the cryptocurrency sector. Toro points out that the initiatives move slowly due to the Presidency and its work on the proposal.

The leader of the Innovation Group of the Financial Superintendency, Laura Clavijo, has already clarified that the regulatory sandbox focuses its efforts on entities being under supervision by the SFC.

Although the regulatory sandbox is trying to accommodate those entities it does not supervise until now, such as the exchanges, the regulatory framework will also set up an update to include cryptocurrencies.

By: Jenson Nuñez

Brian Brooks, who worked as the Comptroller of the Currency of the United States of America during the administration of Donald Trump, resigned as CEO of Binance.US on August 6.

The information came from Brian Brooks himself through a tweet he published on his Twitter. Although the message did not delve into why Brooks left the position, it indicated some differences in the strategic direction within the platform. He also took the opportunity to express his good wishes for the entire team.

Brooks’s departure was confirmed with the following words of the former manager, but without explaining the causes of the resignation.

Brooks said that he remains confident in Binance.US, and its commitment to bring innovative services to its customers. As one of the largest cryptocurrency exchanges in the United States of America, Binance.US seals a compromise to keep empowering the future of finance.

A Sudden Departure

The note also highlights that the transition would not affect either customers or the operation of Binance.US at all. He added that the company would keep providing the best products and services.

The news surprised many community members, considering that Brooks had taken over as head of Binance.US just over three months ago.

In April of this year, his appointment came to the public. The new executive, who was also a Coinbase executive, said he was committed to working with industry players and legislators to release an enduring regulatory framework that would allow all Americans to reap the benefits of decentralized finance.

In an interview led by Forbes, and published a few weeks ago, the executive explained he had an expansive vision for Binance.US, which went far beyond operating a cryptocurrency exchange. He also spoke about the efforts he was going to make to build greater platform independence.

Brooks served as the currency’s comptroller from May 2020 to January 2021, when Donald Trump’s term reached its end. During that time, he was interested in building a favorable regulatory environment for cryptocurrencies. He became known in the ecosystem as a part of the select group of US regulators who show their support stance about bitcoin.

Another Change in Binance Would Feed the Obstacles it Experiences in Several Countries

Binance, the exchange with the highest volume of trading worldwide, has various operational problems beyond the United States of America, particularly in European nations such as the United Kingdom, and Italy.

In early July, the exchange site went through various regulatory hurdles in at least six countries. These hurdles included Singapore, Thailand, the Cayman Islands, Japan, China, and Malaysia.

It is worth remembering that Binance.US is a platform that is part of the group, but it only operates in the United States of America. It was created in 2019 to work with that market. Binance intended to adapt to the regulations of that country, given the difficulties that arose at the regulatory level.

By: Jenson Nuñez

The movements of altcoins depend on those of the leading cryptocurrency, whose dominance stands at 46.39%. It rises during bullish runs, as people bet on it as the most traditional currency.

The dominance of Bitcoin over altcoins grows alongside the recent rise in its price. The value of the first cryptocurrency on the market fell from USD 42,000 to USD 37,000. However, its performance remains high compared to the previous months, which stagnation and low volatility marked.

Predicting the direction of the price of Bitcoin is complex, but websites like that of EQI say it could resume the rally. However, its price continues to lose ground, which could cause a sell-off.

There is no certainty about the current price of Bitcoin, but the increase in its supremacy over the other cryptocurrencies is evident. The growth of the pioneering cryptocurrency in this period has allowed it to reach the highest dominance since May 21^st. On that date, it was at 50.33%, from where it fell. In recent days, it reported a level of 49.36%, which indicates that it is recovering.

What the Dominance of Bitcoin Represents in the Market

The dominance of Bitcoin allows estimating the level of importance of the cryptocurrency in this market. As it is the first cryptocurrency, it stands as a leader, so altcoins depend on its movements. In other words, the rise or fall of the price of Bitcoin quickly infects the entire market.

The dominance of the pioneering cryptocurrency stands at 46.39%, which means it is high, according to data from TradingView. The second cryptocurrency behind Bitcoin is Ether, which occupies 18%.

This index tends to decline historically due to new projects that capture the attention of crypto enthusiasts. The strengths of other blockchains, such as scalability and better fees, lead some users to exchange their Bitcoin for other cryptocurrencies.

However, it is unlikely that another cryptocurrency will succeed in displacing the dominance of Bitcoin. The reason for this is that the community regards the crypto asset as a store of value. The number of Bitcoin users has grown steadily since June, from 100 million to 200 million.

The Bitcoin Dominance Index Rises at Certain Times

The dominance of Bitcoin in the market tends to decline as other cryptocurrencies mature. However, it rises again during some bullish runs, as people play it safe and bet on the most traditional cryptocurrency: Bitcoin.

During the bullish run of late 2020 and early 2021, the Bitcoin dominance index reached 72.70%. In other words, that of the other cryptocurrencies as a whole was 27.30%. During periods of low volatility, like now, people look for ways to keep up with the growth of their capitals. For example, they turn to DeFi or trade cryptocurrencies to achieve that goal.

The growth of the dominance of Bitcoin could suggest that its price is preparing to climb. Although the current price remains in a bearish state, it could be a simple correction.

By Alexander Salazar

Musk said that Tesla would again accept Bitcoin payments for its cars if miners used at least 50% renewable energy. He noted that his company seeks to help reduce carbon dioxide emissions but needs to do due diligence.

Elon Musk, the CEO of Tesla, recently stated that Bitcoin might have reached its benchmark for renewable energy. The executive said he wanted to confirm that the percentage of renewable energy miners used was above 50%.  He believes that there is a high probability that this proportion will continue to increase.

Curiously, Musk said that Tesla could once again accept Bitcoin as a means of payment for its electric cars. He noted that the condition would be that Bitcoin mining uses at least 50% renewable energy.

In May, Musk announced that the company that he leads would stop accepting Bitcoin payments. He argued that the network was increasingly using fossil fuels, which was harmful to the environment.

However, the businessman clarified that Tesla would resume BTC transactions if miners used more than 50% clean energy. In that sense, he added that this pointed to a positive future trend.

Bitcoin is on the Way to a Greener Future

Elon Musk suggested that the cryptocurrency industry was on its way to a greener future. However, he said that his company would not yet accept payments with the pioneering cryptocurrency.

The billionaire entrepreneur spoke with Jack Dorsey of Twitter, Cathie Wood of Ark Invest, and Steve Lee of Square Crypto. He said that Tesla would most likely consider resuming Bitcoin payments for its vehicles. However, he noted that they needed to do due diligence before deciding on this.

Musk sees a positive trend in energy consumption by Bitcoin miners. He explained that there was no way to double or triple the amount of energy with renewable sources in such a short period.

He stated that his company seeks to accelerate the use of sustainable energy and thus reduce the emission of greenhouse gases. The businessman said that his company could not do that without due diligence regarding the energy consumption of Bitcoin.

Furthermore, he believes that Bitcoin is shifting much more towards renewable energy. He highlighted that the Chinese government has shut down many misused carbon-heavy plants.

What Has Tesla’s Purchase of Bitcoin Been Like

Tesla bought USD 1.5 million worth of Bitcoin in the first quarter of this year. Besides, it began accepting the cryptocurrency as a means of payment in March but stopped in May, arguing environmental concerns. However, Musk recently said that the company might resume accepting Bitcoin if miners use more renewable energy.

Musk said that his financial success depends in part on the performance of that cryptocurrency. He said that he lost money when the price of Bitcoin went down. Furthermore, he claimed that he did not believe in raising the price and selling but would like Bitcoin to succeed.

This entrepreneur and investor has influenced the performance of Bitcoin and other cryptocurrencies in the last few months. Recent comments from him have helped the price of the pioneering cryptocurrency return to the USD 40,000 level.

By Alexander Salazar