As Live Bitcoin News reported earlier, bitcoin is now trading for over $10,500 after falling to roughly $9,600 just two days ago. One of the items to emerge from the shadows that may have contributed to bitcoin’s fall is Steve Mnuchin, who claimed that bitcoin was headed for “strong regulation” in the United States. In examining the cryptocurrency’s sudden rise over a 24-hour period, one can’t help but wonder if Mnuchin’s words helped the coin rebound somewhat.
Mnuchin: More Regulation Is Heading Our Way
As we all know, regulation has been a hot topic in the space for several years. Many institutional players have expressed interest in the world of crypto trading but have failed to enter it out of fear that their assets will be stolen or hacked thanks to the ongoing lack of regulation. Mnuchin’s comments could finally be making many more of these institutional investors come out to “join the party.” Without fear, they can invest appropriately, which will undoubtedly boost bitcoin’s price.
Recently, the Treasury Secretary issued a statement further explaining the kind of regulatory waves traders within the U.S. can look forward to. He explains:
We’re going to make sure that bitcoin doesn’t become the equivalent of Swiss-numbered bank accounts, which were obviously a risk to the financial system… I want to be careful that anybody who’s using bitcoin – regardless of what the price is – is using it for proper purposes and not illicit purposes, and there are billions of dollars of transactions going on in bitcoin and other cryptocurrencies for illicit purposes.
Mnuchin, for the most part, seems open-minded to bitcoin’s use. When questioned about whether illicit transactions make bitcoin an illegitimate cryptocurrency, he explained:
I don’t think that’s accurate at all. Cash is laundered all the time. We combat bad actors in the U.S. dollar every day to protect the U.S. financial system.
In many ways, Mnuchin appears to be comparing bitcoin’s properties to those of fiat.
It seems the tables have turned somewhat for bitcoin in terms of organization-based and corporate attention. For example, many analysts and financial platforms have stated in the past that putting any energy or money into bitcoin was a mistake, and that funding blockchain ventures was the smarter thing to do.
However, as of late, funding in blockchain-based businesses has dropped dramatically. Many have turned to bitcoin enterprises given the currency’s recent price spikes, which began in April of this year. In addition, large companies are being virtually ignored by hedge fund managers and others who provide financing to new businesses, while startups are presently all the rage.
Everyone Has Suddenly Forgotten About Blockchain
Nicholas Pappageorge, senior analyst at CB Insights, explains of blockchain companies:
It took a little bit [of time] for the enthusiasm to wear off.