Coming off its best week in three months, bitcoin is giving back some of its gains dropping roughly 7% since Friday below $40,000, while regulators have started commenting on the future of crypto.
The SEC will likely regulate cryptocurrency markets to the maximum extent possible using its existing authority, according to Chairman Gary Gensler, while also calling on Congress to grant the agency more scope and resources to oversee the sector.
He also gave what may be the strongest sign of support yet from the agency for a Bitcoin exchange-traded fund, although he did show favoritism towards a bitcoin futures ETF to debut first.
Gensler also believes the vast majority of crypto tokens and initial coin offerings (ICOs) violate U.S. securities laws.
The limited market impact so far might stem from the new crypto bill’s implementation being a long ways off. The measure still needs to be negotiated in Congress and signed by President Joe Biden, and it wouldn’t become fully effective until 2023.
Stock futures traded slightly lower leading into Wednesday’s opening bell after closing higher yesterday, with investors' optimism over rebounding corporate earnings.
U.S. stocks advanced broadly Tuesday as money managers seem to be counting on continued support from central banks and economic data that still shows growth to further support markets.
Household debt rose by its highest dollar amount in 14 years during the second quarter, thanks mostly to a surge in the housing market that brought the collective American IOU to just shy of $15 trillion.