[2018-06-10] Forbes: Regulatory Concerns Dampen Bitcoin Volatility

[tyz]

Regulatory Concerns Dampen Bitcoin Volatility

While cryptocurrency markets have received some regulatory updates this week, the widespread uncertainty surrounding how government agencies will treat these assets going forward has hindered Bitcoin trading, reducing volumes and clamping down on volatility.

https://www.forbes.com/sites/cbovaird/2018/06/08/regulatory-concerns-place-damper-on-bitcoin-volatility/#2ee116828bd8

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[kaitleen91]

The greater the volatility, the greater the opportunity to earn. Including futures and options. Thus, along with the decrease in volatility, the yield will inevitably fall.

[richardsNY]

I don't really understand why people can't accept the SEC's stance when it comes to securities. It doesn't and shouldn't matter what it is today -- you can't change the fact that the initial stage will label certain coins as securities for ever. The SEC said that it will not change anything in this regard, and especially not just to suit the crypto community. Ethereum is a security, and it should be treated as such. I just wonder how the SEC is going to patrol the crypto market to make sure every exchange accepting US registrants doesn't offer these securities to them without being compliant....

[squatter]

I don't really understand why people can't accept the SEC's stance when it comes to securities. It doesn't and shouldn't matter what it is today -- you can't change the fact that the initial stage will label certain coins as securities for ever. The SEC said that it will not change anything in this regard, and especially not just to suit the crypto community. Ethereum is a security, and it should be treated as such.

I'm not sure it's that clear-cut. I haven't seen a convincing argument yet that Ethereum passes the Howey Test:

(1) Investment of Money; (2) Common Enterprise; (3) Expectation of Profits; and (4) Solely from the Efforts of Others.

Whether something is an ICO only speaks to the "investment of money" and "common enterprise" aspects. It's crucial that there is an expectation of profit based solely from the efforts of others.

Ethereum seems to fit a grey area because it was not a money-making venture and as I recall, it was not marketed with an expectation of profit based on the issuers' efforts. I'm guessing there's also a distinction between a tokens issued on a centralized platform (like "Munchee") vs. a decentralized platform (like Ethereum). On the latter, the success of the platform largely depends on distributed miners and users, the viability of POW, etc. So any profit derived from the ICO would not be due solely to the efforts of the Ethereum founders.

[acheampong64]

It seems everyone is relating the fall to this issue. Is it because people are thinking the exchanges are gonna get shut down and so they're selling off, or this is another market dump?

[timerland]

I personally don't see anything that SEC is doing or does as relevant to promoting stability. I simply don't see anything that would suggest that, to be honest. The regulation on crypto ICOs right now is already pretty strict, so anonymous investors pretty much don't have a chance anyways at the moment.

Anyways, I honestly think that whatever SEC's position on ICOs are quite irrelevent when it comes to bitcoin price. Bitcoin isn't even involved in these ICOs whatsoever, and instead is a currency of its own. The reason why we are not seeing as much movement in the market is that there was a period of consolidation after each and every dip, it's pretty much that.

The article also says that the author expects a breakout to the $10k level, which imo isn't going to happen any time soon.

[darkangel11]

The greater the volatility, the greater the opportunity to earn. Including futures and options. Thus, along with the decrease in volatility, the yield will inevitably fall.

Only for speculators. Holders will keep on holding and buyers will keep on buying. In reality the charts don't mean anything because behind the scenes everyone is doing their thing. Day traders are making money, businesses that accept cryptos are making money, miners are making money. I wouldn't even worry about the governments if you saw the opinion that CTFC has recently published.