Bitcoin and Stablecoin Regulation

[blockrevs]

I believe the SEC has been given the approval to oversee Stablecoins.

Any dates or information on when this could happen and what it would look like?

What are the possible effects on bitcoin price? Could the price possibly shoot up if everyone is forced out of stablecoins?

I feel there will be something that causes a decline in bitcoin nearterm, this cycle has been longer than any other already and it makes sense with inflation and pandemic monetary policy basically bankrupting fiat.

Are any of these factors relevant and what do you think will cause the drawdown in BTC?
Fed forced to tighten interest rates to fight inflation, a mess up in monetary policy management causing disruption in the global market, war, the new futures etf, mt gox.

Thanks!

[jackg]

I kinda think regulating stable coins might deregulate some - especially if there are anonymous devs on some projects.

There are lots of different stable coins and lots of different ideas on how to make them successful, including fully decentralised ones, so I think regulation. Will probably increase those being adopted and other coins not being as worthwhile, but I think some might be an exception to that as long as centralised exchanges keep accepting them for futures (like binance).

[DapanasFruit]

Regulation on stablecoin can  be working well for the whole cryptocurrency industry because those organizations behind stablecoins will be forced to be transparent all the time or be risking a steady flow of penalties just like what we saw with USDT slapped with fines for violations of the supposed rules as defined by SEC. I am not seeing actually a motive to kill stablecoins because for now there is no reason for that. Stablecoins can be a big source of tax revenues for the government if the SEC is going that way...and I know that it will be. In summary, there is no direct cause and effect between stablecoin and Bitcoin, that is for now.

[pooya87]

Any dates or information on when this could happen and what it would look like?

I don't care a centralized government entity in one country does to a bunch of centralized shitcoins.

What are the possible effects on bitcoin price? Could the price possibly shoot up if everyone is forced out of stablecoins?

Did bitcoin price shoot up when a lot of countries around the world banned ICO scams? This would be the same. Altcoins and what happens to them has no effect on bitcoin, specially when they are centralized altcoins.

I feel there will be something that causes a decline in bitcoin nearterm,

We can never predict what they panic-y newbies are going to do. They may start panic buying!

this cycle has been longer than any other already

No it has not. It is not even as long or as big as the previous one.

[OgNasty]

I was reading about the sudden support for stablecoins and the positive words being spoken about them.  The internet had the funniest response.  For a while USDC was trending on twitter with people all making fun of the situation by saying USDC was going to $1.50 and to buy a bunch soon...  This was funny to me for a few reasons.  It makes fun of all the ridiculous claims people are making about shitcoins but moreso I found it ironic that the thing that makes it so great "being stable" is also what makes it useless for the current crowd entering crypto.  They care about getting rich, not utility.  Stablecoins are worthless to these people, but you know some folks bought thinking they'd see it spike 50%...

[davis196]

OP,your post is all over the place.
What's the link between SEC overseeing stablecoins and the monetary policy of central banks?
The "pandemic monetary policy" won't lead to the bankrupt of fiat money.There will be high inflation,but all the gossips and propaganda about upcoming hyperinflation are just ridiculous.Fiat money will survive.
I have nothing against the SEC regulating all stablecoins.The Bitcoin FUDsters keeping repeating this argument,stating that the stablecoins like Tether might be a big bubble backed by nothing and this big bubble is pumping the Bitcoin price and turning BTC into a big bubble.Let's see if the SEC can prove that stablecoins are actually a big "fractional reserve" bubble.

[hugeblack]

Which regulation are you talking about? Many stablecoins are subject to laws that enable them to freeze your assets at any time. Therefore, even if those currencies are in your wallet, they can freeze them. Therefore, the occurrence of regulation requires only legal procedures.
Most stablecoins are on centeral networks and subject to the regulations of the countries in which the platform is listed and therefore easy to regulate.
Some decentralized  stablecoins may be a problem.

[mk4]

Any dates or information on when this could happen and what it would look like?

It's currently a sort of tug of war situation. If ever such a law were to be proposed, it will be war. The likes of Coin Center would be challenging the SEC. And if it were to pass through, I think it would take a few years to take effect.

What are the possible effects on bitcoin price? Could the price possibly shoot up if everyone is forced out of stablecoins?

A temporary price increase for BTC and ETH, because if people would be scared of stablecoins, where would the money flow to? The 2 most liquid cryptocurrencies. Mid-long term though, probably a bit bearish because people might expect worse regulations for other cryptocurrencies.

Are any of these factors relevant and what do you think will cause the drawdown in BTC?

Fear.