Why 6th of February is extremely important for the cryptocurency market?
On the 6th of February, the heads of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (SEC) are set to testify on cryptocurrencies during a U.S. Senate hearing.
What does it mean?
SEC Chief Jay Clayton and CFTC Chief J. Christopher Giancarlo set to appear as witnesses during the hearings at The Senate Committee on Banking, Housing, and Urban Affairs. The major topic of the hearing is: "Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission"
Both Clayton and Giancarlo support ICO and cryptocurrency "investment" regulation.
What is Senate hearings and why is it so important?
The primary goal of any committee during the hearing is to collect and analyze information in the early stages of legislative policymaking. If The Senate Committee on Banking invites SEC and CFTC Chiefs, it's clear that US legislators are very interested in cryptocurrency market regulations.
As we might previously noticed, news about ICO regulations in Korea and China caused serious market panic-sell and corrections. Again, we can't say for sure the outcome of the hearings but it's logical to assume that we might see further ICO restrictions and regulations of the market as it's the nature of the government to regulate things.
Does it mean that it will completely crash Bitcoin? No, absolutely not. Will it prevent market recovery? - Very possible that it will contribute to the bear market strength, blocking bulls from any active actions.