[Bitcoin Now] New SEC Chair's "Resolving Regulatory Uncertainty" Remarks Spur Rebound to 58 Million Won Range

Bitcoin Hovering Around 55 Million Won Surges to 58 Million Won in a Day
Gary Gensler, US SEC Chairman Nominee, "Will Establish Clear Guidelines"

[Asia Economy Reporter Gong Byung-sun] Bitcoin, the leading cryptocurrency that had been stagnant until the previous day, rebounded to the 58 million KRW range. This appears to be due to growing expectations for the resolution of regulatory uncertainties after Gary Gensler, the nominee for chairman of the U.S. Securities and Exchange Commission (SEC), announced plans to establish clear guidelines for applying securities laws to Bitcoin.

According to Upbit, a domestic cryptocurrency exchange, as of 10:40 AM on the 4th, Bitcoin recorded 58,787,000 KRW, up about 1.5% compared to the previous day. It had been hovering around the 56 million KRW range since the 1st but surpassed 58 million KRW around 7 PM the previous day.

Gary Gensler, the nominee for chairman of the U.S. SEC, is interpreted to have had a positive impact by stating his intention to eliminate regulatory uncertainties. According to Bloomberg, a U.S. economic media outlet, on the 2nd (local time), Gensler said at the U.S. Senate confirmation hearing, “Bitcoin investors are often exposed to fraud and manipulation,” but added, “As Bitcoin is rapidly evolving, the SEC will provide clear guidelines and standards.”

Gensler’s stance differs from that of former SEC Chairman Jay Clayton, who resigned in November last year. Unlike Gensler, Clayton did not set standards for Bitcoin but only indicated the possibility of violating securities laws. In 2019, appearing on CNBC, a U.S. economic media outlet, he expressed a negative opinion, saying, “Unless measures to prevent price manipulation are established, Bitcoin exchange-traded funds (ETFs) cannot be approved.” Since 2018, the SEC has rejected all Bitcoin ETFs citing concerns over price manipulation.

Meanwhile, the cryptocurrency market has consistently desired the elimination of regulatory uncertainties. It has argued that if regulatory uncertainties disappear, it could be incorporated into the institutional framework in the long term. Previously, in 2018, Julian Hosp, a cryptocurrency expert and former CEO of TenX, said, “Cryptocurrency regulation causes significant short-term damage but is necessary for market trust.”

There are predictions that the cryptocurrency market will rise again due to expectations of resolving regulatory uncertainties. On the 2nd (local time), Cointelegraph, a cryptocurrency specialized foreign media outlet, analyzed that there is a high possibility of reaching new highs given the rapid recovery. As evidence, it cited the decline in the U.S. 10-year Treasury yield. On the 25th of last month (local time), the U.S. Treasury yield exceeded 1.5%, but on the 2nd, it fell to 1.415%.