[Bitcoin Now] 'Cryptocurrency as Commodity, Not Security'... US Senate Introduces Bill for CFTC Jurisdiction, Prices Rise

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices rose after a bill was introduced in the U.S. Senate that classifies virtual currencies as commodities rather than securities and designates the Commodity Futures Trading Commission (CFTC) instead of the U.S. Securities and Exchange Commission (SEC) as the regulatory agency.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:03 a.m. on the 8th, the price of Bitcoin was $31,101 (approximately 39.03 million KRW), up 5.31% from the previous day.

Bitcoin prices rose on news that the "Responsible Financial Innovation Act" was introduced in the U.S. Senate. Cryptocurrency-focused media outlet CoinDesk reported that Bitcoin prices increased as the bill was expected to resolve numerous regulatory issues that have troubled the industry. The Innovation Act primarily views virtual currencies as closer to commodities than securities and designates the CFTC as the regulatory authority.

Until now, the cryptocurrency industry has criticized the SEC for focusing more on penalizing illegal activities rather than establishing clear regulations. SEC Chair Gary Gensler has maintained the stance that the cryptocurrency market should be regulated by the government in the same way as the stock market and must comply with SEC requirements. Therefore, it is known that the cryptocurrency industry has lobbied for the CFTC to oversee the cryptocurrency market.

Additionally, the rise in the U.S. stock market also appears to have boosted Bitcoin prices. The Nasdaq Composite Index, which is technology stock-centered and showing synchronization, closed at 12,175.23 on the 7th (local time), up 113.86 points (0.94%). The Dow Jones Industrial Average rose 264.36 points (0.80%) to 33,180.14, and the large-cap S&P 500 Index closed at 4,160.68, up 39.25 points (0.95%). Although retailer Target warned that its operating margin could shrink in the second quarter due to inventory reduction, the 10-year Treasury yield fell below 3%, contributing to the upward trend.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded a level of 38.75 on the day, indicating a "Fear" stage. This is a 0.24 increase compared to 38.51 (Fear) the previous day. Dunamu's Digital Asset Fear & Greed Index is divided into stages of "Extreme Fear (0?20)," "Fear (20?40)," "Neutral (40?60)," "Greed (60?80)," and "Extreme Greed (80?100)." The greed direction indicates increased interest in buying by market participants, whereas the fear direction reflects a fear of asset decline, leading to market exits and a chain reaction of price drops.