Aug 11, 2019
SEC Decision - 19 August 2019 Bitcoin Regulation in the New York Stock Market
· The SEC, the US Securities and Exchange Commission, will decide on the start of Bitcoin regulation on the New York Stock Market on the 19th of August 2019.
· This event is recognized by global traders as a major trading event in the Bitcoin and crypto markets.
· If the SEC regulates Bitcoin, the door to more institutions, such as pension funds, to buy Bitcoin on the New York Stock Market, will be opened. For example, those with pension portfolios in the US, such as the 401k, will then be able to buy Bitcoin through their pension funds. This is then likely to push the price of Bitcoin higher.
You are currently not able to buy Bitcoin through a pension fund since it is illegal for these funds to open digital wallets and to buy Bitcoin and other digital coins.
If Bitcoin is regulated by the SEC, Bitcoin demand without any wallets is likely to increase.
Before the decision takes place on the 19th of August, the demand for the crypto is likely to increase in anticipation that this crypto will be regulated.
While the SEC decision is scheduled for the 19th of August, this decision can be delayed again to, not later than, the 18th of October 2019.
Interestingly, even is the SEC does delay their decision, the price of Bitcoin price is not expected to drop sharply. If the SEC does go ahead on the 19th of August and regulates the cryptocurrency, massive upside momentum could be generated.
With this in mind, it is evident that the upside potential for Bitcoin is higher than the downside risk.
Information on the SEC
The SEC, or the US Securities and Exchange Commission (SEC), is the commission which is responsible for regulating the US stock market. This includes ETFs (Exchange Traded Funds) such as the NASDAQ, the Dow Jones, and more.
There are 5 members that make up the SEC and they are responsible for voting for new rules and regulations. So far, only 2 out of these 5 members have a positive approach to Bitcoin.
Based on this, the big question is if there will be a majority in the SEC that supports regulating Bitcoin?
About the Regulation of Bitcoin
Bitcoin is a digital currency. That is, it is not a stock and it, therefore, does not belong to any company, government or entity. If the SEC regulates Bitcoin, it will become regulated as an ETF (Exchange Traded Fund). Bitcoin will then be regulated in the stock market, in the same way as, for example, the NASDAQ and the S&P 500.
It is important to note that the minimum investment amount, however, could be above $200,000.
This high, minimum investment amount could be a way to attract bigger investors, such as pension funds and other institutions.