Securities laws ‘may apply’ to token sales – July 26, 2017

Bitcoin price continues to hover around $2500 on Wednesday. Uncertainty remains over whether or not Bitcoin can avoid a split. Although the price at one point crossed $2600 mark, but once again failed to show any bullish momentum — which indicates investors are still not convinced to buy Bitcoin to take it to new highs.

If Bitcoin doesn’t get enough support from buyers and this bearish pressure remains, it could potentially test next support levels at $2300 and then $1850 before August 1st. Relative Strength Index (RSI) is also going lower to confirm that sellers are in control of the market at the moment.

We saw the return of bull market when BIP 91 was locked in. There is a good chance buying pressure will make a comeback once the network upgrades to Segwit [0] or Segwit2x [1], without splitting the chain on August 1st.

Top stories from the crypto world

1. SEC said US securities laws ‘may apply’ to token sales

The US Securities and Exchange Commission on Tuesday the offering and sale of digital tokens “are subject to the requirements of the federal securities law.” In its statement, the agency revealed that it had been investigating the issuance of tokens connected to The DAO hack [2].

The SEC considers the DAO and ICOs in general to be securities and subject to securities law. This means any startup or person issuing tokens in the United States must register with the SEC first. It may also mean exchanges trading them in the US must be registered as well.

Surprisingly, there was no drastic movement in Ethereum price after this news. It was tanking before the SEC announcement and still continues to tank around $200.

Additional Reading:

2. Bitcoin To Cross $3,600 Bracket: Goldman Sachs

Going against the bearish look for the current value of Bitcoin, Sheba Jafari, Chief Technician at Goldman Sachs today told its clients that Bitcoin might reach a new high of over $3,600 very soon. According to Sheba, bitcoin “may need another few swings” before the trend continues.

In the past Jafari has been spot on with her analysis. In early June she suggested Bitcoin wouldn’t fall too far below $1,857. A few weeks earlier, Jafari also predicted a big drop after Bitcoin price hit $3000.

3. Abra partners up with American Express

Buying Bitcoin with credit cards has always been a pain. Abra, an app that lets you transfer money worldwide at zero fees, is looking to put that inconvenience to rest by letting customers buy Bitcoin with eligible American Express Cards. If you’re one of the users whose American Express purchase option is enabled, you can purchase up to $200 worth of Bitcoin, and up to $1,000 of bitcoin per month for a 4 percent fee.

Abra has to become effectively an American Express processor internally in order to do this, because we’re processing directly with American Express. There’s no third-party acquirer in the middle.” Bill Barhydt, founder and CEO of Abra said yesterday.

[0]: Segwit is a scaling proposal by Bitcoin Core that looks to solve the network congestion without increasing the blocksize.

[1]: Segwit2x is another scaling proposal backed by the miners that wants to scale the Bitcoin network by increasing the blocksize to 2MB

[2]: The DAO or Decentralized Autonomous Organization was the ethereum-based funding vehicle that collapsed dramatically last summer following an exploit of a flaw in its code, resulting in hacker(s) stealing over $60 million worth of tokens and an eventually forking Ethereum into two; ETH and ETC.

Leave a Reply

avatar