A large new report by the US Treasury Department called for a more flexible and favorable regulatory approach to innovation in the fintech and blockchain sector.
The 222-page report on "Non-Bank Finance, Fintech and Innovation" only briefly affects cryptocurrencies and distributed-list technologies (DLTs) such as Blockchain, noting that they are currently being investigated separately as part of an interagency action carried out by the Supervisory Board's Working Group on Financial Stability. In general, the document indicates a strong impulse from the US government to support emerging financial technologies and modernize the existing regulatory framework to remove obstacles to their evolution.
Noting that interest in the crypto assets of financial authorities around the world has increased significantly, the Ministry of the Treasury points to the special efforts of the G20 group to identify appropriate indicators for monitoring the newly emerging sector. The Treasury Department also recognizes a number of DLT applications developed by the financial services industry - though it notes that their services are still very uncertain.
In addition, the Ministry of the Treasury supports the use of regulatory sandboxes and encourages the creation of laboratories, working groups, innovation offices and other channels for industry players that would allow them to directly cooperate with regulators. A symbiotic relationship between regulators and innovators is needed to support the US economy and maintain global competitiveness.
This last message echoes the fears recently expressed by the president of the US Commodity Futures Commission (CFTC), which said that the US is lagging behind other countries in promoting innovation. The CFTC president noted in particular that the agency has no legally compliant procedures that would allow it to participate directly in the proof testing Proof-of-Concept (PoC), even though it created a dedicated LabCFTC to promote innovation in fintech.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has retraced 38% of the previous swing up and currently, is bouncing from the level of $7.405. The nearest technical resistance is seen at the level of $7,755 and only if this level if clearly impulsively violated, the bulls might regain the control over the market. Moreover, please notice the whole downward structure is corrective in nature, so there is a chance for an impulsive rebound higher.
