Valerie Szczepanik, a Senior Advisor for digital assets and innovations with the Securities and Exchange Commission of the US is optimistic about the growth of the cryptocurrency markets because of proper regulations. During an interview at the SXSW Conference in Austin, Texas, Valerie commented that she sees a “crypto spring” approaching soon.
The term ‘crypto spring’ means a good time is coming for cryptocurrencies. Given that the period of a continuous price crash from 2018 has been termed “crypto winter”, a spring is eagerly awaited by the markets. During the interview, Valerie commented that the regulations that the SEC is coming out with are made to allow the innovations to flourish. She did point out that sometimes, new businesses may face some irregularities because of “the lack of bright-line rules.” She said:
“I do think if we hope to smell the crypto spring in the air, it will take people walking with the regulators. But I do think the spring is going to come.”
Valerie also commented on what she thought about stablecoins. She pointed out that there are two types of stablecoins, the first which maintain a fixed price (1:1 ratio stablecoins), while there are others where price fluctuates to keep another token’s price stable (algorithmic stablecoins). She pointed out that stablecoins might be categorized as securities by the SEC.
Is a Crypto Spring Really On Its Way?
While predicting cryptocurrency prices is always a risky guess, as the price can change due to any obscure factors, one can safely assume that the bottom of the barrel has already been reached. A Bitcoin price-rise is imminent, considering that the cryptocurrency trading volumes are on a constant rise. Furthermore, over the past two weeks, we have seen the price of Bitcoin (as well as a number of other cryptocurrencies) get extremely stable.
This stability is the calm before the storm. Bitcoin is gearing up to breach the target of $4,000 - which has been the line of resistance so far. It is likely that the $4,000 mark will be crossed before March ends and the “crypto spring” officially begins there.
This has been a prediction which many in the markets have been making for a while. However, hearing an optimistic statement from an SEC official is indeed another confirmation that a bull-run might soon be approaching! In the past, we have seen that the SEC’s decisions can be critical when it comes to the bears vs bulls equation in the markets. Will SEC’s new regulations help the markets? We’ll find out soon.
Stay tuned with us at Cryptoground for more updates and news stories from the world of cryptocurrencies and the blockchain technology!