Bitcoin did not find enough support on the $ 4000 to continue the uptrend but still managed to hold on to the level, keeping itself above the last peak of $ 3900.
Such behavior does not violate an upward overview and looks like a small correction before the uptrend continuation. The $ 4400 zone is called the next strong resistance for the upward scenario (the middle of pointed yesterday main levels $ 4300 and $ 4500). From the below we have $ 3900 level, which supports the bullish scenario and $ 3500 – $ 3700 zone below it, crossing of which will bring back the bears.
Trading Bounds: $ 3900 – $ 4400.
🔹 Token Taxonomy Act
On December 20, Republican Warren Davidson, a congressman from Ohio, and Democrat Darren Soto of Florida presented to the Congress the Token Taxonomy Act. If the bill will gain power, then cryptocurrencies will cease to be a phenomenon that the SEC has the right to regulate.
This means that digital currencies will be freed from the dictates of the Commission, with its archaic views on the nature of the “security”. The definition of “security”, which operates the SEC, formed more than seventy years ago. According to CNBC, the new law, which, remarkably, was developed by representatives of America’s two main competing political camps, contains the definition of “digital securities”. This is extremely important since so far virtual currencies do not have an unequivocal legal status.
CNBC quotes Congressman Davidson, who recently proposed to the United States the help of an ICO to finance the construction of a wall on the border with Mexico, which said:
“At the dawn of the Internet, Congress passed laws that provided clarity and prevented the temptation to “regulate” the market. We intend to achieve a similar victory for the American economy and guarantee the leadership of the United States in this innovative sphere.”
If the bill is approved, the cryptocurrency community will sigh with relief. Although one SEC official suggested that bitcoin and ethereum are not securities, their status, as well as the status of other cryptocurrencies – XRP, etc. – is still uncertain, not to mention the hazy future of possible Bitcoin ETFs.
The congressman took a step forward, compared with his colleagues, trying not only to define Bitcoin but also to show what a digital asset is not.
Employees of the Davidson team told reporters that the text of the bill is not yet available, and soon representatives of the congressman will make an official statement.
Davidson has a reputation as a “friend of cryptocurrency”, advocating a “soft” approach to blockchain regulation. He seeks to prevent technological espionage from China and other countries, and not allow American technology to “leak” from the country, and also intends to protect Americans from fraudulent ICO projects.