TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Mark Zuckerberg (Zuck) will testify in front of US lawmakers over Facebook Coin Libra worries. SEC rejects Bitwise Bitcoin ETF proposal. Etherereum is a commodity, according to the CFTC. Bank of England to regulate Libra. Bakkt daily volumes spike in just one day, and the Russian Central Bank disregards national cryptocurrency, says “no need” for one.
Zuck Will Testify to Congress About Libra Plans
Mark Zuckerberg (Zuck), the founder and CEO of Facebook, will be appearing before the US Congress in a hearing dealing with the entrance of the social network giant into the finance world. Zuck will be the sole witness of the hearing, titled, “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors,” organized by Maxine Waters, the Chairwoman of the House Financial Services Committee. The hearing will be held on October 23.
SEC Rejects Bitwise Bitcoin ETF Proposal
The US SEC rejected the proposal of Bitwise, an asset management fund, after having delayed it several times. The reason behind the latest rejection was that Bitwise apparently did not manage to address in a consistent way worries about illicit activities and price manipulation of the underlying asset. However, this development has not made Bitwise abandon its hopes for a Bitcoin ETF happening in the future. The company has already announced they will present another proposal in due time, considering this rejection a “productive step.” Many experts in the financial world have pronounced a Bitcoin ETF effectively dead for now.
Ether is a Commodity, According to the CFTC
Ether, the currency of the Ethereum network and one of the world’s most popular, has been classified as a commodity by the US CFTC. Chairman Heath Tarbert explained, “It is my view as chairman of the CFTC that ether is a commodity.” He also stated forked cryptocurrencies should be treated and classified as the original currency, clarifying regulatory ambiguity on the issue. This is the first time the CFTC referred to ether as a commodity, dispelling fears it may be considered as a security.
Bank of England Establishes Conditions for Libra
The Bank of England mentioned Libra in its latest Financial Policy Summary and Record, in the payment systems section. “Libra has the potential to become a systemically important payment system,” and such a system “would need to meet the highest standards of resilience and be subject to appropriate supervisory oversight,” the central bank mused. This is another setback for Libra, as regulators all over the world have voiced negative sentiments, citing fiat currency sovereignty issues.
Bakkt Trading Volumes Spike Overnight
Daily summary of Wednesday's Bakkt Bitcoin Monthly Futures:
💸 Traded contracts: 224 (+796%) (New ATH 🚀)
📈 Day before: 25
🚀 New all time high: 224
— Bakkt Volume Bot (@BakktBot) October 10, 2019
Bakkt, a first US regulated physically settled bitcoin futures markets, posted an all-time high number of contracts traded in a day. The exchange managed to trade 224 BTC in just one day. The milestone number was achieved after posting one of the most mediocre results, 25 BTC traded in a day. While this could be explained by market volatility, there could be other reasons. Since Bakkt launched its operation, low volumes have been cited as proof of its struggle to entice institutional investment.
Russian Central Bank Chairwoman Says There’s “No Need For National Crypto”
Elvira Nabiullina, chairwoman of the Bank of Russia, declared there is no need for a national Russian cryptocurrency, after having investigated the pros and cons. Nabiullina stated while at a forum of innovative financial technologies, that it was difficult to estimate the advantages of a national crypto compared to other cash substitutes. “There are many risks, and the advantages may not be obvious enough,” she concluded. This is a departure from declarations where she said the institution could launch its cryptocurrency one day.
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