Cryptoassets Jump as Tesla CEO Hints about Bitcoin Acceptance
Amidst low-sentiment driven slowdown, Cryptoassets prices jump after Elon Musk, Tesla’s Chief Executive pitches that the electric-car maker will most likely accept Bitcoin for payment.
Due to strong bumps in the second quarter of 2021, cryptocurrencies market capitalisation has plunged about 50% from about $2.5 trillion to $1.29 trillion.
The bearish trend has been supported by China’s crackdown on the largest crypto asset while regulators from the United Kingdom, United States pressure continue to rise.
Musk’s comments come after Tesla said in May it would stop accepting bitcoin for car purchases. The statement sent the crypto market to the bottom of the market pyramid due to selling rallies.
“Tesla would resume accepting bitcoin, it is most likely,” Musk said at the B-Word conference, where Square Jack Dorsey also took part.
Speaking at the conference, Musk said he personally owned bitcoin, Ethereum and Dogecoin, apart from bitcoin that Tesla and SpaceX owned.
Amidst the ongoing bloodbath, Bitcoin BTC-USD reacted positive to the news, up 8% at $32,160.16, while ether surged 11.6% to $1,993.36.
Meanwhile, Musk had announced that the electric car maker will start buying the leading digital asset as the price tumbled. A move some crypto analysts believe would reduce pressure on the company’s holding.
Read Also: Bitcoin Jumps after Elon Musk Says Tesla May Resume Buying
Digital Assets Subject to Same Laws as Regulated Securities, Gensler Says
In a related development, digital assets whose values move in tandem with regulated securities are subject to the same regulations, Securities and Exchange Commission Chair Gary Gensler said in prepared remarks to the American Bar Association.
“It doesn’t matter whether it’s a stock token, a stable value token backed by securities, or any other virtual product that provides a synthetic exposure to underlying securities,” he said in a speech Tuesday.
“These platforms — whether in the decentralized or centralized finance space — are implicated by the securities laws and must work within our securities regime.”
The SEC already has pursued some cases pertaining to retail offerings of security-based swaps, he said. “Unfortunately, there may be more,” Gensler said.
Read Also: Basel Committee Launches Public Consultation on Cryptoassets
Cryptoassets Jump as Tesla CEO Hints about Bitcoin Acceptance
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