Bitcoin, ether falls in the middle of Evergrande, regulatory problem

The global cryptocurrency market was hit on Monday morning, with the price of bitcoin, the largest cryptocurrency by market value, falling below $ 44,000. It is currently trading at around $ 44,068, down around 7.45% in the past 24 hours.

The other major cryptocurrencies are also in the red.

Ether, the second largest, is currently trading at around $ 3,106, down 7.76% in the past 24 hours. Overall, the global cryptocurrency market capitalization has fallen more than 8% in the past day.

It comes as investors fear the fallout from the near-collapse of indebted Evergrande, a Chinese real estate developer so massive it could affect the global economy, which has triggered a sell off of volatile investments like crypto, and also amid concerns about the potential regulation of cryptocurrency in the us

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On September 13, the House Ways and Means Committee proposed legislation that would close a tax loophole for cryptocurrency investors by imposing “blank sale” rules on commodities, currencies and digital assets, according to a preview published.

Currently, investors can sell cryptocurrency at a loss and claim a tax benefit. Then investors can immediately buy back the asset if it bounces back. The so-called “wash sale” rules would prevent investors from immediately buying the same asset.

According to estimates by the Joint Committee on Taxation, subjecting cryptocurrency and other assets to this proposed change would raise $ 16.8 billion over a decade.

Gary Gensler, chairman of the Securities and Exchange Commission, told the Senate Banking Committee on Tuesday that the SEC is working overtime to create a set of rules for the cryptocurrency markets to protect investors.

“Currently, we just don’t have enough investor protection in crypto finance, issuance, trading or lending,” Gensler said in prepared remarks. “Frankly, back then, it looks more like the Old West or the old world of the ‘prudent buyer’ that existed before securities laws were enacted.”

Some lawmakers have also lobbied Gensler on whether certain crypto assets, like stablecoins, meet the definition of a security, which is a matter of ongoing concern and confusion for regulators and the crypto community.

Ray Dalio told CNBC on Wednesday that he believes regulators will ultimately take control of bitcoin if the cryptocurrency is successful.

“I think at the end of the day if it really succeeds, they’ll kill him and they’ll try to kill him. And I think they’ll kill him because they have ways of killing him,” Dalio told Andrew. Ross Sorkin on CNBC’s “Squawk Box” at the SALT Conference.

“You have El Salvador doing it and you have India and China getting rid of it. And you have the US discussing how to regulate it and it could still be controlled,” a- he declared.

Still, Dalio revealed that he has “a certain amount of money in bitcoin,” but noted that the allocation is less than his exposure to gold.

“It’s an incredible accomplishment to have brought it from where this programming happened to where it is through the test of time,” he said.