The CEO of the Blockchain Association on why Bitcoin has been so stable lately

The CEO of the Blockchain Association on why Bitcoin has been so stable lately

On Friday (October 21), Kristen Smith, CEO of Washington, DC Blockchain Association (representing “reputable leaders in the US blockchain and cryptocurrency industry”), explained in a recent interview why the price of bitcoin has stabilized over the past few months.

Here is her biography:

Kristen directs the Blockchain Association, where she leads the crypto industry’s development of a strategic public policy roadmap. An experienced political expert, she has high-level experience in both the House and Senate offices as well as private sector experience advocating for companies in the telecommunications, Internet, and other technology-focused industries. Kristen holds an MBA in Finance from New York University’s Stern School of Business and a graduate degree from Georgetown University.

Smith’s comments were made during a conversation she had with Joe Kernan, co-host of CNBC’s “Squawk Box,” at a time when Bitcoin was trading around $19,000.

according to Report By The Daily Hodl, Smith said:

I think Bitcoin has been pretty stable for a number of reasons. First, you have a retail investor who is largely out of investing in bitcoin… people are worried about paying for gas. They worry about paying for groceries. They don’t have the ability to put extra money away by investing in Bitcoin at the moment...

But I think the investors out there now are waiting for a future date. They are in it for the long term. And I think as we start to see the economy shift and people put more risk in their portfolios, we’ll see investing in Bitcoin go up and so the price.

On September 16, 2022, Jake Chervinsky, one of Smith’s colleagues at the Blockchain Society, responded to Bitcoin maxis, like Michael Saylor, who was glad that Ethereum’s Merge upgrade might have made ETH a more targeted US dollar by the US Securities and Exchange Commission (SEC).

After Ethereum’s Merge upgrade was completed in the early hours of September 15, 2022, several influential Bitcoin maxis expressed their reaction to the event.

Saylor, a Bitcoin maxi (for example, who believes that — apart from State Department-backed stablecoins like Tether ($USDT) — Bitcoin is the only legitimate cryptocurrency), sent out a tweet in response to SEC President Gary Gensler’s most recent comments on cryptocurrency. at PoS which suggested that he expects the SEC to eventually declare $ETH as a security (as opposed to $BTC which they have publicly called a commodity and therefore not subject to US securities laws).

The Wall Street Journal (WSJ) Report Saylor is referring to in his tweet that “Thursday’s big Ethereum software update may have turned the second largest cryptocurrency into a security” in the SEC’s eyes. According to a Wall Street Journal report, although Gensler did not specifically mention Ethereum, he said yesterday that the PoS blockchain’s native assets could pass the Howey test because staking could be viewed as an “investment contract” because “the investing public He expects profits based on the efforts of others.”

Chervinsky, who was the public council at Compound Labs before becoming Executive Vice President and Head of Policy at the Blockchain Association, took to Twitter on September 16, 2022 to defend Ethereum’s move to the PoS consensus by explaining why despite what some people might think the merger did not change ETH. Dollars from a commodity to a security.

He went on to say:

The general idea seems to be “If you stare hard enough, the bet looks like a dividend or interest, and some actual securities have these, so maybe the tied assets are securities as well.” This is not how the law works. It only means that holders of accumulated assets expect a profit …

Who alone does not make the assets into securities. Profit forecasting is only one of the four Howey test forks and is probably the least important for volatile assets (for example, volatile currencies). People own all kinds of assets with the expectation of profit. Gold, cars, watches, etc.

In other words, profit expectation is a feature of all investable commodities, not just securities. Whether that profit comes in the form of an increase in the market price, a staking bonus, or any other mechanism should make no difference to a stock analysis.

Shortly thereafter, he went further, suggesting that rather than being a mistake, the merger is a win for Ethereum because it reduces the chance that the SEC will classify $ETH as a security:

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