12.02.202515:35 Forex Analysis & Reviews: Diverging Opinions on Cryptocurrency Regulation

While Bitcoin and Ethereum are contemplating their next moves, U.S. lawmakers remain divided on the regulation of stablecoins and cryptocurrencies, highlighting ongoing disagreements on the matter. The situation has been further complicated by Donald Trump's memecoin and criticism directed at regulators hesitant to embrace new digital technologies.

During yesterday's hearing in the House Financial Services Committee on digital assets, lawmakers pointed out potential regulatory hurdles while calling for bipartisan cooperation. "Crypto technologies return economic power from centralized institutions to the people," said Rep. Tom Emmer, a Republican from Minnesota. "The mismanagement of our previous administration, which feared this transformation, has left us far behind other nations advancing in this field. Democrats did everything they could to destroy this new technology."

The Biden administration has been repeatedly criticized for its hostile stance toward the cryptocurrency industry, particularly through enforcement actions led by the Securities and Exchange Commission (SEC).

Meanwhile, some Democrats raised concerns over the recent controversy surrounding Trump's memecoin, launched just before his inauguration last month. Rep. Sean Casten, a Democrat from Illinois, described Trump's memecoin as an unstable financial instrument with no intrinsic value. "The token has no more value than a Bible, a pair of sneakers, a steak, or a bottle of water," Casten remarked. Many investors lost millions of dollars within just a few days due to the pump-and-dump scheme involving the Trump token.

Some Democrats also expressed concern about the Consumer Financial Protection Bureau (CFPB), whose future remains uncertain.

Over the weekend, acting CFPB director Russell Vought reportedly ordered staff to halt all supervisory and enforcement actions. The CFPB was originally proposed by Sen. Elizabeth Warren, a Democrat from Massachusetts. The Trump administration has long been hostile toward the CFPB, and billionaire Elon Musk, the newly appointed head of the Department of Government Efficiency (DOGE), has called for its elimination.

Both Republicans and Democrats have recently proposed their own frameworks for stablecoin regulation, but no concrete discussions have taken place yet.

For years, leaders in the crypto industry have advocated for regulatory clarity, and it seems that lawmakers are finally listening.

Bitcoin Technical Analysis

Bitcoin buyers are now targeting a return to the $96,000 level, which would open the way to $97,400 and then quickly push toward $98,800. The ultimate target is the $100,200 resistance, and a breakout above this level would confirm a return to a medium-term bull market.

In case of a downturn, buyers are expected to step in at $94,400. A drop below this level could accelerate losses toward $92,700, with the next major support at $90,000. The worst-case scenario could see BTC retreating to $79,800.

Ethereum Technical Analysis

A stronghold above $2,630 would open the door for ETH to rise to $2,683, followed by a quick move toward $2,733. The final bullish target is the yearly high at $2,803, a breakout of which would confirm a medium-term bull market.

In case of a correction, buyers will likely step in at $2,588. A breakdown below this level could push ETH toward $2,490, with the next major support at $2,415.