18.01.202314:15 Forex Analysis & Reviews: The US is creating a committee on digital assets

The announcement that the US Congress has established its first-ever subcommittee on digital assets within the scope of the House of Representatives Committee on Financial Services caused bitcoin and ether to halt after the irrational spike seen last week.

Congressman French Hill, who will serve as the subcommittee's chairman, stated, "We want to develop a regulatory framework for digital assets that will make America a leader in terms of innovation but also protect consumers and investors."

"Committee on Digital Assets, Financial Technologies, and Inclusivity" will be the name of the subcommittee. The first-ever Congressional subcommittee on digital assets will be led by Congressman French Hill, according to Congressman Patrick McHenry, chairman of the House Committee on Financial Services.

As it turned out, the new subcommittee's duties consist of pretty commonplace items. In addition to developing clear guidelines for behavior in the ecosystem of digital assets, regulations promoting financial innovations with a wider social impact will also be developed. Compiling best practices that will improve the inclusion of digital assets is another duty for the panel.

A former local banker and a representative of the US Treasury Department, in the opinion of Congressman Patrick McHenry, have the expertise and understanding required to complete the job. He emphasized, "In one of my top concerns, there is no one I would trust more." McHenry continued, "I look forward to working with him to set clear norms of conduct for the ecosystem that protect consumers while also enabling innovation to thrive here in the United States."

A regulatory framework for digital assets, including digital payments, must be promptly developed, the source added if the United States is to be a leader.

Regarding the technical state of bitcoin, the bulls' priority is to maintain control over the $21,300 mark. By focusing on it, a new bullish trend can be created with a potential gain of $21,840. The $22,525 region will be the farthest objective, where significant profit-taking and a rollback of bitcoin may take place. In the case of further pressure on the trading instrument, defending the $20,300 level will take priority because a breach by sellers would be detrimental to the asset. This will put pressure back on bitcoin and create a direct path to $18,360 and $19,280. The first cryptocurrency ever created at $17,460 will "drop" when these thresholds are broken.

Ether buyers are focusing on the breakdown of the nearest resistance level at $1,600. This is going to be sufficient to establish a foothold at the current highs and keep the bullish trend going. Additionally, this will have a huge impact on the market and halt the bearish wave. If the price fixes above $1,600, the balance will be returned to the ether, with a maximum increase of $1,690 possible. The $1,780 region will be a further aim. The $1,410 level, which was just formed, will come into play when the trading instrument is once again under pressure and the $1,500 support is broken. If it succeeds, the trading instrument will rise to a minimum of $1,320. It will be extremely difficult for bitcoin owners to trade below $1,260.