Bitcoin’s mining difficulty set to increase, while the SEC and the House Financial Services Committee debate whether Ethereum is a commodity or security.

Bitcoin Mining Difficulty to Increase Again

Bitcoin’s mining difficulty, a measure of the computational power needed to mine new bitcoin, is set to increase once again. This adjustment occurs every two weeks and serves to maintain the average block time at ten minutes, regardless of changes in the network’s hash rate.

According to CoinWarz data, the mining difficulty for bitcoin is expected to increase from 47.89 trillion hashes to 48.53 hashes on Thursday, April 20th. The upward adjustment comes amid a significant increase in the price of bitcoin, which has risen by over 75% since the beginning of the year.

Bitcoin’s price surge has led to a corresponding increase in mining difficulty, as more miners are incentivized to join the network in search of new blocks. As a result, mining difficulty has become a crucial metric for assessing the health of the bitcoin network and predicting future price movements.

SEC Chairman Testifies Before House Financial Services Committee

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), testified before the House Financial Services Committee on Tuesday. The hearing focused on the oversight of the SEC and covered a wide range of topics related to securities regulation and enforcement.

During the hearing, Congressman Patrick McHenry (R-NC), the committee’s chairman, asked Gensler whether Ethereum is a commodity or a security. The question arises from a recent debate over the legal status of Ethereum and other cryptocurrencies.

In 2018, the SEC’s Division of Corporation Finance Director, Bill Hinman, stated that Ethereum was not a security. However, last month, the chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, expressed his view that Ethereum is a commodity. Additionally, the New York State Attorney General filed a court document claiming that Ethereum is a security.

Congressman McHenry asked Gensler to clarify whether Ethereum can be both a commodity and a security. Gensler acknowledged the complexity of the issue and stated that it depends on the specific facts and circumstances of each token. He added that the SEC is working to provide clarity on the regulatory status of cryptocurrencies.

Regulations in the Crypto Industry

Regulations in the crypto industry have been a hot topic for several years. There is concern over the use of cryptocurrencies in criminal activities and terrorist financing. As a result, several regulatory bodies worldwide have been seeking to regulate crypto markets to prevent money laundering, terrorist financing, and other crimes.

The European Parliament recently approved the first set of regulations for trading cryptocurrency markets. The measures aim to ensure that crypto assets can be traced, preventing money laundering, terrorist financing, and other crimes.

The new regulations require those facilitating the trading of cryptocurrencies to register with an oversight body. Additionally, there is a climate element, where service providers must disclose their energy consumption. These measures are expected to come into effect from July next year.

Many MEPs believe that cryptocurrencies are still in their infancy, and their long-term future is uncertain. As a result, regulations will need to be updated continuously to evolve with the crypto sector.

Conclusion

As bitcoin’s price continues to rise, so does the mining difficulty, which is set to increase again tomorrow. Meanwhile, regulatory bodies worldwide are seeking to regulate the crypto industry to prevent criminal activities. The SEC is working to provide clarity on the regulatory status of cryptocurrencies, which remain a contentious issue among lawmakers and regulators.