Cryptocurrencies are facing increasingly stringent scrutiny in the global financial system.
Yesterday, Bitcoin experienced a double blow. According to CoinGlass data, following a steep price drop at noon, the overnight market saw a massive liquidation by bullish investors, amounting to $100 million, with over $400 million liquidated across various cryptocurrencies.
Media reports indicate that U.S. Senator Elizabeth Warren has proposed a bill calling for stricter regulation of cryptocurrencies to make them "more compliant." Some believe this bill could effectively prohibit the circulation of cryptocurrencies in the United States.
This news led to a rapid decline in Bitcoin's price, dropping to a support level of $40,000.
As of 8 a.m. Beijing time on the 12th, Bitcoin's price had slightly recovered, falling about 5.7% to $41,264 in the last 24 hours.
Warren's proposal aims to make the digital asset ecosystem more compliant by updating the scope of the Bank Secrecy Act and imposing stricter regulations.
Warren emphasized the risks of cryptocurrencies being used for money laundering, drug trafficking, evading sanctions, and other criminal activities, stating that these issues must be addressed through a strict regulatory framework:
"The Treasury Department has made it clear that we need new laws to combat the use of cryptocurrencies for laundering billions of dollars in illicit funds, evading sanctions, funding illegal weapons programs, and profiting from destructive cyberattacks by terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters."
Warren mentioned that five senators, including three members of the Banking Committee, have joined in support of the bill.
The media reports that the bill has gained support within the Banking Committee's internal alliance, potentially signifying a major push for legislative regulation in the cryptocurrency sector.
Some media predict that the U.S. Securities and Exchange Commission (SEC) will decide in January next year on whether to approve the first U.S. spot Bitcoin exchange-traded fund. If approved, the market could see a surge in demand for Bitcoin from both institutional and retail investors.
