Bitcoin was trading more than 1% higher on Wednesday morning.
The price was around $ 56,800 per coin while competitors Ethereum and Dogecoin According to Coindesk, they were trading at around 4,300 US dollars or 22 cents per coin.
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According to reports, the Indian government has plans for a new law that would ban most private cryptocurrencies. The news sparked heavy sales in the country’s digital currency markets, according to Reuters.
According to a legislative agenda released late Tuesday for the winter session of parliament beginning this month, the government will only allow certain cryptocurrencies to promote the underlying technology and its uses.
If the law were passed, it would effectively ban citizens of India from trading in most cryptocurrencies.
In other cryptocurrency news, the chairman of the U.S. Senate Banking Committee sent letters to stablecoin issuers and exchanges on Tuesday asking for information on how companies are protecting consumers and investors in light of the risks highlighted in the president’s working group’s latest report on financial markets .
Senator Sherrod Brown, D-Ohio, said consumers and investors may not understand how stablecoins work and the risks involved, according to Coindesk.
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“I have significant concerns about the non-standardized terms that apply to redeeming certain stablecoins, how these terms differ from traditional assets, and how these terms may not be consistent across all digital asset trading platforms,” Brown wrote in a letter to Circle , the payment service provider operating stablecoin USD Coin (USDC).
Circle CEO Jeremy Allaire tweeted that he looked forward to “responding and working with you to ensure consumers are properly protected”.
The President’s Working Group prepared the report with the FDIC (Federal Deposit Insurance Corp.) and the Office of the Comptroller of the Currency.
The report is considered the first step in establishing regulatory oversight at the federal level over the stablecoin sector in the United States
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Stablecoins are cryptocurrencies that are usually pegged 1: 1 to the value of other assets such as the US dollar, and issuers maintain the fixed value of these currencies by backing them with reserves equal to the value of the coins in circulation.
