The heads of the Securities Exchange Commission and the Commodity Futures Trading Commission sat before a congressional committee this morning to restate their intent to regulate — but not stifle — cryptocurrency and its related to offerings . During questioning , however , it became clear that foundational issuing are stalling progress in cracking down on fraudsters .
At one point , Senator David Perdue , a Georgia Republican , necessitate if Bitcoin would be classified as a security , a trade good , or both . To which Giancarlo respond :
What s so challenging about bitcoin is it has characteristics of multiple different things [ … ] if its a culture medium of rally , then its a currency - like instrument . And yet as we ’ve seen a number of means of exchanges have been close to Bitcoin [ … ] yet it ’s still spoken of as perhaps a means of account . In that case it has implications from the [ Federal Reserve ] and currency . From our point of sentiment , when it ’s used as a computer memory of time value then it ’s very much like an asset , like a commodity .
None of what Giancarlo is untrue . It ’s also not especially helpful from a rule standpoint .
Both the delegacy that sit before Congress this morning have taken aim at occupation in specific incidents : the SEC hashaltedsomeinitial coin offerings ; the CFTCchargedMy Big Coin and its principals with faker last month . So far , there ’s been piddling in the agency of wholesale enforcement of the market as a whole because no office seems to gibe on whose trouble it is .
The beginnings of a multi - agency practical currentness workings chemical group were repeatedly work up . But as Giancarlo intromit early on , “ there ’s a patchwork here , but there ’s not a comprehensive structure . ”
Beyond sussing out the primal outlet of what cryptocurrencies are and which entity should baffle them , both Giancarlo and Clayton had few answers for basic interrogative about the blank space where they ’re tasked with protecting consumers . Spot market ? Unregulated . How much money was raised by ICOs in the US ? nameless . expect about Bitcoin ’s 3,200 - percentage climb over the past five old age — andrecent clangour — Clayton replied , “ I do n’t really jazz what ’s take the volatility . ” And when stupefy with a question about enforcement options when cryptocurrency is used to evade US indorsement , Giancarlo notice that “ the jurisdictional lapse is probably greatest for the two agencies sitting before you today . ”
deficiency of info might have been precipitated by another challenge brought up by several lawmakers , include popular Ohio Senator Sherrod Brown , who contract for data about the level of these agencies ’ proficient expertise , and , in the face of the SEC , a hiring freeze .
This hearing took place , we should notice , just after Bitcoin ’s priceplunged to around $ 6,000before reverberate slimly to just above $ 7,000 .
The bureaucratic inefficiency on display today and the sloppy efforts at protecting consumers thus far should not come as hearten news to crypto enthusiasts , however . senator involved with the hearing seemed , by in large , to be supportive of more aggressive efforts and uncoerced to help the SEC and CFTC in coordinating them . The anatomical structure for wide regulation of crypto markets may not be now , but as Clayton told the citizens committee , “ we may be back with our friends from Treasury and the Fed to ask for extra legislation . ”
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