Senate Hearing says “HODL” bitcoin 🏰 🏰 🏰

https://www.risk.net/regulation/4126411/giancarlo-orders-review-of-cftc-rules
  • ICOs have raised over $4 Billion to date
  • Investing in an ICO does not mean you are investing in blockchain technology
  • Most exchanges are less secure because they are not vetted by the SEC or CFTC
  • They believe that every ICO that has gone to market is in fact a security
  • He opens with a story explaining how Bitcoin and Cryptoassets have peaked his children’s interest and how government owes it to the public to understand this new technology and reduce risks for consumers
  • The SEC has never conducted this much outreach for any other financial product
  • Total value of outstanding BTC is about $113 Billion, which is less than the total market cap of McDonalds.
  • Total value of virtual currency is around $313 Billion, total global money supply is $7.6 Trill and the total Gold supply is around $8 Trill
  • The Futures market gives them jurisdiction to oversee virtual assets
  • There needs to be a coordinated effort from multiple agencies to regulate virtual assets
  • Advises that there needs to be more legislation/regulation in place to oversee the market better
  • Fraud and manipulation will be more of the focus of said legislation
  • Fin Syn (The Financial Interest and Syndication Rules) has been active in regulating
  • We don’t know
  • We are understaffed and the hiring freeze has impeded our ability to grow as needed
  • We could use more people in enforcement and in trading and markets
  • The Treasury Secretary has formed a virtual currency working group consisting of the SEC, CFTC, The Fed, and Fin Syn.
  • Not sure, we may be back to request more legislation
  • We have a team that work together that do understand the technology
  • In 2017 we hired our first Chief Innovation Officer, deep background in new FinTech innovation
  • Launched CFTC innovation hub to understand and educate
  • Formed virtual currency enforcement task force that has brought forth three civil action suits against bitcoin fraudsters
  • Budget request for 13% more funding which will be focused on FinTEch, Cyber and Cryptocurrencies
  • Cryptocurrencies do not necessarily make sense as a currency
  • If people are getting ripped off this will have systemic effect
  • Bitcoin is a medium of exchange, a store of value, or a means of account
  • If it is a medium of exchange it is like a currency, but has issues with processing. Yet it is still spoken of as a means of account, which gives it implications from the Fed. If it used as a store of value, it is like an asset or a commodity.
  • Some people want to hold on to it, so it is a commodity
  • Regional and International markets do fluctuate
  • We work with other countries like Japan to regulate cryptocurrency
  • There are more civil actions to come against people that take advantage of consumers
  • We are educating librarians, hosting webinars, we have dedicated groups that are focused on education
  • One of the most frequently searched terms on library computers is bitcoin
  • Seniors seem to be the focus of fraudsters
  • If it sounds too good to be true, it is
  • There are disruptive technologies that come along, but you should not let it disrupt how you invest
  • We currently work closely with law enforcement
  • We also have a dark web group that is working with law enforcement
  • I did not read it cover to cover
  • Most investors don’t read it
  • Historically, adequacy of full disclosure is a building block of Securities laws
  • I am not satisfied with what people are thinking in regards to foreign exchanges or how people are handling ICOs
  • I agree that we need disclosure that helps consumers
  • Yes
  • We rely on Gate Keepers to help regulate
https://smartereum.com/wp-content/uploads/2018/02/Senate-Crypto-Hearing-1-810x538.jpg
  • Bitcoin futures is regulated
  • This gives us visibility into underlying spot markets
  • Coordination is important
  • If we didn’t have bitcoin we would not have this tech
  • The applications for this tech includes Financial Industry,Banking, Charity, Agriculture Futures, Transportation, Regulators
  • (Giancarlo) References credit exposure in 2008 and how a distributed ledger could have helped make good decisions and possibly prevented the crisis
  • The potential is great
  • Anywhere verification and record keeping has cost, there is an opportunity for this tech
  • I hope that people pursue it vigorously
  • I don’t know what is driving the volatility, they are not coordinated with sovereign currencies
  • An asset that is highly volatile is not a good means of exchange
  • Currently we have limited jurisdiction in that matter
  • If you are promoting securities, you are taking on securities law liability
https://media.coindesk.com/uploads/2018/02/hud-e1517937234744.jpg
  • Our ETF product space is largely a retail product space, we have made it clear to the market space that there are a couple of issue with an ETF that is based on cryptocurrency, they go to price discovery and custody and some other issues around volatility. We have let the industry know that those are issues of concerns to us and we do not want to approve an ETF product with a cryptocurrency underlier until we can get comfortable with those issues.
  • Nobody should think it is ok to change their name or falsely say they are using a technology that they are not. We issued a warning on the SEC website and I gave a speech on this. This is problematic
  • It is very hard for us to get their money back.
  • We do not have the same regulatory authority that we do in domestic exchanges
  • All of the systems in place were working as they should and we did not see anything abnormal
  • Markets are very complex, and you hear people say reasons that may have affected the market. All of the fundamentals were working and the margins were intact.
  • The gatekeepers that we rely on are not doing their jobs. ICOs take the promise of a secondary market without registering with us and it is not OK.
  • It is a violation of the law and they can hide information.
  • These companies can do a private placement but only if they do it right.

Thank you for reading this piece, I hope you found it useful! If you are interested in continuing the conversation, we would love to have you in our Telegram group Crypto Cooperative: https://t.me/cryptocooperative

Resources from related government agencies:

--

--

--

Data Driven w/ strong Fundamentals, crypto evangelist, never ending learner, music and art nerd. I also play good tunes for cool people. twitter:@adamgdev

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

How to claim the giveaway of second-round badges?

Why Crypto-Trading Will Get Social in 2020

Möbius Finance Earns Strategic Investment from Gate.io

Bitcoin whales. Who are the biggest players in the cryptocurrency market?

Orion Money —The Next High yield savings bank

A tale about 10,000 BTC, one Pizza and a lingering student’s crises in Lebanon.

Pastel (wPSL) is now officially trading on Uniswap!

How to participate Matrix Blind Box?

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
adamgdev

adamgdev

Data Driven w/ strong Fundamentals, crypto evangelist, never ending learner, music and art nerd. I also play good tunes for cool people. twitter:@adamgdev

More from Medium

Coinbase Security Exchange Lawsuit Breakdown

Times Like These Are Exactly Why We Need Crypto [VIDEO]

I’m sorry Bitcoin, it's time we saw other people…

Leyndell, Royal Capital