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US Regulators To Back More Oversight of Virtual Currencies (reuters.com)
Digital currencies such as bitcoin demand increased oversight and may require a new federal regulatory framework, the top U.S. markets regulators will tell lawmakers at a congressional hearing on Tuesday. From a report: Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), and Jay Clayton, chairman of the Securities and Exchange Commission (SEC), will provide testimony to the Senate Banking Committee amid growing global concerns over the risks virtual currencies pose to investors and the financial system. Giancarlo and Clayton will say a patchwork of rules for cryptocurrency exchanges may need to be reviewed in favour of a rationalised federal framework, according to prepared testimony published on Monday. Congressional sources told Reuters the hearing will largely be a fact-finding exercise focusing on the powers of the SEC and CFTC to oversee cryptocurrency exchanges, how the watchdogs can protect investors from volatility and fraud, and the risks posed by cyber criminals intent on stealing digital tokens.
*Now referred to as bespoke securities so as to skirt around market valuation requirements.
Have gnu, will travel.
>> X Regulators To Back More Oversight of Y
C'mon editors, this is "dog bites man". "Man bites dog" would be a regulator who wants a smaller kingdom.
You clearly don't know how a blockchain works. The only trace required is at the exchanges.
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Why have a debate about which agency? Why not let all interested agencies regulate? Limiting regulation to a single agency could lead to (1) less regulation, and (2) lack of conflicting regulations. Although, I suppose, that (2) is possible even with a single agency doing the regulation.
I'll see your senator, and I'll raise you two judges.
They are debating what agency gets to regulate it under current laws. Basically CFTC and SEC discussing how they see cypto and current securities law.
Probably none of the above..... Bitcoins are not security exchanges, AND they are not commodities contract exchanges, that is unless you're talking about those futures --- they're "Spot" exchanges or places of "Barter"; that is entities where you deposit your X or Y, and you receive trading tokens denoted in what you deposited that you can trade and then withdraw your X or Y.
And X or Y is either a Virtual currency value to/from a digital wallet or a Fiat currency value to/from a bank account.
Spot exchanges are rare, but I guess one of the largest and well-known would be eBay, where sellers list a physical good and a buyer wins the auction, then agrees to money they put down and receive the good.
Spot exchanges don't really require any 3rd party regulation, since buyers and sellers are directly swapping the end things of value, not contracts or securities --- virtual currencies are more standardized, so it's even easier for a virtual currency exchange to prevent fraud than it is for eBay to do.
The additional concerns are mainly security in handling the systems; KYC/AML issues, and ensuring exchanges don't do deceptive things like fractional reserve -- or take assets from customer accounts and do their own trades, possibly resulting in losses, or the exchange having less fiat or crypto X than the aggregate of that in their customers' accounts.
5) How do you enforce it? Worst case, people use VPNs.
You go after businesses providing services pertinent to adoption --- mainly you create burdensome rules that make it even harder to have an exchange, or take or process vcurrency-based payments
They'll have to wrestle the Mexican drug cartel's money laundering operations from HSBC's cold dead hands first: https://www.reuters.com/articl...
Debate is a form of harassment. Do not question my truth.
1) " Trust nobody"
Except the people who run the crypto currency, like bitcoin which is being run very badly and lightning which doesn't really exist yet.
Do you know who all the players in any given crypto-currency are? Do you really trust them more than the government .
So far as I'm concerned cyrpto currencies deserve to die, the people that created them have shown nothing but greed and complete disdain for the environment. They could of tried to come up with solutions to lessen the amount of electricity needed to create crypto-currencies but they haven't, so fuck them, their currencies should die.
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