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.

Comments

Meanwhile ...

[PPH]

... unregulated or lightly regulated CDOs* are still a thing even after 2007. Why don't the regulators clean up the shit that has proven to be a disaster instead of pulling hypothetical risks out of their ass?

*Now referred to as bespoke securities so as to skirt around market valuation requirements.

Re:Cryptocurrency correlates to crime/risk

[DontBeAMoran]

...the lack of traceability of cryptocurrency...

You clearly don't know how a blockchain works. The only trace required is at the exchanges.

Re:Cryptocurrency correlates to crime/risk

[VeryFluffyBunny]

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...