by Countable | 2.21.18
U.S. lawmakers are moving to consider rules that would impose stricter federal oversight on cryptocurrencies like Bitcoin, Ethereum, and Ripple.
As Reuters explained, "Virtual currencies have existed for years but speculation in them has recently ballooned, along with scams promising investors returns of over 1,000 percent in weeks." The past few months have also seen a number of high-profile cryptocurrency thefts, and a wildly fluctuating market where Bitcoin surged over 1,300 percent before losing over half its value.
"There’s no question about the fact that there is a need for a regulatory framework," Republican Senator Mike Rounds, a Senate Banking Committee member, told Reuters.
Currently, digital currencies fall into what the news outlet describes as a "jurisdictional gray area between the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Treasury Department, the Federal Reserve, and individual states."
At a recent hearing of the Senate Banking, Housing and Urban Affairs Committee, the Trump-appointed chairman of the SEC, Jay Clayton, said:
"Many promoters of initial coin offerings and cryptocurrencies are not complying with our securities laws and, as a result, the risks are significant."
Speaking about the SEC and CFTC’s limited power to regulate virtual currencies, Clayton added that "there are significant security risks that can arise by transacting in these markets, including the loss of investment and personal information due to hacks of online trading platforms and individual digital asset 'wallets.'"
The concern crosses party lines. New York's Carolyn Maloney, a Democratic senior member of the House Financial Services Committee, cautioned that "a lot of people don’t realize there’s nothing backing these virtual currencies."
Should cryptocurrencies be considered a security or commodity? Which department should they fall under? Or does Congress need to establish a new Cryptocurrency Exchange Commission? Hit Take Action and tell your reps, then share your thoughts below.
(Photo Credit: KeremYucel / iStock)
Written by Countable
Only reason you're"considering crypto currency" is to find a way to profit from it. Get your chubby paws out of the cookie 🍪 jar. Your free ride is over.
The initial idea of Bitcoin was to have a currency that doesn’t go through the banks after the financial crisis. Leave Crypto currencies alone! If people loose money that’s the risk they run. The stock market isn’t really much better. I hate to think of all the money I’ve lost in all the ups and downs!
Stay out of crypto currency. You all just want to profit from it and ruin it
The Ultra Capitalist Extremists had a monopoly on imaginary money since the New York stock exchange began. They should stick to their rigged Dinocurrency and leave the future to those of us who will be there.
Please leave crypto currency alone. I know you have better things to do that you would rather spend time on like health care an infrastructure (you are welcome to come check out the pot holes in my state!)
Leave crypto currencies alone! The Federal Reserve has been stealing wealth and enslaving humanity through their debt based fiat currency since it was established in 1913. There is nothing backing the US Dollar either, ever since the gold standard was removed. The idea of regulating crypto currency isn’t meant to protect the public, but rather to protect the interests of bankers who have had a monopoly on the creation of money for far too long. Crypto currency is meant to create a TRUE Free Market and give power back to the people. The power to generate wealth should not be centralized whatsoever. This is why decentralized solutions such as crypto currencies threaten those in power and ARE NOT meant to be regulated by any existing financial institutions or institutions of government. Keep ALL crypto currencies decentralized and make no attempts to interfere with or regulate them. THANKS!
If there is tangible value the guvmint wants a piece. Can we all just tell politicians to take a flying f___ at a rolling donut?
Crypto currencies will and must be regulated as commodities if only so the Feds get their cut. There should be 1099’s generated and taxes paid. Good for the goose, good for the gander. I pay taxes on my dividends and capital gains. If the Feds don’t regulate it they’ll eventually outlaw it. Good luck with that. Welcome to America!
Fed should not creat laws to make cryptocurrencies more expensive or harder to work with.
You guys have a lot more important things to be considering right now!! Things that are life or death!!
Interesting what our lawmakers have no problem with considering. ... money! Safety for children, not so much
Ummmmm, regulated cryptocurrencies defeat the purpose of cryptocurrencies.
Cryptocurrencies are neither a commodity nor a currency. They are a fantasy built on smoke. Look to Tulipomania for a history lesson.
The government needs to stop ruining everything. Cryptocurrency is the people's money. The the government's or the bank. Get you shity hands off it. Your are fu**ing up the US dollar. Don't mess with the crypto too. Good grief!
Or a third option: -keep government hands out of it. The crypto community can self monitor. Hackers should still be penalized, but that doesnt have to involve government until laws are broken. let the crypto market fail or succeed on its own. The coin developers, wallet developers and exchanges have the financial incentive to keep hackers at bay, but that can be done thru 3rd party entities. The whole idea of crypto is to avoid government in the first place while empowering the crypto community.
Leave crypto alone. Do not ruin it just because you cannot profit from it.
Define exactly what a crypto “currency” is in legal terms, what intrinsic value and reserve type is required, require registration for currency products and for brokers, then outlaw everything else.
What if we switched the dollar into crypto currency? There is no gold standard, so why stop at making rules for crypto currency? Adopt it as the national currency...
Dear Everyone...here’s the rule, if it seems too good to be true (1000% return) it is. There, now we don’t need the Fed gov sticky fingering their way in to this. Stay out of Crypto Currency. #NoToStickyFingers
The only way I think they can legally regulate this is to call crypto currencies money.