Regulators Set to Address Senate on Bitcoin
Cryptocurrency goes to the Capitol.
The U.S. Senate’s financial services panel will hold a hearing next month with the country’s top markets regulators to discuss bitcoin amid rising concerns over the risks cryptocurrencies pose to the financial system, a person with direct knowledge of the matter told Reuters.
The Senate Banking Committee will take testimony from Commodity Futures Trading Commission Chairman Christopher Giancarlo and Securities and Exchange Commission Chairman Jay Clayton in early February, the source said.
The high-profile confab comes about cryptocurrency trading and hysteria has grabbed the globe – trading and new token sales are making headlines almost daily despite very little being known about the currencies or backers. Also, the sector is currently unregulated – making if a prime target for all kinds of nefarious activity.
Bitcoin has traded as high as $19,000 dollars in a matter of weeks while its sister currencies such as Ripple and Ether have also seen prices skyrocket. Many feel a potential bubble exists while others counter the market is merely following the age-old concept of supply and demand. Still, anyone involved in the trading of these cryptos must know right now that the only thing certain for these new instruents is “buyer beware.”
The CFTC last month allowed CME Group Inc and CBOE Global Markets Inc to list bitcoin futures contracts, but this month said it would review its process for listing digital currency futures following criticism from market participants.
The Bitcoin ETN futures are based on ETC Group’s physical Bitcoin ETN.
Gensler suggests Bitcoin ETF filings limited to CME-traded futures would be welcomed by SEC.
It is hoped that BNY Mellon will provide transfer agency and ETF services when the fund converts to an ETF.
Increase in institutional demand highlights growing legitimation of bitcoin.
There has been more institutional volume than anticipated.