US Senate Hearings: Without Bitcoins there is no distributed ledger technology that encrypts currency or ushers in the latest regulation

nRunaway Comment: This morning, the Senate cryptocurrency regulatory hearing held as scheduled. Both the Securities and Exchange Commission and J. Christopher Giancarlo, chairman of the U.S. Commodity Futures Trading Commission, attended the hearing and gave testimonies on the monitoring of cryptocurrencies. They also answered the sharp questions raised by the participating senators. It is noteworthy that on the whole, the opinions of the two presidents are rather positive. They did not blindly deny the role of cryptocurrency but instead expressed that they need to be supervised in a reasonable and responsible manner. In the meantime, the two presidents endorsed the role of the blockchain as well as its extensive use cases, which were also endorsed by the senators present. Regardless of the regulatory measures that will be taken subsequently, this hearing shows the regulators’ attitude of responsible regulation.n
nTranslation: Clovern
“After the hearing, we may want to go back to the Ministry of Finance and the federal government for more legislation.”n
Speaking at today’s Senate Cryptocurrencies hearing, Jay Clayton, the chairman, answered questions about whether the Securities and Exchange Commission of the United States (SEC) has enough jurisdiction over the cryptocurrency market.n
Another important regulatory body in the United States, J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission, also attended the hearing of the U.S. Senate Banking, Housing and Urban Services Committee at 10 am on Tuesday. He also commented on the topic during the hearing.n
That said, both Clayton and Giancarlo say there may not be a need for immediate action, even as concerns about technological advancement and the potential loss of less educated U.S. consumers are on the rise.n
Clayton said directly at the hearing: “Now I can not give a clear answer.”n
The questions raised by the senators attending the hearing also affected the comments of the two presidents. Some of these negatives, which led to the crash of cryptocurrencies such as bitcoin lately, include the recent hacker attacks at CoinCheck on the Japanese exchange and the nearly $ 500bn decrease in total market capitalization in January alone.n
Sherrod Brown, a Ohio Democrat who attended the hearing, said:n
n”It seems that sometimes cheaters and hackers know this technology better than most market participants, and that’s what all of us should be worried about.”n
nAt the hearing, Giancarlo was, on the whole, the most active tone on cryptocurrency, with special emphasis on the agency’s efforts to protect the interests of U.S. citizens under the current law.n
He said at the hearing that these efforts included the creation of an innovation lab focusing on the blockchain and the new open US futures market under its supervision.n
Despite this, Giancarlo admits that the CFTC will naturally be limited due to the worldwide operation of the cryptocurrency market.n
Clayton also commented on this aspect of the market. In reply to a question concerning the nature of the market structure, he said:n
n”The international nature of this market is also a reason for the intricacies of regulatory oversight.”n
Ordinary participant groups changen
However, the obvious phenomenon of the fault mentioned in the dialogue was to address the issue of the age difference that naturally arises with the birth of new technologies.n
For example, Giancarlo believes that markets are more than just “emerging, evolving and international,” they also have intergenerational characteristics. A comment by Giancarlo, widely supported by Twitter users, believes that the younger generation in the United States is inherently interested in cryptocurrencies and that innovation can not be suppressed.n
It is worth mentioning that Giancarlo’s comment was also supported by Mike Crapo, chairman of the Senate Banking Committee, who also acknowledged the evolving nature of the market.n
However, Clayton believes that “mainstream” investors may be the biggest beneficiaries of market regulation, saying that while some “smart people” believe the technology will bring value someday, he does not see “these advantages Revealed. “n
Subsequent views raised the issue of systemic risk, or the collapse of the cryptocurrency market could have far-reaching market effects on the nation’s economy, while Giancarlo argued that the market was “relatively small” and said that the market would not carry To systemic risk.n
Nevertheless, he said older people should be educated and protected, though to a certain extent the breadth of financial products should be equal for anyone.n
He said:n
n”Older people seem likely to be easy targets for crooks and market marshals, both in the precious metals and in the Forex space.”n
nClayton also expressed his opinion, but he seems more inclined to consider the negative aspects, and the possible impact of the market will not be contained.n
Clayton said:n
n”If people are cheated, then there will be reputation risk, which will bring systemic risk.”n
Regulatory needs more clearly?n
In addition to optimism, some market watchers also said they think the hearing shows that regulatory needs need to be clearer.n
Carol van Cleef, a senior bank lawyer in Washington, said the key point from Clayton’s statement was “there is a need for a clearer judicial line, and there is a need for someone at the federal level to take control of the business.”n
van Cleef said while Clayton said the SEC was coordinating with the CFTC, the Federal Reserve and state regulators, what he called “has always been a patchwork regulatory regime.”n
She continued:n
n”Although Clayton did not specify, he hinted that it was not enough for this area of ​​patchwork regulation.”n
Understand the bigger picturen
Others who watched Tuesday’s live broadcast pointed to another reason to celebrate: putting aside risk, both legislators and regulators seem to agree that cryptocurrency will be widely accepted.n
In fact, Giancarlo and Clayton both cited the potential use of the technology (the top scorer in the cryptocurrency community is the CFTC chairman’s commentary: “Without the bitcoin, there would be no distributed ledger technology.”).n
Senators present also expressed the same view.n
Jerry Brito, executive director of Coin Center, said at the hearing:n
n”Senators and regulators, of course, are concerned about fraud and market volatility in cryptocurrencies, but from today’s hearing we can clearly see that they also understand that, as Warner said, this can be the same as a telephone call Transformation. “n
nStephen Palley of Anderson Kill, a Washington-based law firm, said the result could be that U.S. policymakers “understand the technology,” and are willing to “responsibly” pursue law enforcement and regulation. “n
What is next?n
However, one issue that remains after the hearing is what the Congress and the regulator will do.n
In fact, while Clayton said regulators may require lawmakers to give them more power or more sophisticated regulatory tools, in theory, Congress may take the first step on its own to take action.n
The testimony about the coordination between federal and state regulators seeks to address Clayton’s “mixed” regulatory rules and also shows that regulators will take further steps in this area in the coming months.n
Perianne Boring of the Chamber of Commerce in Washington, who is based in Washington, thinks this is a positive sign for cryptocurrencies.n
She said:n
n”The SEC and the CFTC are working with other agencies to address the intricacies of regulation that inhibit growth and consumer choice and maintain the United States’ leadership in technological innovation, which has given us confidence and hope.”n

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