Extended Oversight Role of U.S. SEC And U.S. CFTC
Things to keep in mind.
- G20 Summit Relevant Participants.
WASHINGTON – U.S. Senator Mike Crapo, Chairman of the United States Senate Committee on Banking, Housing and Urban Affairs, today delivered the following remarks during a full committee hearing entitled “Virtual Currencies: The Oversight Role of the SEC (The Honorable Jay Clayton, Chairman, U.S. Securities and Exchange Commission); and CFTC (The Honorable J. Christopher Giancarlo, Chairman, U.S. Commodity Futures Trading Commission)
More speakers: M.R. brown, M.R. Shelby, M.R.Reed, M.R.Rounds, M.S.Warren, M.R.kennedy, M.R.Warren, M.R.Cotton, M.R.Mendez and M.S.Cortez.
G20 Crypto Currency summit happend yesterday, 06/Feb/2018. At Argentina country in charge to preside the presidency of G20 group. The meeting was started by Senator Mike Crapo defining what is CryptoCurrency.
Virtual currencies are meant to act as a type of money that can be traded on online exchanges for conventional currencies, such as dollars, or used to purchase goods or services, predominantly online
He also talked about the incredible rise that CryptoMarket recieved in this small period of time and the hack that CoinCheck exchange suffer last month. Anyway he still thinking that this markets have a significant potential due to the future, but there are problems to solve.
- M.R. Senator Brown argument:
Bitcoin/CryptoCurrencies, capture the attention of investors, speculators, computer programmers and regulators. No one could imagine how fast VirtualCurrencies evolve an spread into our world, thats why we need our regulators to understand how this tecnology works so markets can evolve easily and minimize risks.After this he textually said, that one thing is clear, CryptoCurrencies brings us a new age.
- M.R. Jay Clayton, U.S. Securities and Exchange Commission. (SEC) Chairman.
He introduces us talking about the maximum amount of CryptoCurrency MarketCap (arround 700 hundred billion Dollars), the next important tip of his debate was talking about BTC from regulatory perspective letting us three categories:
- Unfair new tecnology refered to distributed ledger tecnology of Bitcoin and BlockChain. He said: “This tecnology has great efficiencies to our national and global economy including our CapitalMarkets”
- CryptoCurrencies. Are the substitutes of conventional currencies as U.S. Dollars or the Euro, and with them is easier to buy or sell goods.
- ICOs. Initial coin ofering will be more secure when this “new companies” are under a new label or regulation, by now its just a electronic ledger for each.
CryptoWorld has many problems but in particular the atention is focused on two: First one, is that many markets of this products have been lees oversight than our traditional ones, so they need requirements to protect our investors. Second one, is that many ICOs are offered illegal because laws are not clear.
- M.R. J. Christopher Giancarlo, U.S. Commodity Futures Trading Commission. (CFTC) Chairman.
He emphasizes on regulatory coordination, because of the necesity of working together on this new market evolution by reducing the risks and making laws clear, in fact this market is not regulated so there is a patch of work here but not a comprehensive structure.
At the end the challenges due to international and national aspects are: what is the appropiate roll of regulation here? Do we have enough jurisdiction? This is going to be faced by bringing regulation together and also requires a new tipe of thinking, senator affirms. How are theese two institutions going to work together? Jay Clayton response to that question saying that is one of the biggest challenges at the moment but is going to be enforce with more security and a bigger amount of people working on this aspects as well as using the market.
- Some relevant Questions and answers of the G20 “CryptoSummit”
M.R. Shelby: “We live in a virtual world, you go to the doctor and he gives you a virtual examination, not as in my time, but crypto currencies have lack in value, liquidity and I do not know where is the bottom.
M.R. J. Christopher Giancarlo, answered him that some economist says there is a relationship of BTC value with the difficulty or mining cost, so we have some kind of “floor” that is not cero according to the cost of mining.
M.R. Reed: “Do we have the technologies/computer experts that understand how this crypto currencies work to direct them on the wright way and do you need more tools to do your job?”
M.R. Jay Clayton: “We created a group that have done an exceptional job in a short period of time and they have identify some of the issues we talked about, but in response to your second question m.r. Reed, In an emergent area like this could you use more “Horse Power”? Of course yes!
M.R. Cotton: “What are your thougts on the potential value of BlockChain tecnology?”
M.R. J. Christopher Giancarlo: “The potential applycation its enormous in finantial and banking industry.”
M.S. Cortez: “Agencies like KODAK or Burguer King have been implementing BlockChain as an opportunitie to pump up prices without a clear business plan. Are this agencies using Bitcoin to pump prices on their own benefit?”
M.R. J. Christopher Giancarlo: “This agencies that are misrepresenting BlockChain and dont realy use it as they say, are going to be checked and we are very aggressive with this kind of treatment.”
- Finally the G20 “Crypto summit” ended with a two remarkable phrases:
M.R. Jay Clayton, U.S. Securities and Exchange Commission. (SEC) Chairman.
-We want people to risk capital but we wanted them to do it right.
WASHINGTON – U.S. Senator Mike Crapo, Chairman of the United States Senate Committee on Banking, Housing and Urban Affairs
-The work you are doing on this critical area at the current financial legislation is huge.