Virtual Currencies: The Oversight Role of SEC and CFTC

Discussion in 'Crypto Forum' started by Digi_Marc, Feb 6, 2018.

  1. Digi_Marc

    Digi_Marc BoxInitiate

    Jan 12, 2018
    My general notes on the debate

    Permalink: Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission |

    - We owe it to encourage new generation's enthusiam in this new market
    - Regulators must play a role in protecting from market manipulation.

    Chairman Crapo: "interesting, and growing new area of financial challenge"
    - "Neither CFTC and SEC have complete jurisdiction. Do we have sufficient jurisdiction?"
    Clayton "We should all come together, and have a coordinated plan in dealing with the market"

    Clayton: "International nature of this market is why patch work may not work."
    Giancarlo: "Challenge of global market is a challenge we face in many regards...this area requires alot of new thinking."

    Shelby: Theres no intrinsic value in cryptocurrency
    - Giancarlo: Some economist have correlated mining to provide a value to cryptocurrency.
    - Clayton: I'm not seeing the benefits manifesting themselves in the market place... In the securities world, there are rules in how much you have to tell someone.

    Rounds: How do you tax it or recognize income?
    - Giancarlo:
    - Clayton:

    Sen. Rounds: Are they commodities or are they securities or both?
    Giancarlo: Bitcoin has characteristics of many things.. Medium of exchange is currency like. Store of value is pretty much like an asset or commodities...CFTC is looking for fraud and manipulation.

    Clayton: Regulatory arbitrage is an issue in the market.

    Pump & Dump
    Clayton: This is one of the things I am worried investors don't understand.
    Giancarlo: There are more actions to come and we have enforcement jurisdiction.

    Clayton: We have an office on investor education.
    Giancarlo: We doing alot of work in consumer education.

    "What the point of disclosure (in traditional stocks) if no one is reading it? I don't think the disclosure laws we have don't work."

    Giancarlo: It has been a tradition.

    Warner: You have coins, like ethereum, that is a platform...Does that fall under securities?

    Giancarlo noted that the ability to have data in real time has extraordinary features to legislative work.

    Sen. Cotton: What are the factors that drives the volatility of bitcoin?
    Giancarlo: In our world we are used to volatility in asset class.
    Clayton: I don't really know. They are not correlated to sovereign currencies. Thats one of the issues before us. An asset that is highly volatile is not an effective means of exchange.

    Menendez: My sense in cryptocurrency is that it is to evade.

    Clayton: If you are promoting securities, you are taking on securities law liability

    Menendez: Why is th SEC not approving ETF?
    Clayton: Price history and volatility are issues we have let the community know is our concern.

    Moran: Doesn't ETF, just like options, reduce the volatility and reduce risk. Don't additional products left alleviate some of the challenges we face or is bitcoin so unique?
    Clayton: CFTC products can take both sides, where as ETFs tends to be a long product. If we get comfortable with those rules, then we can move on.

    Masto: If virtual currencies are lost (hacked) what can we do to protect from that?
    Giancarlo: We don't have regulatory oversight on exchanges to implement securities protection.

    Of the $4B raised from ICO, not 1 ICO has registered with SEC and not 1 upcoming ICO is registered.

    *Just general notes* Not exact qoutes. Cheers
  2. boxmining

    boxmining Administrator
    Staff Member Moderator CoinMaster

    Nov 6, 2017
    Wow great summary! the debate was pretty epic and great to see such a strong defense for crypto
    Digi_Marc likes this.
  3. Digi_Marc

    Digi_Marc BoxInitiate

    Jan 12, 2018
    Exactly. I think giancarlos opening remarks highlighting the enthusiasm of younger generation to investing is something that strikes a chord with a lot of individuals in the market.

    I like when he said "We owe it to this new generation, to respect their interest in this new technology with a thoughtful regulatory approach."

    I honestly was impressed by the way they both took a firm stance with regulation without overreaching its current roles. I'd hope the congress invites blockchain leaders into the subsequent meetings.
    LouiePro likes this.
  4. LouiePro

    LouiePro Moderator
    Staff Member Moderator Founder CoinMaster

    Nov 22, 2017
    @Digi_Marc Yes Yes Yes and Yes! Great summary!

    I lol'd on this one:
    I know! What a relief that was to hear..
    Giancarlo for PRES! No, @boxmining / Giancarlo (VP) 2020!!!!
    Thanks for the cliffnotes!
    Digi_Marc likes this.
  5. Knowledge Seeker

    Knowledge Seeker BoxSuperMember

    Nov 10, 2017
  6. Marrytompk

    Marrytompk BoxMember

    Mar 18, 2018
    Hi, What do think about I saw Celcius network already raised 30M usd, do you think Welltrado could raise more?
  7. DanielAl

    DanielAl BoxMember

    Apr 10, 2018
    What harm do intermediaries do to the progress of the world

    We have already talked about how intermediaries harm producers and buyers of products. The negative impact on production chains, which is exerted by intermediaries, is great, and it must be eliminated.

    However, these questions arise quite often. They affect a narrow circle of people. And if we limit ourselves to the consideration only of such problems, it seems that the mediators cause very limited harm.

    However, it is not so. The fact is that intermediary activities stifle the entire world economy and hinder technological progress.

    Judge for yourselves, today there are many manufacturers who want to produce new products. They have a desire to improve the world and give customers something new, to promote technological progress.

    But no manufacturer will do this if it does not make a profit. And the income will appear only when there are consumers.

    To find out whether the market needs products, the manufacturer begins to conduct market research. And that's where the problems start.

    The fact that intermediaries today occupy a position that allows them to dictate the parameters of products for suppliers. The opinion of the intermediaries replaces consumer preferences. Intermediaries are closer to the manufacturer than end-users. And companies that produce products communicate with intermediaries.

    And those, in turn, are absolutely not interested in technological progress. They are satisfied with the current state of Affairs: they do not do anything useful, but get a stable income. At the same time, they are well aware that technological progress can knock the soil out of their feet. And they strongly discourage it.

    Good to make it very simple. It is enough to inspire the manufacturer that innovative products are not in demand by the market and will not be sold. The company, which produces products, does not want to work at a loss, and will postpone the implementation of the project until better times.

    But there is a demand for new products! However, information about this does not reach the manufacturer. Fortunately, today there are decentralized platforms for P2P-interaction. Using these platforms, the manufacturer will receive reliable information about the needs of the market from those who form this market - consumers. Ultimately, this will lead to breakthrough innovations and new developments in mass access.

    One of the first such developments was the Yodse platform. This is a unique decentralized space for interaction between consumers and manufacturers. Yodse users will be able to contact each other directly and work without third parties.


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