HOLD&CHILL:
Watching the US Senate hearing on regulating cryptos. Guys, we're going to the moon, very positive news. Here's the key takeaway so far:
- The regulatory offices have a hiring freeze right now, so budget is very constraint (suggests no need to create a department just for crypto regulation/enforcement).
- They already have a team in place, made of economists and technology specialists, which are researching crypto and already made progress on preventing scams. Suggests it's enough for now and further regulation is not necessary.
- Main issue are ICOs and scams. The chairmen said they are working together on preventing scams and have already enforced non-crypto related laws in this regard.
- Bitcoin should not be considered a security, but rather a commodity, one of the chairman even refers to the term HODL and what it stands for, says it's used primarily as a store of value. Says his 30-year old niece holds Bitcoin.
- Blockchain and cryptocurrencies are linked and strict regulations on crypto could stomp tech progress.
- Crypto has an utility on a larger scale and not just for trading.
- The crypto market is very small scale and needs time to develop, to see if regulations are in fact needed.
- On educating potential investors, chairmen say the crypto community is educating itself and understand the risks (they say the community goes to the library and ask for books about Bitcoin, who does that? :))
- One senator talks about the recent Coincheck hack. Chairmen replies that their authority is limited, since foreign exchanges could be used. It's a gap, but it doesn't fall under SEC/CTFC regulation.
In general, in regards to regulation, the answer is that it's inconclusive. It might be needed, but for the moment there's no threat due to the lack of maturity of the crypto market.
CFTC Chairman Gaincarlo just made the most bullish statements in front of the Congress
- His kids were not interested in stocks but are hooked onto cryptocurrencies, and the government has to respect that, and develop a positive outlook.
- While scams and fraudsters must be cracked down, the general market must be allowed to develop. A working group of SEC, FINCEN, CFTC and other group members are working on identifying scams in this space.
- When asked if Crypto has any "intrinsic value"? - There is an intrinsic value and relation of the value of bitcoin and the cost of mining it.
- Price of Bitcoin is just one publicly traded company like McDonalds. In comparison, global money supply is 7.6T. And since Bitcoin has been compared to digital gold, value of all gold in the world is 8T.
- HOLY SHT.. He just mentioned "HODL". Hahaha - According to him its "Hold on for dear life". Another version