Watched the US Senate hearing on regulating cryptos. Guys, we're going to the moon, very positive news. Here's the key takeaways 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.
- When asked about whether there's an intrinsic value to BTC, one chairman said that while he can't understand the details, there seems to be intrinsic value linked to the underlying technology of Bitcoin, not just market demand.
- 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 libraries to research Bitcoin).
- 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.
