Watching the US Senate hearing on regulating cryptos. Key points:
- The regulatory offices suggest no need to create a department just for Crypto regulation/enforcement).
- Further regulation is not necessary.
- Main issue are ICOs and scams. The Chairmen said they are working together on preventing scams and have already laws in this regard, to protect consumers.
- 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.
- Blockchain and cryptocurrencies are linked and strict regulations on crypto could prevent technological 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
- One senator talks about the recent Coincheck hacking. Chairmen replies that their authority is limited, since foreign exchanges could be used. It's a gap, doesn't fall under SEC/CTFC regulation.
In general this is very positive news and means that Regulation is not needed currently due to market size and existing laws that prevent Scams/Confidence tricks and pyramid schemes.