Regulators push for 'coordinated' approach to bitcoin trading

Bitcoin dropped to $6583, lowest level since mid-November

"The now applicable regulatory framework for cryptocurrency trading was not designed with trading of the type we are witnessing in mind", Clayton said.

The potential of more stringent regulation of Bitcoin and other cryptocurrencies in the US takes center stage on Tuesday in a Senate Banking Committee hearing.

Following opening remarks from the SEC's Jay Clayton and the CFCT's J. Christopher Giancarlo that asserted their agencies' authority to regulate elements of the crypto market, a major focus of the hearings was to determine which agencies would be responsible for meaningfully enforcing what - a question that requires defining what exactly a cryptocurrency even is. Cryptocurrencies and Bitcoin reached new all time highs that were completely unexpected for most of the financial analysts. In particular, they were testifying to what should and could be regulated in the cryptocurrency space as well as providing a broader outlook on the long-term future of virtual currency markets as well as blockchain.

The SEC has said public offerings comprising digital tokens, known as initial coin offerings, are securities and subject to the same investor protection rules as equity market offerings.

Clayton continued to say that "those who engage in semantic gymnastics or elaborate re-structuring exercises in an effort to avoid having a coin be a security are squarely in the crosshairs of our enforcement provision". "I believe every ICO I've seen is a security..." Overall, cryptocurrency itself wasn't a main concern, but Clayton was concerned about ICOs giving fraudsters access to money they did not deserve.

They are not following securities laws.

"We have made it clear what the law is, ” he said. I don't buy that for a moment".

Russia PM Medvedev Slams 'Unfair and Unlawful' IOC Verdict
One of them being the invitation of around 169 athletes with no doping history to compete as neutrals. That is why Bach's statement is disappointing and oppressing.

Clayton categorized that ecosystem into three sections: technology (distributed ledger technology and blockchain); cryptocurrency, which he described as "replacement for dollars", and ICOs, which he likened to stock offerings.

"Hackers may understand the technology better than market participants", Clayton said at the meeting.

Clayton's comments may spark pushback from digital currency advocates.

The pair also talked about the unregulated nature of cryptocurrency exchanges and called for an interagency coordinated plan among states, federal regulators and the SEC and the CFTC to address a common misconception among investors that these types of platforms are regulated. "But that's one of the issues before us - there does appear to be a lot of volatility compared to the medium they are supposed to be replacing".

"We don't want to approve an ETF with a cryptocurrency underlying it until we can get comfortable with those issues", he added.

Reuters reports that the hearing will be a fact-finding exercise to clarify the powers of the SEC and CFTC to regulate cryptocurrency exchanges, and how the agencies can protect investors from fraud.

The latest selloff, pushing the price down, is being driven by growing concerns of increased government regulation and potential price manipulation in the market.

Related news:

Hot News

isis-killer-beheading-video-story-top Publix Reverses Policy, Will Cover PrEP for Employees
Feb 09, 2018 - 08:26
He confirmed that the former Publix employee, a Georgia resident, had been denied coverage - the only such case he'd seen. Gilead Sciences, its manufacturer, estimated USA usage at 120,000 people previous year .

isis-killer-beheading-video-story-top South Africa opposition demands end to Zuma impasse
Feb 09, 2018 - 08:25
This comes in the wake of growing frustration by political parties, including the ruling party itself, over Zuma's imminent exit.

isis-killer-beheading-video-story-top ACA exchange enrollment dropped by less-than-expected 3.7%
Feb 09, 2018 - 08:25
Sign-ups through the federal exchange fell 8.2 percent here previous year , down to 1.13 million from about 1.23 million in 2016. The president also often publicly referred to Obamacare as "dead" or "over".

isis-killer-beheading-video-story-top Jesse Lingard apologises for 'totally unacceptable' tweet during Munich air disaster service
Feb 09, 2018 - 08:24
Carlisle's Brunton Park was transformed into Old Trafford's "Theatre of Dreams" for the drama back in late 2010. Lingard attracted criticism from United fans for the tweet but later posted an apology.

isis-killer-beheading-video-story-top Google are reportedly developing a subscription-based game streaming service
Feb 08, 2018 - 00:56
We've reached out to Google for a comment on the existence of the games console and will update this article when we hear back. The report pointed out that Google has previously pursued gaming projects, however the company failed to follow through.

isis-killer-beheading-video-story-top Maldives' top judge arrested as state of emergency declared
Feb 08, 2018 - 00:55
Then Indian prime minister Rajiv Gandhi dispatched 1,600 troops and it was only a matter of hours before order was restored. That has been the old, familiar political script in the Maldives and a handful of countries in the neighbourhood.

isis-killer-beheading-video-story-top Selena Gomez, Tom Holland and Emma Thompson Join 'Doctor Dolittle' Reboot
Feb 08, 2018 - 00:55
He also appears in Dan Fogelman's Life Itself , which sold for a whopping $10 million in a USA rights deal to Amazon Studios. On the television side of things, Gomez is the executive producer of Netflix's runaway hit drama 13 Reasons Why .

isis-killer-beheading-video-story-top Amtrak engineer voiced concerns about dying before fatal crash, brother says
Feb 08, 2018 - 00:54
Officials had initially said 70 people with injuries were transported to hospitals for treatment, but later adjusted the figure. After a recent round of train accidents and budget tightening he'd voiced concerns something could happen to him on the rails.

Stock Update for Lumber Liquidators Holdings, Inc (NYSE:LL)
Feb 08, 2018 - 00:52
The institutional investors in our partner's database now own: 76.09 million shares, down from 77.63 million shares in 2017Q2. ValuEngine lowered Digital Realty Trust from a buy rating to a hold rating in a report on Wednesday, October 18th.

isis-killer-beheading-video-story-top Here's how you can help the family of activist Muhiyidin d'Baha
Feb 08, 2018 - 00:52
A GoFundMe page was set up for funeral costs and it has raised more than $14,000, despite only having a $7,500 goal. The report says a bloody trail leading to d'Baha circled two blocks, and a bloody bicycle lay across the street.

isis-killer-beheading-video-story-top Indian PM Modi's wife survives fatal auto crash
Feb 08, 2018 - 00:52
Jashodaben, 65, who is a retired school teacher, lives in Brahmanwada, a village located 35 km from Modi's hometown in Vadnagar. She is getting primary health check-up done. "An investigation has been launched into the cause of accident", said the officer.

isis-killer-beheading-video-story-top Ozone layers continues to thin
Feb 07, 2018 - 02:05
That led to governments phasing out the CFCs , which led to the first results of healing of the ozone shield above the Antarctic. That is the case this year and at the moment there is significant ozone depletion over northern Ireland and Scotland.

isis-killer-beheading-video-story-top US, Russia comply with nuclear arms deal limits
Feb 07, 2018 - 02:04
Last year, Trump derided New START as one of the "bad deals" made by former President Obama, saying it was "one-sided". Through a statement, Russian Federation says they have conformed to their adherence to the New START Treaty.

isis-killer-beheading-video-story-top PUBG Anti-Cheat Update for PC Delayed, Reshade Blocked Now
Feb 07, 2018 - 02:03
ReShade not only behaves like a cheat program but can also be used for cheating, and must therefore be blocked. Bluehole Studio has announced that it will release its anti-cheat update for PlayerUnknown's Battlegrounds .

isis-killer-beheading-video-story-top American woman refuses to be named after winning $712 million
Feb 07, 2018 - 02:03
McIntyre stated that he understood the plaintiff wanting to remain anonymous, but he said that rules are rules. The New Hampshire Lottery Commission requires the victor to sign a ticket before claiming their prize money.