Bitcoin is part?currency, part security, and part digital coin in accordance with the head of the Commodity Futures Trading Commision (CFTC).
Therefore, the President of CFTC struggles to define Bitcoin. When the ecosystem around Bitcoin and cryptocurrency will continue to evolve the variety of regulatory bodies in the us alone still struggle to define what so to make a framework where it can be controlled. That is why, its control is hard, in fact there is nothing that can control to lessen this technology, that it was recently pointed out its prohibition now in view of the impossibility, it’s thought to be regular, they also do not know what it is, because it is in any parts and none.
Today the Chairman of your CFTC, J. Christopher Giancarlo, made?CNBC’s?Fast Money?and announced that Bitcoin is probably a bit of everything. Speaking with host Melissa?Lee the Chairman said?”Bitcoin and many its other virtual currency counterparts obviously have elements of the various asset classes, whether they’re meeting payment, it could be a long-term asset”. From this perspective it is far from possible to suppress by way of Law, that efforts to cover a complete concept, it will be something that the authorities are unaware of how to catalog this new disruptive technology, which arrived to revolutionize the new way of exchanging value.
Conceding that cryptocurrency is actually to define from the criteria which the various financial regulatory?bodies inside usa use, Giancarlo took to explain that the majority of the asset?definitions they choose were established in the reform quantity the 1930’s which make it very difficult to put on a currency depending on technology that may be only about a long time old. This is possible to be happening, since traditional financial industry, residing in itself, without able to see there presently exists new types of doing transactions, so that the idea of ??money made by the blockchain-bitcoin technology emerged, this left the business on the verge of despair.
Therefore, The Chairman?was referring to the Howey Test of 1946 the fact that the?SEC?has long been suggesting cryptocurrency?exchanges take a look at in order to self-determine whether or not are involved in trading securities this is. That is, a model created in the 20 th century, is used to a technology in the XXI century is risky, traditional economies were anchored in concepts that will not apply to cryptocurrencies, therefore, day by day that passes technologies with the cryptocurrencies advance, as the bureaucracy stays stationary and inert.
When inspired to define what benefit with Bitcoin would affect the CFTC Giancarlo testified that;
“We see aspects?commodity?on it that are cause to undergo our regulations, but based on which regulatory regime under consideration, it has different facets of all of that.” Therefore, it is evident that the laws and regulations of the traditional financial industry typically are not applicable to cryptocurrencies as well as technology.
Before making a specific comparison between gold and Bitcoin which he later confused saying “That it is virtual, it really is digital”. There are many inaccuracies, because after even more than 10 years the bureaucracy has not understood that technology can displace the existing way of making money without the traditional banks, which control or control the banking and securities, therefore are at doors to new procedures for doing business.
Where he did show some regulatory progress has been is in the licensing of Bitcoin futures contracts traded at the CME and CBoE that he or she said are functioning quiet well.
He described Bitcoin being a lot better as a long lasting store of wealth then the perfect form of payment and not mention other cryptocurrencies like Bitcoin Cash which created specifically as much better to use different payment.
Therefore, the regulation will not be resolved soon, there is still much to legislate. As indecisiveness being the interview was over the definition and future regulatory status of Bitcoin, the Chairman did express that in his mind Bitcoin and also the underlying blockchain technology came hand in hand. That to fight against one while accepting other would stymie the technological evolution in the ecosystem. Therefore, it is clear it is a being that was born together, some banks want to develop blockchain technology and leave bitcoin out, which is not possible, it’s something similar in the Intranet and the Internet, could what happened.
Before he finished the chairman declared regulating Bitcoin will likely be complicated and they didn’t look at the matter being resolved soon, adding: “At eliminate the day, it’s for?Congress, rather than regulators, to decide whether new policies really should be evolved for these new asset classes,”
In summary, it can be a reality that looking to separate the blockchain-bitcoin siamese is a task this is not possible, you will need years and the result may be the same, the disruptive technologies are here to stay, now a really development begins, for any good for the ecosystem of cryptocurrencies along with what they represent. It waits thorough ads.