The crypto markets had a quick reversal after hearing the positive news stemming from the highly anticipated SEC meeting on the oversight of virtual currencies. After several weeks of regulation related FUD and the crypto market losing billions in market cap, the tone set in the meeting that cryptocurrencies and blockchain technology is the future, have given holders a ray of hope. CFTC Chairman Chris Giancarlo stood before congress in defense of the new virtual world.
Some Key Points:
- The Government must respect the new generation and develop a positive outlook to the changes we bring, especially in technology
- While new markets and innovations should be allowed to freely grow, scams and frauds (specifically ICOs) taking advantage of the youth must be controlled and regulated. A group consisting of the SEC, FINCEN, CFTC and other group members are working on identifying scams in this space
- Don’t dismiss Bitcoin for blockchain, if there was no Bitcoin, there would be no blockchain or distributed ledger technology
- 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
- It was suggested things would have been different in 2008 if we had distributed ledger technology that was up to the minute where we could see the creditors and debtors transactions and values
CFTC Chairman Giancarlo: “We owe it this new generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response, not a dismissive one.” pic.twitter.com/0v4M5gExfc
— Coin Center (@coincenter) February 6, 2018
This meeting had a very different tone than prior regulatory crypto meetings in the past. It was not rife with rumors and speculation but more a realistic take on the technology as well as acknowledging the benefits of change the new generation will bring. There were no mentions of buying drugs and conducting illegal untraceable activities, some of the recent negative stigma crypto is trying to shed. There was a very positive and level-headed outlook that stating crypto and the blockchain is here to stay. That’s not to say that nothing will change, we will face a lot of changes in regulation in the next few years. At this point giving the crypto community the legitimacy that this isn’t some fake internet money ponzi scheme that will be banned is really all the momentum that we need.