Jordan Belfort Says the SEC Will Not Get Involved in Bitcoin
The ‘Wolf of Wall Street,’ Jordan Belfort, has been talking at CNBC about virtual currencies. He commented that governments do not want to give traction to virtual currencies because they don’t want to give away their monetary policy.
He mentioned that Bitcoin, the most important virtual currency, is not a scam. However, he explained that around it there are several scams. For him, the market is not so transparent and there are several scams happening with ICOs and other tokens.
Later, he was asked about the U.S. Securities and Exchange Commission entering the market to control the space and reduce the scams that take place in the industry. About it he stated that the SEC will not enter into the game.
“I don’t think that’s gonna happen,” he answered.
Indeed, he mentioned that governments are already stepping in trying to squash Bitcoin and other virtual currencies. And in the future, according to Mr. Belfort, governments will be even more aggressive than now.
Apparently, there will be some issues related to market manipulation that will arise in the future. He said that what we have lived in the past is just the tip of the ice.
Belfort said that it is easier to launder money with Bitcoin than with the traditional banking system. He has also noted that there are some difficulties about laundering money with Bitcoin because the funds need to be converted back into other fiat currencies, which may be more difficult.
At the end of the interview he said that the governments will not be allowing Bitcoin to grow because they have been spending millions of dollars to stop money laundering in the market. In addition to it, he mentions that there are some issues with Bitcoin, including energy consumption and slow transaction times that make it very inefficient.
Furthermore, he said that there should be criminal charges against scammers and they should go to jail.
Finally, he said that Tether will be one of the reasons why the market will fall again in the future. Tether (USDT) has been involved in some controversies about the funds it has to back each of the coins it has in the market – which are linked to the USD.
According to some reports, Tether has been used to manipulate the market when Bitcoin was falling under certain levels. Until now, Tether was not able to prove where they have stored their funds to back all the tokens they have issued.