The 6th of February this year marks a major moment in cryptocurrency as both SEC chairman Jay Clayton and CFTC chairman J. Christopher Giancarlo stood before senate in a hearing about virtual currency.
Top 7 SEC and CFTC Takeaways About Cryptocurrencies & ICO Tokens
There are numerous comments made, but there are seven main points that consumers should take heed of from the hearing that could apply to them:
- Multiple senators questioned the two leaders on how budgetary restrictions and hiring freezes would impact the industry. Chairmen Giancarlo and Clayton emphasized how much they do in their positions but made it clear that economists and technologists that understand the industry would be helpful.
- With great exuberance and excitement, Giancarlo emphasized how much reach the technology behind cryptocurrency could have. With a much calmer demeanor, Clayton discussed how other industries may thrive, but it will not take away from the success and unforeseeable losses that occur.
- The majority of ICOs and tokens are a form of security within the industry. Every ICO has its own rules and rates, but the key is to protect the participant’s fiat and cryptocurrency at the same time.
- Even though it is a concern for senators like Mark Warner of Virginia, Chairman Giancarlo expressed optimism of how quickly cryptocurrency came into the industry. However, cryptocurrency financial products may not be the most lucrative investment.
- The CFTC and the SEC have taken three major actions against fraudulent and noncompliant activities, ensuring that consumers are not “duped” into investing in a currency that is false. The company even filed a suit against AriseBank, which is an ICO from Dallas, Texas.
- The regulation is still being established at the state level, which makes it difficult to perform local transactions.
- Right now, there’s very little risk to getting involved with a legitimate cryptocurrency company. It is still only a small percentage of the global economy.
With these items in mind, it is important for individuals to take the time to do their research to participate in cryptocurrency in any capacity.