CYBERWAR/SEC/TRADE DEALS: “Digital currencies such as bitcoin were in the spotlight again on Tuesday [2-6-18] as lawmakers in the U.S. Senate questioned top markets watchdogs over how to better regulate the highly volatile and risky emerging asset class.
Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), and Jay Clayton, chairman of the Securities and Exchange Commission (SEC), gave testimony to the Senate Banking Committee amid growing global unease about the risks virtual currencies pose to investors and the financial system.
The hearing follows a rout in the price of bitcoin, which has lost about half its value since the start of the year on concerns ranging from a global regulatory clampdown to a ban by some banks on using credit cards to buy bitcoin.
In his opening remarks, Senate Banking Committee Chairman Mike Crapo raised concerns about the volatility, investor protections, and the risks posed by cyber criminals highlighted by the recent theft of $530 million from Japanese bitcoin exchange Coincheck by hackers… But Crapo also said the underlying virtual currency distributed ledger technology has ‘significant positive potential’ to increase investor access to the financial markets.”
-Michelle Price and Pete Schroeder, “Senate spotlights virtual currencies as bitcoin price swings,” Reuters, Feb. 5, 2018 10:06pm