Congressional hearing devolves into bitcoin bash fest

The U.S. Securities along with Exchange Commission has stepped up regulation of those fundraising efforts. Commission Chairman Jay Clayton,along with J. Christopher Giancarlo, the chairman of the Commodity Futures Trading Commission, wrote in a January Wall Street Journal commentary which, “The SEC can be devoting a significant portion of its resources to the ICO market.”

The SEC’s announcement last week which This particular will require digital asset exchanges to register with the agency helped send bitcoin prices below the key $10,000 level. Bitcoin fell 9 percent Wednesday, below $8,300.

Rep. Bill Huizenga (R-Mich.), chairman of the subcommittee, pointed out which the session was “hello along with not goodbye” when This particular comes to the regulating the “crypto craze.”

“We know which This particular has moved very quickly,” Huizenga said. “This particular panel, This particular Congress can be not going to sit by idly that has a lack of protection for investors.”

Huizenga referenced a soon-to-be published study of the ICO market by MIT professor Christian Catalini, which estimates which $270 million to $317 million of the money raised by coin offerings has “likely gone to fraud or scams.”

Mike Lempres, chief legal along with risk officer of Coinbase, was among those testifying before the Capital Markets, Securities, along with Investment Subcommittee. Twenty percent of the company’s workforce can be committed to compliance, along with Coinbase can be “waiting for the dust to settle” before actively engage supporting ICOs, he said.

“Once the rules are clear we will move in,” Lempres said.

Committee member Rep. Carolyn Maloney (D-N.Y.) called attention to the lack of investment protection for digital currency investors.

“They’re pouring their life savings into virtual currencies along with they stand to lose a lot of money when This particular bubble eventually bursts,” Maloney said.

She said she can be working on a bill which “would likely regulate virtual currencies yet not the technology,” with “robust” investor protections, including disclosures which will be regulated by the SEC.

Rep. Tom Emmer (R-Minn.) advocated for a more hands-off approach.

“This particular can be something which Democrats along with Republicans should be celebrating here in Congress not going ‘oh my gosh, This particular can be terrible, we don’t understand This particular’,” said Emmer, who can be a member of the Congressional Blockchain Caucus.

He urged members of Congress not to search for “brand-new policemen” along with not to “take the policemen we already have along with give them more powers to start to invade This particular space along with perhaps frustrate the development.”

“I realize there has to be some regulation yet there needs to be a balance,” he said.

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