US Senate Cryptocurrency Hearing Highlights: Education needed

US Senate Cryptocurrency Hearing has taken place yesterday, while the key officials have spoken in regards to the cryptocurrencies, Blockchain an ICOs. What are the key conclusions that the US authorities have made?

7 February, AtoZForex Yesterday, we reported that the US Regulators Plan Cryptocurrency Exchanges Oversight, as Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), and Jay Clayton, chairman of the Securities and Exchange Commission (SEC), will both provide the testimony to the Senate Banking Committee.

US Senate Cryptocurrency Hearing Highlights

Today, Jay Clayton has stated the following:

“We may be back with our friends from the U.S. Treasury and the Fed to ask for additional legislation.”

Mr. Clayton has stated this as a response to one of the few questions about whether the SEC has enough authority to regulate the cryptocurrency market. The meeting of the Senate Committee on Banking, Housing and Urban Affairs has taken place yesterday. CFTC has also been taking part in the meeting.

Both chiefs of the key US regulators have signaled that regulation of the cryptocurrency market is not immediately required. This is despite the growing concerns about the state of the technology and the possible harm that might arise for the unexperienced US consumers. Mr. Clayton has stated:

“I can’t give a definitive answer.”

How US protects citizens from the crypto risks?

The remarks were also accompanied by the questions from senators, which have been noting a flow of negative news that pressured the prices of the majority of cryptocurrencies. Senator Sherrod Brown has stated:

“Sometimes it seems that scam artists and hackers know more about the technology than most market participants. That should concern all of us.”

Mr. Giancarlo has appeared more positive in regards to the cryptocurrency market. He has noted that his agency has already carried out some activities to protect the US citizens in this sense. This includes the creation of an innovation lab that has its partial focus on Blockchain. He also highlighted the launch of the US futures markets, which are currently operating under CFTC regulatory wing.

However, Mr. Giancarlo also stated that CFTC’s reach is quite limited, since cryptocurrency market is operating globally.

Conclusions drawn

While both regulators have acknowledged that the cryptocurrency market is too widespread to regulate it, they noted that educating the population might be one of the solutions on the way to protect investors.

Mr. Giancarlo has stated:

“Seniors seem to be the prey of choice for fraudsters and manipulators. Whether it’s precious metals, whether its foreign exchange.”

In addition, authorities agreed on the fact that despite its global reach, cryptocurrency market is still relatively small to have any significant effect on the national economies.

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