As the Senate gathers on Tuesday to question top markets, it looks as if cryptocurrencies will be in the spotlight. It goes without question that one of the topics they’ll be discussing will regard a more effective way of regulating virtual currency.
Jay Clayton, chairman of the Securities and Exchange Commission and Christopher Giancarlo, the chairman of the Commodity Futures Trading Commission are both scheduled to deliver testimonies before the Senate Banking Committee. This is all set amidst concerns around the world that are centered upon the security risk involved with cryptocurrencies as well as the dangers they pose to investors and the financial system as a whole.
The hearing scheduled after a Bitcoin has plunged to an all time low in the recent months. A low that was no doubt inspired by a regulations places on Bitcoin all over the world. This has also been followed up by banks refusing to let clients purchase Bitcoin with their debit and credit cards.
On Tuesday we can expect to see lawmakers interrogate Clayton and Giancarlo on just how well the SEC and the CFTC can watch over exchanges and protect investors from cryptocurrency’s extreme fluctuation. They also have to talk about how they can protect investors from fraud brought on by crooked traders bent of stealing coins.
Giancarlo and Clayton will use their time before the senate to present the efforts they’ve made to police the cryptocurrency market. The will also focus most of their time on discussing limitations in the regulatory structure.
This meets can mean big news for Bitcoin, Ethereum and the rest of the virtual currencies currently on the market. It can mean stability and a thriving future for the coin or it can mean even tighter regulations that will no doubt send virtual currencies dwindling to new lows.