According
to Giancarlo, the bitcoin has
a multifaceted character because it can be used as a means of
payment, as a long - term asset and has elements of a commodity (merchandise).
Bitcoin and many of its
other cryptocurrency counterparts actually have elements of all different asset
classes, whether they meet as a means of payment, or are a long-term asset We
see commodity elements in it (bitcoin) that are subject
to to our regulations but depending on the regulatory regime that is being
analyzed, it has different aspects of all that.
J. Christopher
Giancarlo
President, CFTC
Giancarlo came to
buy bitcoin with gold, saying that
this cryptocurrency has similar aspects to precious metal, only that bitcoin
"is virtual, it is digital". On the other hand, Giancarlo argued
that bitcoin may not be an ideal means of payment, and that it is better as an
asset to buy and retain in the long term.
Regarding the regulatory
framework for cryptocurrencies, Giancarlo explained that
the CFTC operates with guidelines that were established in 1930, and
that since bitcoin is a fairly novel asset, it is the work of the American
Congress, and not the CFTC, to decide whether they should be develop
and implement new regulatory policies for this new type of assets.
Due to the multifaceted
nature of cryptocurrencies, their regulation can be problematic, since
their mere classification is not easy and the authorities run the risk of
regulating cryptocurrencies according to notions that were thought for other
financial instruments.
Also Read: Most Popular Crypto Exchanges in 2021
For this reason, some
government agencies, such as the Securities and Exchange Commission of the
United States (SEC), suggest giving cryptocurrencies a classification of
values. This is a definition that is comfortable since it allows to set
limits and sanctions to those who do not follow the rules currently in force.
This same
multifaceted feature seems to return to unclassifiable cryptocurrencies by
conventional standards, so only new theories and definitions can lead to
appropriate regulations.
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