Menu

Search

Menu

Search

Need for macro-perspectives of regulators for global impact - eToro on CryptoCongress

eToro sheds some light on two Congressional hearings on cryptocurrencies and recently announced that they have got expansion plans into the US with a crypto trading platform.

Mr Guy Hirsch, US Managing Director of eToro platform shares his notion on the above developments.

The firm is a global community of over ten million people, which is currently regulated in Europe by Cyprus Securities and Exchange Commission and regulated in the UK by the Financial Conduct Authority and enables its clients to invest in the asset-class they wish to, from cryptocurrencies to commodities.

What exactly the subject matter: On Wednesday, the two distinctive congressional committees have got a mixed bag of messages on cryptocurrencies, at the hearing, the full gamut of opinions ranging from prohibition to encouraging this newly invented asset-class were observed.

Upon first announcing the hearing on oversight of new assets in the digital age, the Chairman of the U.S. Representative for Texas's 11th congressional Committee on Agriculture, K. Michael Conaway (TX-11) issued the following statement: "This hearing will shed light on the promise of digital assets and the regulatory challenges facing this new asset class. Our committee has a deep interest in promoting strong markets for commodities of all types, including those emerging through new technology."

While the House Financial Services Committee Monetary Policy and Trade Subcommittee met to hear testimony examining the extent to which the U.S. government should consider cryptocurrencies as money and their potential effect on domestic and foreign economies. Leading the witness was Jerome Powell, the head of the Federal Reserve, who raised the cause of concerns on crypto-assets, specifying the committee that “there are investor and consumer protection issues.” Powell’s testimony was expected, but what came next wasn’t. Mashable reported that Rep. Brad Sherman (D-California) called on cryptocurrencies to be banned.

“We should prohibit U.S. persons from buying or mining cryptocurrencies,” Sherman told the committee. “Mining alone uses electricity which takes away from other needs and-or adds to the carbon footprint. As a store, as a medium of exchange, cryptocurrency accomplishes nothing except facilitating narcotics trafficking, terrorism and tax evasion.”

In response to the above stances, Mr Guy Hirsch of eToro Group Ltd. quotes that, “we encourage regulators to hear more from good actors and companies with an international presence since they would be valuable to this discussion in Congress. Cryptocurrencies are by design global assets and companies with the global perspective are uniquely positioned to help regulators better understand the diverse regulatory approaches and best practices. Any law that Congress will pass affecting cryptocurrencies will have the global impact on foreign companies that are doing business in the US or want to enter the US market and therefore it is important for US lawmakers to facilitate dialogue with other nations on this matter."

“Digital assets present unique challenges for regulators because they have properties that don’t apply to our current understanding of securities or commodities. While it makes sense to classify some tokens as securities, others are more accurately classified as currency or commodities, or perhaps a new asset class altogether. Our industry should provide education and support for regulators to define a framework that will lead to the logical and growth-oriented classification of each crypto.” Hirsch added.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

October 20 01:30 UTC Released

CNChina House Prices YY

Actual

7.9 %

Forecast

Previous

7 %

October 20 00:00 UTC Released

AEM3 Money Supply YY

Actual

8.4

Forecast

Previous

7.3

January 31 00:00 UTC 378369378369m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 378369378369m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 390189390189m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 378369378369m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 390189390189m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 378369378369m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 378369378369m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 378369378369m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.