Advertise on ITWeb         Sun, 21 Jan, 02:23:21 AM

US Senate panel to discuss Bitcoin with regulators

Concerns about a bubble in the Bitcoin market have heightened.

Concerns about a bubble in the Bitcoin market have heightened.

The US Senate's financial services panel will hold a hearing next month with the country's top markets regulators to discuss Bitcoin amid rising concerns over the risks crypto-currencies pose to the financial system, a person with direct knowledge of the matter told Reuters.

The Senate Banking Committee will take testimony from Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo and Securities and Exchange Commission (SEC) chairman Jay Clayton in early February, the source said.

Concerns about a bubble in the Bitcoin market have heightened since the currency soared to record highs of more than $19 000 in December, only to then slump more than 28%. On Wednesday, Bitcoin was trading at $14 676, according to prices compiled by the Luxembourg-based Bitstamp exchange.

The emerging asset class has created a divide among Wall Street and central bankers alike over whether it is a legitimate and sustainable financial instrument.

The SEC and the CFTC have been increasing their jurisdiction over the crypto-currency market, which has no overriding US federal regulator. Both watchdogs have warned of the considerable risks posed by the volatile currency and have said they may not be able to protect investors from crypto-currency fraudsters.

The CFTC last month allowed CME Group and CBOE Global Markets to list Bitcoin futures contracts, but this month said it would review its process for listing digital currency futures following criticism from market participants.

Five fund managers this week shelved plans to launch exchange-traded funds based on Bitcoin futures, citing concerns from the SEC regarding the liquidity of the underlying futures market.

Related stories:

Copyright 2018 Reuters Limited. All rights reserved. Republication and redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.


Our comments policy does not allow anonymous postings. Read the policy here




 

 

 

Sponsors Message