The Senate is looking to protect everyone and regulate Crypto

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**If a group of bipartisan senators gets their way, the Commodity Futures Trading Commission (CFTC) may soon be the regulatory body tasked with overseeing bitcoin and ether. **

  • “Digital assets and blockchain technology have already, and will continue, to change the way global markets function,” Sen. Boozman said in a statement. “Yet, this fast-growing industry is currently governed largely by a patchwork of regulations at the state level.”*

Andy

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Interesting the proposed law in essence moves to change the functioning to a clearance house. Usually that is what is entailed. No clue how that will transpire. No clue how that is not the lawmakers’ intent.

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I wonder who gave the political donations which convinced the Senators to chose the CFTC over the SEC

Jeff

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Jeff,

It is not an either or. It is a decision to treat cryptos as a commodity which as I am saying often means a neutral clearinghouse for trades. The SEC still has its oversight but not over the clearinghouse if that gets created.

I do not know at all that there will be a clearinghouse.

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Kind-of makes sense from a tax sense. Crypto is not money, it is a commodity people can buy, sell, trade (same as pork bellies, various metals, etc). So, they take it away from money managers and give to commodities traders to manage. Converting crypto into US $ (or any currency) is a taxable event (surprise !!), so know (document !!) your cost basis to declare taxable profit/loss.

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That is not taking it away from the money managers which usually refers to all sorts of financial sorts. Including MMs or market makers. But it would be a different set of MMs than the financial guys.

Not sure if there were a clearinghouse where it would be but would expect Chicago.

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I haven’t listened to any of these yet but I saw this on Saul’s board and supposedly it gives you more information on Bitcoin.

Might be interesting.

Andy

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