The US Senate hearing on Bitcoin causes debate - Technology
The US Senate hearing on Bitcoin causes debate

The US Senate hearing on Bitcoin causes debate

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Bitcoin-like digital coins were in focus on Tuesday during a hearing held by the US Senate on how this asset should be adjusted with high fluctuations and risks.

Christopher Giancarlo, the head of the Future Contracts Commission, and Jay Clayton, the Head of the Scholarship and Bond Committee, gave their testimonies to the Senate Banking Committee on the risks that virtual currencies bring to investors and the financial system.

This hearing comes at a tough time for bitcoin, which lost more than half its value only during January due to fears of stopping the mass from authorities and stopping the use of credit cards by some banks.

Senate Banking Committee Chairman Mike Crapo voiced concern over currency instability, investor protection, and cyberattack risks similar to the Japanese Coincheck Stock Market stashing $ 530m.

"From Coincheck's hacking to the concerns raised by authorities and market participants, there are no examples that increase investor fears," Republican lawmaker Giancarlo and Clayton said.

But Crapo said the technology behind them has a high positive potential and can increase investors' access to financial markets.

On the other hand Clayton and Giancarlo showed the efforts of their agencies to manage the market and set restrictions. Clayton said Congress should change some federal laws to fix this new asset, however, according to them the adjustment is not urgent yet.

Their comments weakened by Senator questions that did not hesitate to mention the negative news about the currency in the last days.

Giancarlo said he had begun efforts to create an innovation-focused innovation lab and futures contracts. But he said that as the currencies have a global character, the regulatory power of his institution is limited.

The most positive comment of the hearing was that of Giancarlo who said that the market is not only new but of an evolving and international character.

Regarding the negative impact that would trigger a system's "crash" on traditional economies, Clayton said it would be minimal because the market itself is small.

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