US regulators are trying to figure out what to do with cryptocurrency
Both chairman of the Securities and Exchange Commission (SEC) and chairman Christopher Giancarlo of the Commodity Futures Trading Commission (CFTC) will warn Congress tomorrow about how risky cryptocurrencies are for investors and the financial system as a whole. According to prepared testimony published today, they will advocate for reviewing the smattering of rules guiding cryptocurrency exchanges, and potentially replacing them with federal regulation. Ultimately, they want to safeguard everyone without stifling innovation. "A key issue before market regulators is whether our historical approach to the regulation of currency transactions is appropriate for the cryptocurrency markets. Check-cashing and money-transmission services that operate in the U.S. are primarily regulated by states. Many of the internet-based cryptocurrency-trading platforms have registered as payment services and are not subject to direct oversight by the SEC or the CFTC. We would support policy effor...