2013-05-06 Financial Times: US regulators eye Bitcoin supervision

[jgarzik]

FT: US regulators eye Bitcoin supervision
http://www.ft.com/intl/cms/s/0/b810157c-b651-11e2-93ba-00144feabdc0.html#axzz2SXW9UnLr

Senior officials at a top US financial regulator are discussing whether Bitcoin, the controversial cyber-currency, might fall under their regulatory remit.

Bitcoin “is for sure something we need to explore”, Bart Chilton, one of the five commissioners at the Commodity Futures Trading Commission (CFTC) told the Financial Times. A person familiar with the CFTC’s thinking said that the regulator is “seriously” examining the issue.

Said Mr Chilton: “It’s not monopoly money we’re talking about here – real people can have real risk in these instruments, and we need to ensure that we protect markets and consumers, even in what at first blush appear to be ‘out there’ transactions.”

[...]

Paywall note: FT permits a few free articles per month, with registration.

[w00t]

Or you can do it like this:
http://web.archive.org/liveweb/http://www.ft.com/cms/s/0/b810157c-b651-11e2-93ba-00144feabdc0.html

Make sure to disable JavaScript!

Thanks to OP!

[SAQ]

I'm not sure whether to consider this good or bad.

He says it is  not monopoly money, so acknowledges its validity and in a way legitimises it, so there is no longer a threat of it being banned.

[Haole]

"...we need to ensure that we protect markets and consumers..." - Bart Chilton

The last thing they're concerned about is protecting markets and consumers, take the gold and silver futures markets for example.

Question is, is it about time to bail on BTC while the getting is good?

[melvster]

"...we need to ensure that we protect markets and consumers..." - Bart Chilton

The last thing they're concerned about is protecting markets and consumers, take the gold and silver futures markets for example.

Question is, is it about time to bail on BTC while the getting is good?

BTC is still 0.01% the size of gold.

I think he said what he had to say.  Not a big deal, I think. 

There's a *slight* argument to say BTC is a little US centric for a world currency.

If the US drops the ball on this one, europe or asia will pick it up.

[molecular]

these fuckers (sorry) should take the proof they have already been given about manipulation of the silver market and start to pull through on their job instead of opening new barrels.

jeeesssh!

[Mageant]

I'm wondering they can do actually.

To me it seems the only thing they could get hold of are the exchanges.

Going after each individual Bitcoin user seems unrealistic.

[kjlimo]

I agree.  I think the exchanges are bitcoins choke point for now.  Shutting them down won't stop bitcoin, but slow it.

As well as possibly confiscate a lot of people's money/bitcoin.

As far as future/derivatives, I assume there are still places to buy/sell these instruments based on bitcoin.

I haven't needed them, but after bitcoinica's fall, I assume someone will pick it back up.

[zakalwe]

He just wants to buy cheap bitcoins

[solex]

Senior officials at a top US financial regulator are discussing whether Bitcoin, the controversial cyber-currency, might fall under their regulatory remit.

Bitcoin “is for sure something we need to explore”, Bart Chilton, one of the five commissioners at the Commodity Futures Trading Commission (CFTC) told the Financial Times. A person familiar with the CFTC’s thinking said that the regulator is “seriously” examining the issue.

Said Mr Chilton: “It’s not monopoly money we’re talking about here – real people can have real risk in these instruments, and we need to ensure that we protect markets and consumers, even in what at first blush appear to be ‘out there’ transactions.”

[...]

This is what is so sickening. They really mean "protect the TBTF banks and the banksters inside them"

How much protection did the investors in MF Global get?  How much protection did Corzine get?

Expect regulators with this track record to be unsatisfied until Bitcoin is unusable.

[lettucebee]

Bart Chilton will protect the big money institutions as much as he can.  Just look how he did nothing about the BLATANT illegal manipulation of the silver market.

Given the USgov can track every communication we make, everywhere we go and everyone we associate with, they can hound people as much as most people will be able to stand.  Welcome to the surveillance, computerized, automated police state.

Shutting down exchanges will be just the start.

[n8rwJeTt8TrrLKPa55eU]

Related:

Bitcoin Report Volume 47 (CFTC FUD)
http://www.youtube.com/watch?v=nz_1JlykBf0

[fancy_pants]

As citizens,  we need to stay extremely vigilant in making public how much taxpayer money is spent on regulating bitcoin.  Anyone care to estimate how much in legal fees were spent to send out the FinCen position paper?

[solex]

As citizens,  we need to stay extremely vigilant in making public how much taxpayer money is spent on regulating bitcoin.  Anyone care to estimate how much in legal fees were spent to send out the FinCen position paper?

According to Krugman's arguments, all taxpayer money spent on legal fees is an economic stimulus! Much more effective for the economy getting QE into the hands of the professional class directly rather than indirectly via the primary dealers.