Bitcoin recovers from plunge to under US$6,000 - but US and German experts are calling for crackdown
The chairman of the US SEC said he may seek crypto legislation, while the head of the Bank for Int’l Settlements called on global heads to deal with the ‘disaster’ of bitcoin
The price of bitcoin fell as low as US$5,922 on Tuesday before clawing its way back up to US$7,076 in New York, according to Bloomberg composite pricing.
But while the cryptocurrency tried to find stability, it came under attack from US Securities and Exchange Commission Chairman Jay Clayton, who told the Senate Banking Committee that he may ask them to pass legislation to improve oversight of virtual currencies like bitcoin.
It was also slammed by the new head of the Bank for International Settlements, Agustin Carstens, who, in separate remarks, called on countries to crack down on what had become “a bubble, a Ponzi scheme and an environmental disaster.”
Authorities have a duty to educate and protect investors and consumers, and need to be prepared to act
Clayton, who testified alongside Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), said the agencies were coordinating with the Treasury Department and the Federal Reserve on the subject of cryptocurrencties.
But he added that lawmakers may have to clarify and enhance regulatory powers.
“We may be back with our friends from Treasury and the Fed to ask for additional legislation,” Clayton said when asked whether Congress needed to act on virtual currencies.
His comments are the strongest indication yet that US federal authorities are mulling new laws to scrutinise virtual currency trading and investing.