Former US Trading Commissioner Calls for Crypto Regulationbr>
A former US Trading Commissioner and author of a book on scams has claimed bitcoin’s single-coin price volatility means it needs to be regulated.
Writing on CNBC, Bart Chilton said that bitcoin has “a big blind spot” with its current lack of regulatory oversight. He posited that the recent crackdown by the Chinese government is a message to investors that regulation needs to be implemented.
Chilton wrote the book Ponzimonium: How Scam Artists Are Ripping Off America, and claimed that most investors should be thinking about the need for regulation in light of recent developments. “It’s hard to imagine that even the most ardent bitcoin or digital currency enthusiast isn’t doing a bit of reassessment in light of events in recent days,” he said. “Prices have been on a roller coaster that doesn’t appear to have an end … at least a good one. There’s still hope, however, that digital currency’s future can be bright if bitcoin’s big blind spot is addressed.
Chilton claimed if he was a regulator, he would be looking into the reasons behind the severe volatility of recent weeks to see if there was market manipulation. Chilton cited the price plunge, and noted that there was “no rational reason” why bitcoin prices suddenly jumped back to the $3,800 level immediately after they plunged from near $4,000 to below $3,000. “There’s no rational reason for such moves other than some are efforting (successfully, to date) to buoy prices and calm otherwise edgy and excitable bitcoin investors,” he said.
Without regulation, Chilton said, “There’s a mounting risk that more and more governments will simply ban—or over-regulate—bitcoin and other digital currencies.”