The US Securities and Exchange Commission (SEC) has issued a letter to two Washington DC firms seeking guidance on bitcoin exchange-traded funds (ETF) applications, of which a dozen are pending. In it, the regulator openly worries about cryptocurrency volatility and whether future potential listings have done enough to protect investors. The letter is widely believed to be a major blow in the quest for Wall Street’s mainstreaming of bitcoin.
We will learn a lot about the market with this gem.
There is two things going on, Crypto folks love the fiat; and this is completely unenforceable. let us take the later.
Let me be a vendor, say Bezo's, computer rental. I rent pace on my computer for customers to run bot code. Me, the computer vendor have no way to know that the bot is running a coin index, interacting with coin exchanges around the world using standard escrow routers. So, this is where regulations is going to get real confusing.
The monetary network is liquid, and utility. The regulators have to regulate the observables, queue sizes, and their difference across pit trades. The operational observables can be regulated, the bots can voluntarily agree, and the regulators get regulation bot.
The bots and pits can ignore government edict, the sandbox don't care. But the regulators have the observables, the shoe leather and the warrant. This is the approach and regulators have fun doing it.
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