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Regulators Uncertain About Virtual Currency Market Oversight

As exchange-traded funds (“ETFs”), other kinds of exchange-traded products, and bitcoin-related items grow in popularity, regulators are still uncertain about how to oversee the virtual currency market. The topic became a point of discussion on September 8 at the Securities and Exchange Commission-New York University Dialogue on Securities Market Regulation in Washington, D.C. During the discussion, Kathleen Moriarty of international law firm Arnold & Porter Kaye Scholer LLP said that the SEC has held off on its oversight because the virtual currency markets are still in their early stages and are not policed well. Moriarity remarked that from her viewpoint,. Read More.

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Governments Warming to Bitcoin

As the world’s leading virtual currency, the use of Bitcoin  is slowly becoming more mainstream within federal and state governments.  Both entities are accepting its usage through regulations associated with other legitimate world currencies and specific state laws legalizing virtual currencies. While Bitcoin gains acceptability with larger governments and is used more by private businesses, there will likely be increased pressure on local governments to accept other virtual currency for local transactions. Although widespread Bitcoin use could be years away, a complete understanding of virtual currency’s benefits and risks may help in proper planning and implementing usage guidelines. Such efforts. Read More.

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Bitcoin Triggers SEC Investor Alert

Protecting stockholders from the investment risks of Bitcoin and other virtual currencies, the U.S. Securities and Exchange Commission’s (“SEC”) Office of Investor Education and Advocacy has released Bitcoin and Other Virtual Currency-Related Investments. Since Bitcoin, as well as other virtual currencies, can be exchanged and used like real money for purchases, the SEC’s Investor Alert warns of the possibility of increased fraudulent activities and high-risk investments. Per the Investor Alert, risks include: Bitcoin investments not being insured from loss like other investments; Bitcoin’s exchange rates are generally unstable and could drop drastically; Federal, state or foreign governments may limit Bitcoin. Read More.

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