Billionaire venture capitalist Chamath Palihapitiya says leading digital asset Bitcoin (BTC) should be regulated like a security.
“I tend to think at this point Bitcoin probably has to be regulated like a security even if it is not and it’s more of a commodity only because of the volume and sheer size of both the market…
If you’re a market participant trying to trade very sophisticated derivatives of any kind, for example in the credit markets, we have to go and we create these things called ISDAs [International Swaps and Derivatives Associations]…
It’s basically a kind of account that allows us to go and take risks in some of these very esoteric markets, but the underlying principle around that is a common set of parameters, a clearing house [and] the ability to monitor risk. None of those things exist here, and I think that’s what folks have to solve for now.”
“All these shadow activities… it just seemed too good to be true. When you would hear [about how] this DeFi protocol will yield you 24%… never made sense really but then none of us really questioned it.”
Bitcoin is changing hands at $19,198 at time of writing, down 5.56% on the day.
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