CFTC, SEC Chairs Readying to Discuss Virtual Currencies Before Congressional Committee

Chairs will discuss cryptos in the wake of Bitcoin falling below $6,000 the evening before.

Two key regulators in the cryptocurrency space are preparing to speak before members of the U.S. Congress today. The heads are readying for the talks as Bitcoin fell below $6,000 Monday night, New York time.

The chairs of the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission will go before the Senate Committee on Banking, Housing and Urban Affairs. CFTC chair Christopher Giancario and SEC chair Jay Clayton will be in the hot seats.

The topic is “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission.”

What to expect

While no specific agenda items have been released, this hearing will likely take the form of a free-for-all in which these officials will be peppered with all kinds of questions from the members of the committee.

A likely question will be about Bitcoin and the price volatility that has been at the forefront of the news about the space since the beginning of the year. On Monday, Bitcoin’s price dipped to  $6,103. The last time the price was that low was in November. Also, the move lower is significantly off from the $17,027 the crypto enjoyed a month ago on Jan. 6.

Another subject that will likely be broached relates to regulations. The SEC has addressed bad actors in the space on an individual basis, but no set policies have been released.

Busy CFTC

For its part, the CFTC has taken actions against several companies, too. In January alone, it announced it was going after at least two bad actors.

It slapped a company called My Big Coin with commodity fraud and misappropriation charges. We told you about how the company was purporting that it was trading on multiple exchanges, was backed by gold and had a partnership with MasterCard. All of this was found to be untrue by the CFTC.

Last month, the CFTC also sued Cabbage Tech Corp. for charging people for crypto advice, but never delivering anything. In a ruse designed to capitalize on the price rises in the crypto space, Cabbage Tech Corp. offered all kinds of advice to those willing to part with their Bitcoin and Litecoin for it.

The hearing begins at 10 a.m., New York time, and will be webcast live.

We will report details of the hearing once it is concluded.