Billionaire venture capitalist Chamath Palihapitiya says the leading digital asset Bitcoin (BTC) how a security should be regulated.
In a new interview on the All-In Podcast, Palihapitiya says regulators and lawmakers should treat the top crypto asset like a security, although it doesn’t necessarily have to be one.
“I’m inclined to think at this point that bitcoin probably needs to be regulated like a security, even if it isn’t, and is more of a commodity just because of the volume and sheer size of both the market…
If you are a market participant trying to trade very sophisticated derivatives of any kind, for example in the credit markets, we need to go and create these things called ISDAs [International Swaps and Derivatives Associations]…
It’s basically an account of sorts that allows us to take risks in some of these very esoteric markets, but the underlying principle behind it is a common set of parameters, a clearing house [and] the ability to monitor risks. None of those things exist here and I think people need to resolve that now.”
Another problem facing the crypto industry, according to the billionaire, is unrealistic earnings expectations in decentralized financial protocols (DeFi).
“All this shadow activity… it just seemed too good to be true. If you would listen [about how] This DeFi protocol will give you 24%… never really made sense, but none of us really questioned it.”
Bitcoin is changing hands at $19,198 as of this writing, down 5.56% on the day.
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Source: Crypto News Deutsch