Billionaire venture capitalist Chamath Palihapitiya says leading digital asset Bitcoin (BTC) should be regulated like a security.
In a new interview on the All-In Podcast, Palihapitiya says regulatory agencies and lawmakers should treat the top crypto asset like a security even though it may not necessarily be one.
“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.”
According to the billionaire, another problem the crypto industry has is unrealistic yield expectations in decentralized finance (DeFi) protocols.
“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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Source: https://dailyhodl.com/2022/07/02/billionaire-chamath-palihapitiya-says-bitcoin-has-to-be-regulated-like-a-security-heres-why/