James Delahunty
7 May 2013 13:18
A board member of the U.S. top derivatives regulator has hinted that BitCoin could be subject to the same rules it enforces on derivatives trading.
Bart Chilton of the Commodity Futures Trading Commission (CFTC) said he requested staff explore whether consumers need more protection against BitCoin mishaps, following a dramatic and sudden collapse in BitCoin value last month.
"Here's what I know for sure: we could regulate it if we wanted. That is very clear," he told Reuters.
The CFTC's role has been expanded since the 2007-2009 financial crisis, which has been linked by many experts to the lack of adequate regulation on complex derivatives. Since there are no physical "BitCoins", Chilton argues that people investing in the currency are not participating in the cash markets, and are then in the remit of the CFTC's regulatory mandate.
"There is potentially a federal role here, and we have to make sure that we're on guard that whatever is traded is appropriately regulated," Chilton said.
On April 10, the value of a BitCoin plunged from $260 to $130.
While Chilton appears to feel confident in his assessment of the BitCoin trade and the possible role of the CFTC enforcing regulations on it, any such regulations would depend on the support of others on the board, and a green light from legal, and other, experts.