Yesterday, Brian Brooks, CEO of Bitfury and a former acting comptroller of the currency, joined CNBC’s “Squawk Box” to explore the possibility of regulation in the cryptocurrency market as well as the effect that such legislation may have on investors. During the course of the interview, Brooks expressed his belief that the difficulty the Federal Reserve is having in controlling inflation is detrimental to short-term bitcoin traders.
He stated:
“The more the market expects tough policy from the Fed, the more people think the Fed is going to keep an aggressive posture, and that would tend to harm Bitcoin.”
The Chief Executive Officer of Bitfury said that the United States Securities and Exchange Commission needs to clarify the uncertainty around cryptocurrencies. He said that the regulating body has recently filed lawsuits against a number of individuals without first informing them of the requirements. According to Brooks, who described the practice as “not a good thing,” a lack of clarity on cryptocurrencies from the US Securities and Exchange Commission would make many investors anxious about the ecosystem.
In his words:
“Firstly, regulation does not mean suing people. The approach of the SEC in the last couple of years has been to not tell anyone what the rules are in advance but to sue people after they launched a project, started a company, listed a token, and then caused people to infer what the rules were later.”
He added that That is not a good thing, and as a result, at some time in the future, Congress and the regulators will need to get serious about informing people of the “speed limit on the crypto highway”.
