MicroStrategy CEO Michael sailor He threw an altcoin under the bus by asking regulators to play their role in tackling risky crypto industry practices.
Talk to the founder of the technical analysis platform Northman TraderSailor told Sven Henrich that a “parade of horror” is squeezing Bitcoin and regulators must act accordingly.
“A parade of horror is dragging Bitcoin down.”
In explaining the “parade of horror” Sailor I have listed three factors that adversely affect the price of Bitcoin.
The first is the widespread use of costume transactions in cryptographic spaces. Unlike stocks, there are no specific restrictions dealing with the disguise transactions of digital assets.
Wash trade Is a form of market manipulation that buys and sells assets at the same time. This practice can create a false image of what is happening in the market, such as artificial mass outbreaks.
This leads to the following factors: Sailor said it was the impact of unregulated exchanges and the market volatility that exchanges bring. Further expanding, the MicroStrategy boss talked about conflicts of interest on exchanges that act as both market makers and token holders in relation to wash trading and trading at high leverage.
“With 20 times the leverage of Apple stock without wash trading rules, Apple would be a much more volatile asset, as would Nasdaq.”
Finally, Sailor turned to altcoin and stated that Bitcoin is the only product because there is no issuer. He added that the other 19,000 ciphers are unregistered securities. The result is hundreds of billions of “cloud” transactions without fair disclosure “mutually secured” with Bitcoin.
“You have a $ 400 billion cloud of opaque unregistered securities transactions without complete and fair disclosure, all of which are mutually secured with Bitcoin.”
Divided into regulatory treatment of cryptography on cards
On May 18, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), told the House Expenditure Commission that Bitcoin was a “probably” commodity.
Currently, in the United States, crypto assets are under the jurisdiction of the SEC and are treated under applicable securities law.
Talking to CNBC on May 16th, Chairman of the Commodity Futures Trading Commission (CFTC) Rostin Behnam He said it makes sense to look at all cryptocurrencies, classify each as a commodity or securities, and specify the appropriate institution accordingly.
“In this area, it makes sense that commodities are regulated by the Commodity Futures Trading Commission and securities are regulated by the SEC.”
Behnam said Bitcoin and Ether fit the definition of commodities in his opinion. However, there are “many” other tokens in that category.
