Strong, clear words were uttered in defense of the Bitcoin at the two-hour hearing of the US Senate Banking Committee concerning potential regulations for the cryptocurrency market, its perceived volatility, and initial coin offerings.
Arkansas Senator Tom Cotton raised the question on the value of the technology underlying cryptocurrencies. To this, Commodity Futures Trading Commission chairman J. Christopher Giancarlo replied, “It’s important to remember that if there were no Bitcoin, there would be no distributed ledger technology.”
He furthered that both are actually linked, and that there are “enormous prospects” to be considered regarding the variety of uses for the technology. Stopping short of diving into a full-blown rave, however, Giancarlo switched up to a more sober ton, staying that he certainly was “no pie-in-the-sky dreamer.”
If only for the potential, though, he strongly believed in the technology’s potential to “enhance economic efficiency, mitigate centralized systemic risk, defend against fraudulent activity and improve data quality and governance.” Furthermore, “[W]hen tied to virtual currencies, this technology aims to serve as a new store of value, facilitate secure payments, enable asset transfers, and power new applications,” he said.
Meanwhile, SEC chairman Jay Clayton chimed in on the conversation, also responding to Cotton’s question, pointing at how the technology could be potentially used for record-keeping and data verification. “I hope people pursue it,” he said.