CFTC Chair, Christopher Giancarlo announced on CNBC’s Fast Money that Bitcoin is a little bit of everything. Giancarlo stated: “Bitcoin and a lot of its other virtual currency counterparts really have elements of all of the different asset classes, whether they’re meeting payment, whether it’s a long-term asset,”
Further, Giancarlo said that since most of the current asset definitions come from the reform period of the 1930s, it’s very difficult to apply to a currency based on technology that’s only 10 years old.
The main takeaway from the interview is that the regulation debate will not be resolved in the near future. Giancarlo stated that Bitcoin, and its underlying blockchain technology come hand in hand. Fighting against one while accepting the other will hamper the technological innovation of the other.
In short, regulating Bitcoin and cryptocurrency is an arduous process. The debate around how best to regulate the internet is still a contentious issue, decades after its advent. Bitcoin, and blockchain technology share this in that it’s groundbreaking technology, making it difficult for regulators and legislators to regulate, yet it is more difficult for these regulators due to it being an asset class as well as technology.