Billionaire Chamath Palihapitiya Says Bitcoin Has To Be Regulated Like a Security Heres Why

Billionaire venture capitalist Chamath Palihapitiya says Bitcoin (BTC), a major digital asset, should be regulated like security.

New interview In an all-in-podcast, Palihapitiya states that regulators and lawmakers need to treat top crypto assets like securities, if not necessarily one.

“At this point, we tend to think that Bitcoin probably has to be regulated like security. If not, it’s a commodity just because of the volume and size of both markets …

For market participants looking to trade all sorts of highly sophisticated derivatives, for example the credit market, we have to go and create these things called ISDA. [International Swaps and Derivatives Associations]

This is basically a kind of account that allows you to go to some of these very esoteric markets and take risks, but the basic principle around it is a set of common parameters, clearing. It’s a house [and] Ability to monitor risk. None of them exist here, and I think that’s what people have to solve for now. ”

Another problem facing the crypto industry, according to billionaires, is the expectation of unrealistic yields on decentralized finance (DeFi) protocols.

“All these shadow activities … it looked too good to be true. When you would hear [about how] This DeFi protocol brings 24% … it didn’t really make sense, but none of us really questioned it. “

Bitcoin At the time of writing, it was $ 19,198, down 5.56% on the day.

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Featured images: Shutterstock / Dotted Yeti / Chuenmanuse