CFTC Regulators Discuss Crypto Concerns, Memecoin Prices Rise Following Twitter Logo Change

[ad_1]

Yahoo Finance crypto reporter David Hollerith joins the live show with an update on cryptocurrency news, including comments from CFTC regulators and dogecoin price surge after Twitter reported. changed its logo to Shiba Inu.

Video transcript

SEANA SMITH: Bitcoin has surged in the last month, really year-to-date. In the past month alone, however, up more than 25%, the cryptocurrency appears to be regaining some of that momentum it lost last year. And as price action has resumed, so have discussions of crypto regulation. Our David Hollerith spent the day at a crypto conference where regulation was front and center. David, what have you learned about this and just the push here that we could potentially see from regulators?

DAVID HOLLERITH: Yeah, I mean, back to where you started, though, it’s a really interesting dichotomy between crypto pricing and regulation in the United States. Today at the Chainalysis Link conference, Chainalysis is a blockchain transaction analysis company. So they’re doing — they’re basically covering up crime in this area. They interact a lot with regulators. We had a regulator at the federal and state level. So Christy Goldsmith Romero, who is a commissioner for the CFTC, came in and spoke on stage today.

And actually, what she brought up is just the fact that the industry at this point is losing confidence. I mean, this is something we’ve been talking about for months since FTX. But she kind of pointed out that’s still the position. And the CFTC is somehow known to be seemingly friendlier than other US agencies towards crypto.

And she explained that it’s still like the lessons learned from FTX are fundamental things like putting internal controls in place in companies, making sure there are no conflicts of interest. She also pointed to the fact that they work with other US state and federal regulators and investigations. And she said with a bit of trepidation that we should probably expect more of those.

The story continues

SEANA SMITH: Yeah, and David, you mentioned that there’s been a loss of faith in crypto. And also, even with what just played out in the banking industry over the last few weeks with the collapse of Silvergate, you also had Signature Bank and the crypto tie-in. There was talk about it out there on the street. Were there any rumors or discussions about this at today’s conference?

DAVID HOLLERITH: Yeah, so Adrian Harris, who’s the superintendent of the New York Department of Financial Services, basically the regulator in New York who decided to see Signature, and she had actually spoken about the comments that were made about the shutdown whether or not the signature had something to do with their exposure to crypto. And she had kind of pointed out that even though Signature is known as a crypto-friendly bank, it also had quite a diverse deposit. And she said it was ultimately a question of liquidity, which was the problem.

And she said the idea that it was some sort of target for crypto, she called it stupid and also ridiculous. So that’s all we have of that. We’ve heard the department say the same, but yes, so.

SEANA SMITH: Yeah, and David, when we talk about some of the movement that we’ve seen this week, very quickly, some of the activity and some of these crypto meme games – and I’m talking about Dogecoin because we have Elon Musk turning the icon here into Doge Doge, and that got some investors excited. And we saw that Dogecoin was one of the most popular tickers on Yahoo Finance earlier this week. It’s been some time since then. What do you think of this and perhaps the interest we’ve seen in this piece this week?

DAVID HOLLERITH: Yeah, I mean, it’s hard to explain Dogecoin in that sense, for example, if you’re looking for fundamental analysis, like a stock…

SEANA SMITH: Not much.

DAVID HOLLERITH: –like, you’re not going to find anything like that. But the industry – like the crypto analysts I’ve talked to, actually they say it’s an honest coin, which I guess is the translation that unlike these other things doesn’t does not necessarily have value transparently. But there’s also no weird things that investors can’t see about it, it’s kind of how they put it. But that doesn’t mean it’s in any way safe. All cryptocurrencies are difficult to understand when it comes to investing. But as far as meme pieces go, it’s clearly one of the biggest, and a lot of people say it’s the most honest, so.

SEANA SMITH: Yeah, well, I don’t know. Elon Musk is driving much of the action there in the interests of Dogecoin. David Hollerith, great to have you on set.

DAVID HOLLERITH: Yes.

[ad_2]