Billionaire venture capitalist Chamath Palihapitiya says leading digital asset Bitcoin (BTC) should be regulated as a security.
In a new interview on the All-In Podcast, Palihapitiya said regulatory agencies and lawmakers should treat the primary crypto asset as a security, even if it isn’t necessarily one.
“I tend to think that at this point Bitcoin probably needs to be regulated as a security, even though it isn’t and is more of a commodity than due to volume. and the size of the market…
If you are a market player trying to trade very sophisticated derivatives of any kind, for example in credit markets, we have to go there and we create these things called ISDA [International Swaps and Derivatives Associations]…
It’s basically a kind of account that allows us to go and take risks in some of these very esoteric markets, but the underlying principle is a common set of parameters, a clearing house [and] the ability to monitor risks. None of those things exist here, and I think that’s what people need to figure out for now.
According to the billionaire, another issue in the crypto industry is unrealistic return expectations in decentralized finance (DeFi) protocols.
“All that shadowy activity…it just sounded too good to be true. When you heard [about how] this DeFi protocol will get you 24%… never really made sense, but none of us really questioned it.
Bitcoin is changing hands at $19,198 at the time of writing, down 5.56% on the day.
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