Monday, May 6, 2013

BREAKING: CFTC Considering Bitcoin Regulations

Bitcoin “is for sure something we need to explore”, Bart Chilton, one of the five commissioners at the Commodity Futures Trading Commission (CFTC) told the Financial Times. A person familiar with the CFTC’s thinking said that the regulator is “seriously” examining the issue. FT goes on:
Said Mr Chilton: “It’s not monopoly money we’re talking about here – real people can have real risk in these instruments, and we need to ensure that we protect markets and consumers, even in what at first blush appear to be ‘out there’ transactions.” 
Said Mr Chilton, the commissioner: “In essence, we’re talking about a type of shadow currency, and there is more than a colourable argument to be made that derivative products relating to Bitcoin falls squarely in our jurisdiction.”
The regulators are circling, bitcoins have their attention. It probably won't be the CFTC, but it is quite instructive to know that even the US commodity futures regulator has Bitcoin on its radar screen.

The government is going to come down hard. They will stop at nothing to eliminate competition to central banks.


  1. “It’s not monopoly money we’re talking about here..."
    “In essence, we’re talking about a type of shadow currency..."

    As we have learned - to our great regret with Scotus and "Healthcare" (sic) - it is the language that rules the laws and the confiscation of Value is dependent on what the Law allows by linguistic device.

    If you consider my previous Posts on "Bitcoin", we are observing Digital Friedmanite Monetarism. The increase in the supply of Bitcoin is limited and linear. The rise and fall in Value is therefore what others perceive as its advantages or defects at that time.

    The State here is looking for a suitable Technical Language with which to ensnare any Value it (The Technocrats, for example) perceives.

    When the Commies took over in Russia, the Pre-Rev Ruble GAINED in value over the short term. Why? Because it became a store of Value in that it was no longer being printed. Of course, holders of the old money soon became Enemies of the State...

    So it might be with Bitcoin: "Thou Shalt Not Steal! - The government doesn't like competition."


  2. "The government is going to come down hard." is reading into this waaaay more than is there. Take off your tinfoil hat. The CFTC's job is the regulate derivatives markets. If bitcoin derivatives become "a thing", then it is their job to regulate. Not "come down hard". This has nothing to do with central banks.

  3. Chilton has been, to-date, a real disappointment on fighting silver and gold manipulation. At times, he talked a good talk and promised a good fight. But, nothing has come of it.

    With this, he reveals his true colors, as a statist tool.

    No wonder nothing has come of the CFTC's four year investigation into rigging of the silver market.

  4. This guy Chilton has spent his career as a political hack with a statist agenda. The only effect this blowhard will have on Bitoin is the Streisand effect.

  5. Thank god we have these guys to 'protect' us from these evil markets.