20th Parliamentary Intelligence-Security Forum – Digital Assets: Cryptocurrencies, Stablecoins and CBDCs
Former CFTC Commissioner Brian Quintenz provided a brief overview of cryptocurrency and focused on how U.S. and other regulators are looking at this new technology. Specifically, Mr. Quintenz said he admires cryptocurrencies as they cleverly avoid the double spending problem. In the past, regulators and companies have struggled to keep a digital item safe from pirating. Through its first 13 years, Bitcoin has really seen no hacks, just minor tampering. The Bitcoin blockchain even holds a value of around $1.3 trillion.
Commissioner Quintenz offered a rundown of the current regulatory system. After citing such organizations as the SEC, CFTC, FDIC, and others, he addressed the question of whether or not cryptocurrencies are a pure commodity/should be managed as such. Because each crypto differs in one way or another, which evokes the SEC’s jurisdiction? Which will not? Mr. Quintenz pointed out that there are many negative consequences that may arise if regulation is too stringent. He also noted that it is short-sighted to fit cryptos into a current model, where they are regulated as financial instruments.
Commissioner Quintenz also addressed the logistics of finding illicit financers, and the idea that crypto can be used as a currency. Regarding the first point, Mr. Quintenz discussed certain advantages to law enforcement when criminals use crypto in ransomware incidents, as their wallets and timestamps are known to all, and can further be tracked and investigated in trials. He also cited that less than 1% of bitcoin payments are payments for ransomware.
