{"id":16256,"date":"2018-06-16T13:40:02","date_gmt":"2018-06-16T18:40:02","guid":{"rendered":"http:\/\/huewhite.com\/umb\/?p=16256"},"modified":"2018-06-16T13:40:02","modified_gmt":"2018-06-16T18:40:02","slug":"currency-always-has-costs-ctd-6","status":"publish","type":"post","link":"https:\/\/huewhite.com\/umb\/2018\/06\/16\/currency-always-has-costs-ctd-6\/","title":{"rendered":"Currency Always Has Costs, Ctd"},"content":{"rendered":"<p>There are costs and there are risks, and for Bitcoin and ether, the risks may have just gone up, as the SEC thinks they are not subject to standard regulation. <em><strong>WaPo<\/strong><\/em> <a href=\"https:\/\/www.washingtonpost.com\/news\/the-switch\/wp\/2018\/06\/14\/bitcoin-and-ether-shouldnt-be-regulated-like-stocks-and-bonds-a-top-sec-official-says\" target=\"_blank\" rel=\"noopener\">reports<\/a>:<\/p>\n<blockquote>\n<p data-elm-loc=\"1\">Two of the world&#8217;s biggest virtual currencies need not be regulated like stocks and bonds, a top official at the Securities and Exchange Commission said Thursday, putting to rest months of uncertainty about how the financial regulator views bitcoin and ether, the cryptocurrency behind Ethereum.<\/p>\n<p data-elm-loc=\"2\">Speaking at an industry conference in San Francisco, William Hinman, the SEC&#8217;s director of corporate finance, said the two top cryptocurrencies don&#8217;t meet the criteria for regulation that the agency typically applies to traditional securities.<\/p>\n<p data-elm-loc=\"3\">\u201cBased on my understanding of the present state of ether, the Ethereum network and its decentralized structure, current offers and sales of ether are not securities transactions,\u201d Hinman said.<\/p>\n<p data-elm-loc=\"4\">Hinman&#8217;s remarks suggest that, unlike companies, which\u00a0are required to\u00a0educate stock investors about\u00a0the health of their businesses, the developers behind bitcoin and ether face no such obligations. The basis for this\u00a0conclusion, Hinman said, lies in the fact that bitcoin and ether are developed diffusely, by many unaffiliated people, rather than by a single, centralized entity such as a corporation.<\/p>\n<\/blockquote>\n<p data-elm-loc=\"4\">I can understand the reasoning, but I wonder if lack of regulation will result in the growth of cryptocurrencies, or a drag on same. After all, your standard consumer doesn&#8217;t really want to take the time to understand the risks of using non-standard currencies, they just want it to work. The <a href=\"http:\/\/money.cnn.com\/2018\/06\/13\/investing\/bitcoin-cryptocurrency-hacks-security\/index.html\" target=\"_blank\" rel=\"noopener\">recent hack<\/a> of some Bitcoins in South Korea is certainly a confidence sapper as well. While the right wing has certainly been successful in equating regulation with <em>burden<\/em> and <em>barrier to profits<\/em>, the simple fact of the matter is that a well-considered regulation is more than worth the time that goes into designing it and putting it into effect.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are costs and there are risks, and for Bitcoin and ether, the risks may have just gone up, as the SEC thinks they are not subject to standard regulation. WaPo reports: Two of the world&#8217;s biggest virtual currencies need not be regulated like stocks and bonds, a top official \u2026 <a class=\"continue-reading-link\" href=\"https:\/\/huewhite.com\/umb\/2018\/06\/16\/currency-always-has-costs-ctd-6\/\"> Continue reading <span class=\"meta-nav\">&rarr; <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16256","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts\/16256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/comments?post=16256"}],"version-history":[{"count":2,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts\/16256\/revisions"}],"predecessor-version":[{"id":16258,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts\/16256\/revisions\/16258"}],"wp:attachment":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/media?parent=16256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/categories?post=16256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/tags?post=16256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}