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Let's Clement asked Berkshire's Charlie Munger yesterday about the controversial virtual currency bit pointless.
I just had to get your thoughts.
On bitcoin this this this digital currency that's out there that people say oh it might be the next big thing what do you think.
I think it's throughout poison.
-- -- -- -- -- -- Get well that's what is that's -- no one regulator is taking notice and is proposing regulation.
Of bitcoin Bart Chilton is a commissioner at the commodities.
Pretty commission easily -- it is good to see you it's been awhile.
I'm going to be with him -- -- you don't talk to me about the strategy here I know the bitcoin is on your radar but can you make the legal case.
-- -- C -- TC can govern.
Something that is a virtual global currency.
Right and for us you know it's really the derivative -- the bit coins.
The Treasury Department and the Federal Reserve would actually do that currency.
But there are people out there you know talking about trading the actual derivative were not the future of swapper an option.
And those are things that are squarely within our legal jurisdiction to do.
But the question is whether or not we want to do it and you know I'm sort of leaning in favor but -- I'm not there a 100% yes.
I mean -- this is a -- -- crypto currencies at the shadow currency that's out there.
People are using it -- to purchase real things it's it's not monopoly money.
So it's a serious thing and we shouldn't just sort up.
Blowing often say it's bizarre and it's a one off we need to take a serious look at it make a determination whether or not there's any federal interest here.
Well -- -- -- -- -- John -- from from eBay has talked about that point in and that may be integrated into PayPal I mean this is something has gotten the attention in the majors CEOs like count.
At the same time it has been compared to a derivative like -- gold.
-- -- can you make the case there that bitcoin can be under the jurisdiction of the CFTC which we should say has been increasing -- power Bart since Dodd-Frank.
Yeah -- absolutely we candidate it's a good point like like other.
This is something that we can.
Regulate and it.
Anything it has a derivative that the definition of a commodity in the -- Is very broad actually so we can do it the question is whether or not -- make sense that and my view is that look if people are really on the hook for these things if they are.
Out there and you've seen the extreme volatility with -- -- they went from 266.
Dollars are around mid April.
Down to 55.
Last I checked couple hours ago is about a 104 that's 41 coined a 104 US dollars so.
I mean this isn't just monopoly money it's not they're not just trading air and that's why I think it makes sense for us to give this a really good look seek.
And and maybe get into dirt -- into regulating it and what that would mean by the -- if we do regulate it.
It would mean that people would have to have certain margin when they placed -- of that on a futures options are swapped that they may have to have capital requirements.
That they may have to clear these things those are all good customer protection things some of these folks just don't want anything to better training bit -- don't want everything to do with government.
But by the same token there is a desire here to ensure that people are safe.
And when they start and -- by everything under the sun.
Automobiles you know just down the street from where you are you can get a Condo in -- the trump hotel it gets to be a pretty serious and significant matter.
No one bar and he looked music and I know you well and -- you sound very committed and very serious have you had conversations with your fellow commissioners.
And how likely Isis that you're gonna regulate this because it sounds to me from just just from knowing you for years -- There are serious and that this may be at this is it doesn't really happen your really are gonna go after -- Well I what I what I want them to know is weak at the first thing is we're -- Adam I mean we -- look at it this market head on.
To ensure that people are doing the right things -- well I don't want manipulation.
And that means we probably need to take a greater role I've had some conversations but in all fairness that they are juvenile conversations are in their infancy and we really need to talk with the lawyers and talk with some -- our surveillance staff.
To get a good take before we take an action and of course our commissioners five lasted takes three of us to do what he thinks so what we're a little bit aways from that but it's definitely on our radar and I think it's something that we should probably consider not just a little bit but considered a lot.
Okay -- Shelton CFTC commissioner Bart thank you very much cant wait for an update for you and those conversations with your follow.
A commissioners part thank you very much Goodwin with -- in -- that's.
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