It seems everyone on Wall Street has an opinion about bitcoin and related investments such as the Bitcoin Investment Trust GBTC. In December, that conversation has shifted from investors and money managers to regulators and lawmakers, who are now weighing in the cryptocurrency.
Here’s a look at some of what they've had to say.
Joseph Borg, president of the North American Securities Administrators Association: “This is not something a guy who's making $100,000 a year, who's got a mortgage and two kids in college ought to be invested in,” Borg said on CNBC. “You're on this mania curve.”
Andrew Bailey, chief executive of the Financial Conduct Authority: “If you want to invest in bitcoin, be prepared to lose all your money,” Bailey told the BBC. “We know relatively little about what informs the price of bitcoin.”
Janet Yellen, chair of the U.S. Federal Reserve: “It is not a stable source of value, and it doesn't constitute legal tender,” Yellen said at a press conference. She added that bitcoin is a “highly speculative asset.”
Securities and Exchange Commission Chairman Jay Clayton: "A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that ... there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation," Clayton said in a statement. “If an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost.”
William Galvin, Massachusetts Secretary of the Commonwealth: “Bitcoin is just the latest in a history of speculative bubbles that most often burst, leaving the average investors with a worthless product,” Galvin said in a statement. “Going back to the 1600s with tulip mania to the present bitcoin craze, chasing the next best thing will, more often than not, end in disaster for the average investor.”
Outgoing Federal Reserve Chair Janet Yellen. Photo by Dustin Blitchok.
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