Bitcoin Has a Problem in the US Says Prominent Hedge Fund Manager Paul Tudor Jones Source: Pixabay
American billionaire hedge fund manager Paul Tudor Jones said bitcoin has a “real problem” due to unfriendly regulation in the US, in a recent interview with CNBC.
“Bitcoin has a real problem because in the United States, you have an entire regulatory apparatus against it,” Jones said.
Appearing on CNBC’s Squawk Box on Monday, the infamous trader spoke about his investments in bitcoin and said he planned to stick with it.
“I’m sticking with it,” Jones said. “I’m going to always stick with it as just a small diversification of my portfolio.”
At its height in November 2021, bitcoin was valued at close to $68,000 and has since fallen close to $27,000 as of Monday evening.
US regulators’ views on bitcoin
Securities and Exchange Commission Chair Gary Gensler has outwardly said that bitcoin is not a security, and in fact, everything but the longstanding crypto would be a security, he said in an interview with Intelligencer in February.
Gensler has also said most cryptocurrencies are securities and therefore regulated by the SEC.
The distinction is important since the CFTC is tasked with overseeing futures, options and swaps, while the SEC is set up to regulate securities such as stocks.
Meanwhile, Commodity Futures Trading Commission Chair Rostin Behnam has asserted that bitcoin is a commodity, so it would fall under his jurisdiction.
US lawmakers are working on bills to make a clearer divide between what cryptocurrencies would be securities or commodities.
Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y. have plans this spring to introduce a revised version, first introduced last June, of the Responsible Innovation Act, according to Blockworks.
In it, the pair delegated oversight of the most popular cryptocurrencies to the CFTC while addressing stablecoins and taxes.
The lawmakers said the newer version will be more detailed when defining tokens and clarify definitions.