FIRST AIRED: February 6, 2018

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00:00:00
>> When you have an unregulated exchange, the ability to manipulate prices goes up significantly.>> The top U.S. financial regulators on Tuesday told a Senate panel that they are scrutinizing cryptocurrencies such as Bitcoin for signs of fraud, and warned that the risk to investors is high.>> If you are going to give them money you'd better be prepared to lose it.
00:00:24
>> The heads of the Security Exchange Commission and the Commodity Futures Trading Commission told the Senate Financial Services Committee their agencies had formed a task force to better understand cryptocurrencies.>> Is Bitcoin, or are these as currently being traded, are they a commodity? Or are they a security?
00:00:42
Or are they both?>> What's so challenging about Bitcoin is it has characteristics of multiple different things.>> A commodity, a currency, and sometimes a roller coaster. Bitcoin prices on Tuesday swung from a three month low of around $5,900 to over $7,000. It has fallen about 70% from its peak of nearly $20,000 in December, and is down nearly 50% so far this year.
00:01:10
The ride undermining confidence for some investors, who last year enjoyed gains of more than 1,300%. The U.S. regulators stressed that cryptocurrencies are still evolving. And while that made them an attractive opportunity to many investors, it also came with inherent risks.>> When we see disruptive technologies come along, there will be winners.
00:01:33
But there will be many losers,that's the way it works. The regulators said they may ask Congress to pass new legislation granting greater oversight of cryptocurrencies.