>> 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.
>> 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?
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.
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.
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.