Coin Center’s Executive Director Jerry Brito (on right) was among the nine participants who addressed the New Jersey Legislature’s Financial Institutions on questions related to Bitcoin. In the end, the Bitcoin lobbyist unquestionably made some progress when it came to informing lawmakers about the cryptocurrency and its wider applications in the world.
The aforesaid hearing was held to ensure the protection of Bitcoin consumers, especially in times when the market has just suffered a price crash and a few highly publicized hacking incidents. Legislators, during the entire Q&A round, were more focused on the risks and volatility of Bitcoin, ignoring other pending topics related to drugs, money laundering and terrorism.
Brito took this opportunity to describe Bitcoin in a detailed manner, leaving no stone un-turned when trying to get Bitcoin into legislators’ good books. For instance, he carefully constructed his response to questions on Bitcoin’s volatility, blaming it on the low liquidity of the market. He further expressed his and others’ concerns about the lack of proper hedging instruments, and a central regulator to maintain stability.
However, in the same statement, he cleared the air and repeated that it is unlikely for Bitcoin to be as stable as a normal fiat currency, but it still might attain price movements like that of Gold.
On Bitcoin Price Manipulation
One of the legislators took some time before interrupting Brito with another question: “What caused the spike?,” he asked. “What caused the steady decline over the past year? And were consumers — is ‘screwed’ an appropriate word?”
Brito, in his response, acknowledged the era when Bitcoin was hyped just like those Dotcom companies and domain names during the early days of internet. However, he also described the average Bitcoin consumer as “sophisticated,” unlike a typical stock trader who will cry the moment when market falls. He highlighted the need of “good disclosures” so that consumers could have a proper idea about a trade before entering it.
“Finally, I would say that you can use bitcoin without being exposed to the volatility,” he concluded.
What’s Next in New Jersey Bitcoin Regulation?
It is quite evident that New Jersey bitcoin legislation is open for a constructive and driven-worthy debate. Such meetings we are hopeful will continue over time, and in best case, we might even see a Bitcoin-Friendly environment in the respective jurisdiction.
Image Credits: NJ Legislator Office and Twitter.