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Billionaire venture capitalist Chamath Palihapitiya says leading digital asset Bitcoin (BTC) should be regulated like a security.<\/p>\n
In a new interview<\/a> on the All-In Podcast, Palihapitiya says regulatory agencies and lawmakers should treat the top crypto asset like a security even though it may not necessarily be one.<\/p>\n \u201cI tend to think at this point Bitcoin probably has to be regulated like a security even if it is not and it\u2019s more of a commodity only because of the volume and sheer size of both the market\u2026 <\/em><\/p>\n If you\u2019re a market participant trying to trade very sophisticated derivatives of any kind, for example in the credit markets, we have to go and we create these things called ISDAs [International Swaps and Derivatives Associations]\u2026 <\/em><\/p>\n It\u2019s basically a kind of account that allows us to go and take risks in some of these very esoteric markets, but the underlying principle around that is a common set of parameters, a clearing house [and] the ability to monitor risk. None of those things exist here, and I think that\u2019s what folks have to solve for now.\u201d <\/em><\/p>\n According to the billionaire, another problem the crypto industry has is unrealistic yield expectations in decentralized finance (DeFi) protocols.<\/p>\n \u201cAll these shadow activities\u2026 it just seemed too good to be true. When you would hear [about how] this DeFi protocol will yield you 24%\u2026 never made sense really but then none of us really questioned it.\u201d<\/em><\/p>\n Bitcoin<\/a> is changing hands at $19,198 at time of writing, down 5.56% on the day.<\/p>\n