Colorado house representative Jared Polis brought to the notice of the US House ethics committee that currently; there are no disclosure norms when it comes to Bitcoin holdings. This is the reason why many of the high-profile investors who are actually commenting negatively on Bitcoins might actually have invested in Bitcoins. This creates a divergence problem is the investors might be driving down Bitcoins are so that they are able to invest more in Bitcoins. This is the reason why it is necessary to create proper guidelines when it comes to Bitcoin holding disclosures.
Currently, when it comes to equities or any other type of asset class, it is compulsory for the investors to disclose their holdings or extent of their holdings whenever they are commenting on the asset. However, when it comes to Bitcoin there is no such disclosure or there is no such guideline which the investors have to follow. Thus, it is very easy for the high-profile investors to actually misguide the retail investors by presenting a negative view of the cryptocurrency asset. This is exactly what is worrying Jared Polis.
He further added that if the investor is holding commodities or equities above $ 1000, he has to disclose the holding whenever he’s commenting on the price. Same should be the case with cryptocurrency assets as well.
Financial disclosures:
With the help of financial disclosures, the retail investors would be able to take a better call as to whose advice they should heed and whose advice they should avoid. This is the reason why many of the representatives think that proper disclosure would actually help the retail investors. It would help the retail investors decide for themselves whether the opinion should be taken with a grain of salt or whether the opinion of certain financial investors should be trusted completely.
Many of the institutional investors are also looking to invest in Bitcoins these days. Therefore, their public opinion might be different and the investing call which they are taking might be different. This is the reason why it is necessary for the cryptocurrency investors to actually disclose whether they are holding Bitcoin and other cryptocurrencies are not whenever they are commenting on the same. This would create more transparency as well as credibility for the retail investors.
This would also ensure that most of the bigger investors are accountable when it comes to disclosing their holdings and stating their opinion on Bitcoin or any other type of cryptocurrency. source: Bitcoin.com
Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.
