Bitcoin, Crypto currency, Blockchain

Overstock Board member calls for U.S. regulatory clarity

a58e7b544440b2dc0eadf22ca55d92f7 - Overstock Board member calls for U.S. regulatory clarity

Jonathan Johnson, the former Chairman of Overstock, has touted the benefits of crypto-currencies, as well as your growing business segment in the case of Online retailers and called for a clear regulation in a speech to the Heritage Foundation, a conservative think-tank in Washington, D.C.

Overstock

“We recorded $68.000 up to $120,000 dollars in sales with crypto-currencies per week – people buy from bed sheets to toasters anything with Bitcoin, Ethereum and so on”

Overstock.com is one of the few listed companies that will be involved in the crypto wave. Your former Chairman is, despite this year’s market performance of crypto-bullish currencies on the technology.

The sales currently make up only about 0.2 percent of the total sales of the company, but he stressed that the number is growing, despite a decline in crypto-prices.

Equities and crypto-currency correlation

The performance of Overstock’s stock, as well as of the crypto markets appear to be correlated. Last autumn, the share price of Overstock rose with the Bitcoin bubble of about 30 US dollars on 1. October until the beginning of January to nearly 87 dollars. At the beginning of March, the share price stabilised at $ 60 USD, and has since fallen further.

The message that tZero, a subsidiary of Overstock, had received from the Securities and Exchange Commission, because of its 250 million US-Dollar. ICO a subpoena, in fact, the share price hard. The price is now approaching 40 $. Overstock also has a Blockchain-focused Venture capital Arm called the Medici Ventures.

Crypto is like a cash transaction

“We pay a processing fee for credit cards and deal with in our fraud Department for approximately 40 employees. These are the costs which are necessary for transactions with credit cards. If we take a crypto-currency, we have a very small transaction fee with Coinbase, much smaller than our credit card processing fee and we have no fraud prevention Department. It is like a cash transaction. This is a much cheaper way of doing business.“

The regulatory clarity in the U.S. is required

Johnson indicated that the regulatory uncertainty in the United States restricting the use and development of Blockchain-based technologies and capital-formation methods, such as, for example, ICOs. The confidence of the SEC on the Howey Test in deciding when a Token offer is a securities and no securities is, has created a lot of uncertainty in the room.

“Medici Ventures has not invested in a single. ICO, to a large extent because the regulation is blurred to you still very. We should not regulate this technology. If there are applications that need regulation, then maybe.“

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