SecondMarket To Launch The First US Bitcoin Exchange
One Unit of Bitcoin Worth $50,000? See Why Somes Experts Say Yes
While the world was preoccupied with the Mt. Gox collapse on Monday night, it was what wasn’t being discussed that was far more significant.
Sunday night, just before the big collapse, Dan Primack, Senior Editor for Fortune, received an email from the CEO of SecondMarket, Barry Silbert, suggesting that they meet the next day, much sooner than they had formerly planned. Silbert had a major announcement to make, which at the time, for some unknown reason, needed to be accelerated; however, we now know that “that reason” was Mt. Gox.
The announcement, which received little attention do to the circumstances, was that SecondMarket is planning to launch the first ever U.S. based bitcoin exchange -- which many have speculated would finally bring the digital currency to the mainstream. Furthermore; the exchange would bring bitcoin to the institutional level; essentially, making it very easy for average investors to purchase, sell, and invest in the digital currency. While accredited investors have already been able to dabble in bitcoin through SecondMarket’s Investment Trust, Silbert spoke on the future of bitcoin back in December saying, "We're three to six months away from Wall Street dollars moving into Bitcoin in a big way,"
It seems that Silbert was likely referring to what we now know to be the first bitcoin exchange in the US, he went on to say, "Once Wall Street starts putting money into Bitcoin -- we're talking about hundreds of millions, billions of dollars moving in -- it's going to have a pretty dramatic effect on the price."
Perhaps the most favorable component of the SecondMarket exchange when compared to the former most prominent bitcoin exchange, Mt. Gox, is the fact that it bears no resemblance. In Barry Silbert’s words, the model “looks nothing like” Mt. Gox—he went on to explain that it would be "more like a traditional exchange…like the New York Stock Exchange, where you have regulated investors who form the spokes of a hub”
While hurdles still remain in regards to regulation as most states do require exchanges to have money-transmitter licenses, SecondMarket has already obtained a broker-dealer license, which includes and permits the exchange of currency. Meanwhile, the anticipation of a decision on possible regulations from the superintendent of the New York Department of Financial Services, Benjamin Lawsky persist.
The superintendent had these remarks in regards to the Mt. Gox situation:
"This is by no means a death knell for bitcoin or virtual currencies, but it underscores the potential benefits of regulation"