Berger: Today, the regulatory landscape is opaque. Multiple regulatory agencies and the courts have asserted authority, often with opposing views. Most are attempting to fit Bitcoin into existing frameworks. Only the State of New York has proposed a new framework, developed specifically for Bitcoin. Whatever the outcome, most in the Bitcoin ecosystem look forward to the day when there is a level of regulatory certainty within which they can conduct business.
Grove: What are the real and potential implications for financial advisors?
Berger: Bitcoin has value because it is scarce and useful, and those characteristics have led to significant interest amongst investors and their advisors. But compliance departments have been putting up gates and to date, most – though not all – advisors are restricted by their clearing, custody and regulatory platforms from presenting clients with opportunities to gain exposure to Bitcoin. That said, suffice it to say that every financial services firm on Wall Street and across the globe is looking at the opportunity to determine how they can participate and benefit. I expect many will overcome the compliance challenges in 2015, opening a sea of opportunity for well-prepared financial advisors.
Grove: Are there any resources you can recommend to our readers if they want to learn amore about how Bitcoin works?
Berger: There is almost too much information available on Bitcoin today, particularly for the casual observer and computer scientists. The Digital Currency Council offers a 45-minute introductory online course specifically designed for financial professionals, as well as more in-depth curriculum for those who are interested in pursuing certification and building the leading financial institutional of tomorrow.