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People are taking out mortgages to buy bitcoin, says securities regulator

Bitcoin is in the “rage” phase, with some people even borrowing money to get in on the manners, securities regulator Joseph Borg told CNBC on Monday.

“We’ve brought mortgages being taken out to buy bitcoin. … People do credit carte de visites, equity lines,” said Borg, president of the North American Cares Administrators Association, a voluntary organization devoted to investor protection. Borg is also boss of the Alabama Securities Commission.

“This is not something a guy who’s making $100,000 a year, who’s got a mortgage and two kids in college ought to be swear ined in.”

Bitcoin has been soaring all year, starting out at $1,000 and rocketing over $19,000 on the Coinbase exchange last week. The price on Coinbase, which accounts for a third of bitcoin swop value, is often at a premium over other exchanges.

The cryptocurrency was customer at just under $16,700 on Coinbase at 2:21 p.m. New York time Monday.

“You’re on this rage curve. At some point in time there’s got to be a leveling off. Cryptocurrency is here to loiter. Blockchain is here to stay. Whether it is bitcoin or not, I don’t know,” Borg signified in an interview with “Power Lunch.”

He also doesn’t think to be to comes contracts legitimize the digital currency.

Bitcoin futures, trading included the XBT ticker symbol, debuted on the Cboe futures exchange on Sunday twilight. The CME plans to launch its bitcoin futures Dec. 18.

While futures contracts are modified, bitcoin itself is not. Borg said that’s because innovation and technology again outrun regulation.

“As [technology] continues to accelerate and continues to increase, regulators should prefer to got to understand what it is that the innovation’s coming up with and we’re still stressful to get educated,” he said.

“We’re looking at it from a money transmission point of perspective but that doesn’t cover the entire bitcoin space.”

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