Regulators Press Congress For More Crypto Regs

Bitcoin

The heads of the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) are slated to testify in front of Congress on Tuesday (Feb. 6), and are expected to call for more oversight of cryptocurrencies, including bitcoin.

According to a report in Reuters, Christopher Giancarlo, chairman of the CTFC, and Jay Clayton, chairman of the SEC, are expected to testify that the current rules, which have been cobbled together for cryptocurrency exchanges, may need to be replaced by a more federal regulatory framework. This comes as bitcoin declined more than 50 percent in December alone after surpassing $19,000 at one point last year.

The hearing in which Giancarlo and Clayton will testify is more of a fact-finding meeting, focused on what powers the SEC and CFTC have when it comes to overseeing cryptocurrency exchanges. It will also explore how the Commissions can protect investors from the volatility associated with cryptocurrency and from fraud in the largely unregulated market.

Recently, both regulators have been going after digital currency fraudsters, including ones that try to scam investors with initial coin offerings (ICOs). It’s still up for debate as to which regulator is best to oversee cryptocurrency, per the report.

“We are open to exploring with Congress, as well as with our federal and state colleagues, whether increased federal regulation of cryptocurrency trading platforms is necessary or appropriate,” Clayton wrote in his prepared testimony. Meanwhile, Giancarlo said in his testimony that a federal licensing for the cash market would help address any holes in the current oversight system, and could also include capital requirements and other measures to prevent fraud, money laundering and market manipulation.

Amazon to Shut Down ‘Prime Try Before You Buy’ Service

Amazon Prime Try Before You Buy

Amazon will shut down its “Prime Try Before You Buy” service on Jan. 31, according to a notice on the company’s website.

The Information reported the ending of the service Friday (Jan. 10), saying Amazon launched the service in 2017, allowing Prime members to order clothing, try it on and decide whether to keep it before being charged for it.

CNBC reported Friday that the move is the latest example of Amazon’s efforts to reduce costs across the company.

After the service is wound down, Prime members will still be able to order clothing, make normal returns and receive a refund, according to the report from The Information.

An Amazon spokesperson told The Information that the company offers other features for clothes shoppers like personalized size recommendations, improved size charts and a virtual try-on tool.

Amazon touted its virtual try-on capabilities in a March blog post, saying the option is available for products from popular brands.

“Amazon’s Virtual Try-On feature brings the in-store experience to your mobile device by using augmented reality to help you visualize a new pair of sneakers or sunglasses yourself, as well as lip colors and eyeshadow in real time, wherever you are,” the post said.

Many clothing brands and retailers are turning to artificial intelligence to manage the costly problem of returns by helping consumers buy products they will actually want to keep when they arrive, PYMNTS reported in June.

A practice called “bracketing,” in which consumers buy items in multiple sizes or colors, intending to return some of them later, is reportedly one of the contributors to rising return ratesHappy Returns reports that nearly two-thirds of consumers engage in bracketing.

Increased return volumes pose logistical and financial challenges for retailers, Loop Returns CEO Hannah Bravo told PYMNTS in an interview posted Monday (Jan. 6).

“For online retailers, handling returns is far more complex than shipping orders,” Bravo said. “Each return must be manually unpacked, checked and restocked, requiring extra staff and warehouse space. This costly process has pushed retailers to seek new technologies that can both reduce returns and keep customers satisfied.”