US Regulators in Splits over the Future of Cryptocurrency as CFTC Chief States “Crypto are here to stay”


US Regulators in Splits over the Future of Cryptocurrency as CFTC Chief States “Crypto are here to stay”

While the SEC is still in under fire of halting innovation with not letting the Bitcoin ETF go through, here is another regulatory who has a completely opposite view on the cryptocurrencies, the CFTC. This positive and pro-crypto views of the CFTC were reiterated by its Chairman, Chris Giancarlo, who was interviewed on CNBC Fast Money by Bob Pisani.   

CFTC’s view differs from the SEC

U.S. Commodity Futures Trading Commission (CFTC) chairman Chris Giancarlo has a bullish stance on cryptocurrencies and is pro-innovation clearly and that’s what he reconfirmed as he said that cryptocurrencies do have a future while giving an interview to CNBC.

Unlike the Securities and Exchange Commission (SEC) which has been standing as a hurdle of allowing bitcoin Exchange Traded Funds (ETFs), the CFTC has been remarkably upfront about the prospect of the new innovation.

Giancarlo, in an interview with CNBC Fast Money, said today,

“We are very focused on fraud and manipulation in the crypto space and very active at it.”

Being asked on whether the US is not very pro-innovation by the Pisani, the chairman replied,

“And yet it is the United States that has gone forward with the very first bitcoin derivatives and futures with the CME and bitcoin options and bitcoin clearing. We are ahead of the world in that. However, there are some other areas where we need to take a more thoughtful approach.”

Explaining why there is a disparity between SEC and CFTC stances on cryptocurrencies, Giancarlo states that the statures of all regulations in the USA were written in somewhere in 1930’s and everyone is trying to repurpose them to fit in innovation. According to him, SEC’s focus is more towards capital formation with a retail focus while CFTC’s focus is on risk markets and has a more institutional focus. Since the orientations of both regulators are different, their perspective also is different.

He went on to say that cryptocurrencies are here to stay and they have a definite future although he doesn’t feel it’s going to happen instantly.

Also, read: Crypto Industry Demands Regulators a Clear, Firm and Accommodative Policy that Supports Cryptos

Regulatory corridors echoing cryptocurrencies

Since the cryptocurrencies have gained the attention of common people, the regulatory corridors in the US have been abuzz with key decisions regarding this nascent technology and innovation which have a potential to change the way the world functions today.

The SEC has been busy assessing Bitcoin ETF applications and still isn’t convinced with the price manipulation protection mechanisms the exchanges, on which the bitcoin trades, currently offers.

On the other hand, In June CFTC official, Rostin Behnam shared his bullish views on cryptocurrencies that are going to penetrate every part of the economy. Seeing Blockchain technology as a real-world problem solver, he also warns of the negative effects if left unregistered.

In another corridor of regulation, at Capitol Hill in Washington, Republican Congressman Warren Davidson organized a gathering for more than 50 executives of companies in both traditional finance and blockchain industry. In the meeting, the industry representatives reiterated to the lawmaker that Regulators must adopt a clear and firm policy towards crypto or else the blockchain companies will be forced to look for pastures new.

With a divergent approach used by all the regulators in the US one things is sure that until the U.S. gets its regulatory act together, it risks of losing out on innovation and investment. The crypto community is demonstrating patience about a bitcoin ETF, and chances are they’ll need to remain that way until early 2019 at the soonest.

Will the US catch up with regulations and lead the world in the crypto race? Do let us know your views on the same.

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