It is fair to say that US crypto market is still largely operating in a regulatory grey area. Many governments do not have a clear strategy on how to go about the new market. The problem is, they are here to stay and that is the more reason for governments to create regulatory clarity. Nonetheless, cryptocurrency enjoys support from the Commodity Futures Trading Commission (CFTC), if a recent CNBC interview is anything to go by.
Cryptocurrency Will Keep Dysfunctional Economies Going
In the interview, Christopher Giancarlo, Chairman of the CFTC, termed crypto’s existence as inevitable. According to him, the digital assets have a lot of potential to shore up many economies around the globe. He notes that not many economies have functioning currencies. Therefore, Bitcoin (BTC) and other altcoins will have a critical role in keeping those undeveloped economies operational.
Further, the CFTC Chairman believes the very existence of cryptocurrency does not pose any kind of danger to existing currency. According to him, Bitcoin will not challenge the US Dollar in a way that can engender financial calamity.
Such comments are very morale-boosting, especially when they come from the very top of such an authoritative body. According to a recent press release, the CFTC announced that it has the legal power to legislate cryptocurrencies. A US senior judge confirmed such authority in a ruling.
Huge Potential as Cryptocurrency Enjoys Support from CFTC
“Senior judge Rya W. Zobel, of the U.S. District Court for the District of Massachusetts, entered an order holding that the Commodity Futures Trading Commission (CFTC) has the power to prosecute fraud involving virtual currency and denying the defendants’ motion to dismiss the CFTC’s amended complaint,” the release reads in part.
This is an important ruling that puts the CFTC in a critical role of overseeing the regulation of the nascent market. However, Giancarlo notes that the issue of regulation could be another critical point that will determine the success of cryptocurrency.
Speaking to CNBC on the sidelines of the Singapore Summit last month, the Chairman revealed his support for cryptocurrency. In the interview, Giancarlo said that he advocates for regulations of the market, but emphasizes a “do no harm” approach. “The internet flourished because the government did not step in too heavily,” he said.
Therefore, as cryptocurrency enjoys support from the CFTC, enthusiasts can only hope for an expanded horizon. However, as the judge in the ruling that confirmed CFTC’s authority noted, “There will not be development in the crypto sector if we do not demand for the very best from the very beginning.”
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