J. Christopher Giancarlo, Chairman of the United States Commodities and Futures Trading Commission (CFTC), has reiterated his agency’s focus on fostering and not suppressing the growth of crypto assets.
The official made this claim as a part of his speech on April 4 at the Eurofi Financial Forum, Bucharest, Romania. He primarily deliberated on the prospect of the European Union cooperating with the U.S to improve the derivatives market which now includes crypto assets.
After stating that one of his goals since arriving at the CFTC is to create simpler, less burdensome and less costly but effective rules for market participants, he spoke about how his agency has applied that strategy to crypto assets like Bitcoin.
Chairman Christopher Giancarlo said,
“We have resisted calls to use our legal powers to suppress the development of crypto-assets and the underlying technologies that support them.”
Instead of such a wrong approach, he noted that the CFTC has closely monitored the development of the industry while at the same time, not hindering the launch of new products such as Bitcoin Futures.
To bolster the importance of handling the young industry in such a delicate manner, Giancarlo referred to a research paper published in May 2018 by the Federal Reserve Bank of San Francisco.
That research work provided evidence that the CFTC’s decision to approve the launch of two Bitcoin Futures products, one by CME Group and another by the CBOE had a significant impact on the price of Bitcoin. The improvement mainly centered on curbing speculative demand of the new asset class, thus instigating a price correction to a reasonable extent.
Undoubtedly, the latest comments of the CFTC chair calls to mind an earlier statement by Former Chair Timothy Massad who claimed that either the CFTC or the SEC could regulate the cryptocurrency industry.
It also raises hope that the long-awaited Bakkt Platform which aims to offer Bitcoin Futures will pass the regulatory hurdle soon, and launch its derivative market for crypto investors.
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