Following last week’s roundtable on Capital, the CFTC Chairman Chris Giancarlo spoke on CNBC about the future of Bitcoin and Cryptocurrencies. Mr. Giancarlo was surprisingly optimistic on the future of cryptocurrencies stating that cryptocurrencies are here to stay.
Mr. Giancarlo was clear that at this moment the CFTC and the SEC are focused on getting rid of the fraud in the cryptocurrency markets. He noted that the recent ruling by a federal court in Boston giving jurisdiction to the CFTC over cryptocurrency related cases was favorable and will help shape a regulatory structure to protect the public. The Chairman noted that one of the challenges for the SEC and CFTC is that they are built on 1930’s law which is outdated and needs to be updated for the new asset class.
When asked about the risk of falling behind when it comes to innovation the Chairman pushed back and noted that the US was the first to establish a derivatives market for Bitcoin and looks to expand to other cryptocurrencies shortly.
Mr. Giancarlo also clarified the role of the SEC and CFTC. The SEC is there to primarily protect the public and the CFTC is there to protect the integrity of the markets (specifically risk transfer) and is there mainly for the Institutional Investor.
The Chairman pointed out that cryptocurrencies serve an essential role as an alternative to those FIAT currencies from failing economies.
It is refreshing to hear from the head of CFTC that they do see a future for cryptocurrencies and are aware of the importance of innovation and are looking to the future.