CFTC Chairman Highlights Cryptocurrency Being Helpful for Underdeveloped Economies
Despite expressing confidence that digital currencies cannot replace the dollar, the chairperson of the Commodities Futures Trading Commission, Chris Giancarlo, acknowledges that in some countries, people are yearning for a functional monetary system that is better than their local currency.
Specifically, Chris highlighted that over 67% of the countries in the world have currencies that have very little value. While Bitcoin and other virtual currencies are a viable solution to this problem, the implementation of a new system may take a lot of time and resources to perform.
Additionally, Giancarlo pointed that the US has set a global precedent by becoming the first country to legally approve of Bitcoin futures and options. However, Chris also cautioned that there are some aspects of digital currencies that require a meticulous approach, similar to the one employed by the Congress during the introduction of the internet.
Regarding the differing stance of the SEC and CFTC, Chris said that both were traditional agencies that are trying to onboard the latest technological advancements.
He also added that the two agencies have adopted different standpoints because the Sec deals mainly with retail investors, whereas Commodities Futures Trading Commission deals with institutional investors. The difference being referred to is the approval of Bitcoin futures by CFTC while the SEC has barred the introduction of Bitcoin ETF.
The Congress is expected to make amendments to the outdated finance regulations soon. This is because of the impending presentation of a bill proposing such changes to include the regulation of the crypto space.
In this regard, Giancarlo revealed that the bill will have both a favorable and astringent side. Precisely, it will favor crypto innovations and take stern actions against fraud and manipulation incidences. The upcoming fintech conference to be hosted by the CFTC is the first demonstration of its willingness to support legitimate crypto projects.