CFTC Shares How Institutional Investors Entering Crypto Market Increases Ecosystem Maturity

CFTC Chair Affirms That Institutional Investors Will Help Crypto Market Mature

During 2018, we have seen an influx of institutional investors entering the crypto market. Now, the U. S. Commodity Futures Trading Commission (CFTC) chair J. Christopher Giancarlo has affirmed today, October 12, that this influx can be good for helping the crypto space mature.

The regulator has discussed the crypto space and the efforts of the agency during an interview with Fox Business. According to him, the noticeable increase in institutional investors is a good sign that might bear fruit in the near future.

He also added that the market still has a long way to go, as there are plenty of issues in many exchanges and a great lack of transparency as well as conflict of interest in the industry, which are important concerns. However, he has also stated that all things take some time to mature and that the movement of the institutional investors in the space and can be very good for the industry.

During the interview, Giancarlo has also taken some time to discuss the effort of the agency to regulate the market and he has explained that the CFTC has taken a “two handed” approach to regulate it. The first one is to weed out the scammers while the second is to help in the innovation.

Taking Out The Scammers

It is no secret that the crypto market attracts plenty of scammers due to its lack of regulation. Because of this, the chair of the CFTC affirms that some important victories that the institution had in the past few months are going to be instrumental for getting better results in the future.

He cited two cases in which the Commodity Exchange Act was used against scammers by two separate federal judges and some other judicial decisions as proof that the efforts starting to bear fruit.

Talking about innovation, Giancarlo has affirmed that the agency has taken an approach to avoid doing any kind of harm to the industry in the first place and going after only the businesses that may be harmful for the creation of a legitimate crypto market.