Former CFTC Commissioner Admits Crypto Is Growing But Needs to Build Trust
Former CFTC Commissioner Says Bitcoin and Cryptocurrencies Are Growing
Sharon Bowen, a former Commodity Futures Trading Commission (CFC) Commissioner, talked about regulators and cryptocurrencies. At the Bloomberg conference, she talked about the biggest challenges that the CFTC is currently facing.
She said that the CFTC has to focus on protecting investors from market manipulation and scams. However, the agency would be able to do that by educating people about the risks that are related to virtual currencies.
Although banks and other financial institutions are starting to pay closer attention to cryptocurrencies and blockchain technology, they would not hold any crypto on their balance. At least anytime soon, she said. Additionally, she mentioned that banks need to consider many other issues such a stress test and the requirement to keep 1250% dollar for dollar capital for each crypto asset.
She then talked about how lawmakers could create this regulated space. About it, she mentioned:
“We have applications to have regulated transparent exchanges and that’s important. I think that’s sort of the very first step that they will you know confidence and trust are the two main ingredients to a healthy vibrant environment financial ecosystem.”
She said that in order to have a vibrant market it will be necessary to improve transparency and protection from hacking. This would allow new investors and institutions to place their funds in the virtual currency market.
There are several companies that are already working in order to offer institutional-grade trading services. Goldman Sachs, Fidelity and Intercontinental Exchange are all developing their own platforms to help institutions gain exposure to virtual currencies.
Although she knows that there are some constraints and challenges for Bitcoin and cryptocurrencies, she remains positive about the future of the space. She mentioned that she is optimistic and that transparency is always the solution to a vibrant market.