- Former CFTC Chairman Gary Gensler attended Business of Blockchain event
- Clear regulations would protect participants from market manipulation, loss of private keys, etc.
Creating an atmosphere for growth is crucial for any budding market. Since Bitcoin first established digital assets as an option for investors and consumers, there’s been a battle against the world of traditional finance, fighting back and restricting the market. However, as more traders joined the community, economics struggled (and continue to struggle) with establishing criteria that allows them to function in a balanced way. Though many crypto proponents are against regulation, the former chairman of the Commodity Futures Trading Commission (CFTC) Gary Gensler commented that the crypto market needs regulation, as it will help with the industry’s growth.
Regulations are often implemented to guide the economy and even the government in the way that cryptocurrency will be handled, but they also provide protection to consumers. Gensler spoke at the MIT Technology Review's Business of Blockchain 2019 today, where he discussed his view with Cointelegraph.
While discussing the way that regulations would impact services and products, Gensler pointed out that protection for consumers and investors must be covered in the law. This level of protection defends victims of market manipulation, private keys losses, and other dangers that are common in the market.
Gensler was asked if the approval of a Bitcoin ETF would make a difference in the market. He replied that the SEC is working to make sure that the Bitcoin ETF market would not be at risk for manipulation, in the event that there’s an exchange-traded fund made available. As Gensler sees it, the market needs to be overseen appropriately to ensure that they can mature. Further regulations could ultimately lower the risk of market manipulation, which needs to be reduced to truly see the market flourish.
While attending the MIT Bitcoin Expo 2019 two months ago, Gensler had argued that it is important to issue a national level regulation that can cover crypto trading broadly. This regulation would coordinate the efforts between preventing money laundering and dealing with the discrepancies found in the current regulatory situation in multiple states.
During the same event, SEC Commissioner Hester M. Pierce voiced her support for only having light regulations to allow more room to grow. However, she reminded attendees that security offerings still have to follow the registration requirements issued by the SEC.
The current chairman for the CFTC, Christopher Giancarlo, commented that he sees more clearinghouses to submit applications, due to the growing interest in Bitcoin, among other crypto assets.