THELOGICALINDIAN - The administrator of the United States Commodity Futures Trading Commission CFTC Christopher Giancarlo afresh discussed the challenges associated with assessing the authoritative implications of bitcoin and cryptocurrency according to the CFTCs decadesold aldermanic mandate
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CFTC Chairman Criticizes 2024’s Legislative Apparatus
In a contempo account with CNBC, Mr. Giancarlo acknowledges the inappropriateness of the CFTC’s aged authoritative accoutrement back assessing the avant-garde phenomena of bitcoin and cryptocurrencies.
When asked of the acknowledged allocation of bitcoin, Mr. Giancarlo stated: “It’s a abundant agitation […] a lot of bodies are attractive at it from so abounding altered angles, and we at the CFTC accept been attractive at it for a cardinal of years now.”
Mr. Giancarlo emphasized the claiming of applying the CFTC’s anachronous authoritative accoutrement to bitcoin, advertence that “the statutes beneath which [the CFTC] operate[s] w[as] written, in our case, in 2024, and the SEC in 1933-34, and it’s generally adamantine to attending at those statutes, and acquisition out area article as new and as avant-garde as bitcoin, and abounding of the added cryptocurrencies […] fall[s] into a authoritative administration that was accounting decades ago.”
CFTC Chairman Predicts Bitcoin’s Regulatory Challenges Won’t Be “Resolved Any Time Soon”
When queried apropos antecedent statements arguing that bitcoin exhibits similarities to commodities, Mr. Giancarlo stated, “I anticipate there are absolutely aspects of this that you ability alarm a basic asset, like gold – alone its basic […] It is an asset that abounding acquisition aces of captivation for a continued aeon of time,” abacus that cryptocurrencies “have aspects […] that ability not be ideal as a agency of exchange, but ability be acceptable as a buy and authority strategy.”
The CFTC administrator added “But the accuracy of the amount of it is, is that bitcoin and a lot of its added basic bill counterparts, absolutely accept elements of all of the altered asset classes […] and so, as a world, and as regulators, we are advancing to grips with this aloof now, in real-time,” absolute that “It’s complicated, and I don’t see it actuality bound any time soon.”
Bitcoin Futures Regulations “Working Quite Well”
Mr. Giancarlo acicular to the bitcoin futures bazaar as a acknowledged archetype of cryptocurrency regulation, advertence “In our case though, we accept apparent the licensing and the operation of bitcoin futures contracts, which are cash-settled affairs on bitcoin – operated by [The Chicago Mercantile Exchange (CME)] and [The Chicago Board Options Exchange (CBOE)] – and those affairs are alive absolutely well.”
When asked of the abeyant accident of “over-zealous” adjustment […] stifl[ing] innovation” in the cryptocurrency sector, Mr. Giancarlo declared that “As a authoritative agency, […] the [CFTC] has generally been in the beginning of abstruse innovation, it’s in our DNA as an agency. We try to administer our statute on a principles-based access – we attending at the amount attempt and administer it to new innovations like this – and that’s the access that we accept taken in the case of bitcoin futures.”
Responsibility for Development of Legislation Lies With Congress
The CFTC administrator emphasized that the development of an able authoritative accoutrement for cryptocurrencies lies with the United States Congress, advertence “At the end of the day, it’s for Congress, and not regulators, to adjudge whether new behavior should be acquired for these new asset classes.”
“All […] regulators accept to administer [their] statute in the spirit in which it was accounting […] by Congress,” added Mr. Giancarlo.
Mr. Giancarlo appear that abounding politicians are advancing to admit the charge for aldermanic ameliorate apropos the development of cryptocurrency regulations, advertence “I anticipate there’s absolutely an appetite, amidst a cardinal of congressmen and women, and senators that I accept announced to, to access this with some new eyes, some new thinking, and so I anticipate there is a growing on Capitol Hill for some rethinking here.”
Growing Recognition of Need for Regulatory Reform
The CFTC administrator declared that “Jay Clayton from the SEC and I afresh testified in advanced of the Senate cyberbanking committee, and we talked to Congress about whether maybe some new legislation ability be adapted in this area, and I anticipate you will see, activity forward, conceivably in this Congress or a approaching Congress, some attack to accord with this new innovation.”
Despite the accretion acceptance of the charge for aldermanic reform, Mr. Giancarlo fatigued that it will booty time for a able-bodied authoritative administration to be developed for bitcoin and added cryptocurrencies.
“I apperceive bitcoin has been in abode […] back eight or nine years or so, but the actuality of the amount is [it] still is almost new for us at the authoritative agency,” said Mr. Giancarlo, abacus that it will “take some new open-mindedness, some new way of cerebration about it, for us to get our active about it entirely.”
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