Chris Giancarlo, the former Chairman of the United States Commodity Futures Trading Commission (CFTC) has revealed that it is the commission, and not the Securities and Exchange Commission (SEC) that has the experience regulating the Bitcoin (BTC) and broader crypto market. Taking to his Twitter handle, Giancarlo, who served as the 13th CFTC boss under President Donald Trump said if the Biden’s Administration is keen on regulating the market, it will appoint a new CFTC Chairman.
Only one US regulatory agency has experience regulating markets for #Bitcoin & #Crypto and it is not @SECGov. It is @CFTC. If #BidenAdministration is serious about sensible #Cryptocurrency #regulation, it needs to nominate a CFTC #chairman.
— Chris Giancarlo (@giancarloMKTS) August 4, 2021
Crypto regulation in the United States is a very polarized subject with diverging approach from various US agencies. The ascension of the current SEC Chairman Gary Gensler has been tipped to usher in the needed normalcy and provide the direction the nascent ecosystem requires, however, the regulation approach has been stalled since Gensler was sworn in back in April.
Over time, the CFTC has taken a proactive stance when it comes to the crypto ecosystem. Most of the position of the agency, through its top leaders are often antagonistic to those of the SEC. While the SEC took a legal action against blockchain payments firm Ripple Labs on the grounds that its associated crypto, XRP is a security, several CFTC executives have often maintained a contrary position.
Should the CFTC Take the Reigns of Crypto Regulation?
Giancarlo’s assertions implies that the CFTC can do a better job than the SEC when it comes to regulating the crypto market. However, a more practive and functional proposition was offered by Sen Elizabeth Warren who sent a letter to Treasury Sec Janet Yellen to unite all regulators in a bid to bring a unifying oversight on the market.
While many sees a dissenting position amongst the core US agencies tasked with regulating the broader financial market, the extant laws might be a hindrance to the SEC doing its job. Chairman Gensler recently asked Congress to grant it additional powers so it can duly regulate the cryptocurrency trading platforms operating in the country.
At present, the need to bring functional regulators to govern the crypto ecosystem is crucial. The market is seeing increasing embrace from both the retail and institutional investors, and there are indications of incremental growth in the crypto ecosystem over time. Products like a Bitcoin ETF which has gone live in nations like Canada, Germany and Switzerland amongst others are being advocated to be approved by the SEC which has a number of applications on its table for review.
In all, crypto market proponents wants regulations that will make new technology innovations thrive, irrespectibve of the agency that takes the lead.