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CFTC Chair: This May Help Cryptocurrency Market “Mature”

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A stronger flow of institutional investors could help cryptocurrency markets “mature,” notes U.S. Commodity Futures Trading Commission chair J. Christopher Giancarlo.

“We’ve still got a long way to go, there’s a lot of issues in some of these spot exchanges, a lack of transparency, a lot of conflict of interest, a lack of systems and systems safeguards, and that’s a concern. But you know, like all things, it takes time to mature, and with the movement of more institutional investors into the space, I think we’ll see that [maturation].”

What May Help Push Institutions Into Cryptocurrency Market

The cryptocurrency regulatory environment is full of gray areas.  A lack of legal clarity on this issue makes it impossible to manage for institutions.  Once this is addressed, perhaps we’ll see greater interest.

Additionally, volatility makes many uneasy.  For Bitcoin to function as a means of payment, it needs stability.  At the moment, that doesn’t exist.  It can price at $6,00o one day, and $6,500 the next.  Such volatility outstrips all other currencies.  Furthermore, we have to consider that Bitcoin is a form of money with a fixed supply on its own blockchain, with no central bank to restrict supply if necessary. That makes bitcoin inherently prone to volatile price swings.

No Stranger to Cryptocurrency

Not long ago, Giancarlo also advocated for a “do no harm” approach.

“I’m advocating the same approach to cryptocurrencies and all things having to do with this new digital revolution of markets, and of currencies, and of asset classes,” says J. Christopher Giancarlo, chairman of the U.S. Commodity Futures Trading Commission told CNBC.

Transparent Approach

His statements echoed those of new SEC Commissioner Elad Roisman.  In fact, this Donald Trump-appointee also favors a fair and transparent approach to cryptocurrency.

“It is essential that the SEC approach these new challenges in a fair and transparent manner, provide clarity and certainty to the markets and investors, and enforce the laws and regulations that hold market participants accountable,” he said.

In conclusion, with the CFTC apparently on board with cryptocurrencies, we may approach greater global adoption.  Moreover, it doesn’t hurt that members of the SEC are in favor of cryptocurrency, too.

 

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