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2019 May Be the Year of Regulatory Response to Crypto: Ex-CFTC Chairman
Posted On 13 Oct 2019
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Former Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo, who had parted ways with the regulator this summer, has stated that he expects 2019 to be the year when regulators may start considering some response to cryptocurrencies.
Giancarlo voiced his opinion during an interview with industry news outlet The Block published on Oct. 9, stating:
“I would say 2019 is the year in which there's a growing recognition that regulators and policy makers need to do more than just be aware of these, but may actually need to look at some policy responses.”
Libra spurs regulators to take action
Giancarlo also believes that regulators will increase their involvement in the crypto space this year because of “a combination of Libra and the prospects for central bank digital currencies.” He also noted that the United States Securities and Exchange Commission’s chairman Jay Clayton is probably “thinking about some of the policy responses.”
Furthermore, Giancarlo also suggested that “the time has come for thoughtful consideration of a digital dollar.” According to him, the dollar’s hegemony would be further cemented by such a development:
“I think that the dollar's status as the world's primary reserve currency should be enhanced with a digital component and done in a way that doesn't have to disintermediate the traditional banking system but can be done so traditional finance financial intermediaries can play a role in a digital component to the dollar.”
Giancarlo admitted that he does not “see the Federal Reserve becoming a deposit-taking institution, but where banks would continue to do that, but would use a uniform set of technology protocols in order to provide access to a digital dollar format.”
As Cointelegraph reported on Sep. 29, cryptocurrency derivatives firm LedgerX alleges that Giancarlo — when he was the CFTC chairman — obstructed the approval of its amended Derivatives Clearing Organization registration because of personal bias against the company’s CEO Paul Chou.
