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How does financial authorities' attitude to cryptocurrencies may change. Example of SEC and CFTC

03/15/2019
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In the world, there is a change in attitudes towards cryptocurrency. Christopher Giancarlo, head of the US Commodity Futures Commission, said that the blockchain will radically change the future of the global financial system. Cryptocurrencies become a reality from which you can no longer hide.

CFTC cryptocurrency presentation

The Office of Christopher Giancarlo from the very beginning differed a quite loyal attitude to cryptocurrency. As early as 2017, it opened the LabCFTC division, which came to grips with studying the possibilities of the blockchain and fintech industry. During this time, it has established business relationships with colleagues from Singapore, the United Kingdom and Australia to coordinate joint activities.

The Commodity Futures Trading Commission (CFTC) supervises the operation of commodity exchanges. It began its activity in 1974. The chairman of the commission is appointed by the president of the United States and approved by the Senate.

In a statement, the head of the CFTC announced support for new investment decisions. In addition, he is a supporter of cryptocurrency futures trading. According to Christopher Giancarlo, his organization has plans to conduct an objective analysis of the situation. An interesting fact is that, according to Giancarlo, it is the blockchain that will be able to eliminate the threat of a return to the global financial crisis.

Cryptocurrencies and SEC position

A completely different point of view is held by another American regulator - SEC. Here, digital financial assets are warier. Even the most loyal of his commissioners Hester Pierce says that delaying the adoption of new financial instruments will only allow them to develop at a faster rate.

The Securities and Exchange Commission was formed in 1934 and is now the country's main regulatory body. It controls the entire turnover of securities in the United States.

At the same time, Hester Pierce believes that cryptocurrency exchanges should be allowed to switch to the principle of self-regulation. She admits that now there is not enough regulatory framework to control the blockchain and protect the rights of investors.

Conflict or a new stage in the development

Although the SEC is much higher than the CFTC in its authority, the situation is hardly unique. The fact is that US lawmakers also see the unrealized potential of the cryptocurrency market.

In the autumn of 2018, a whole controversy about this issue unfolded in Congress. Its main idea was the view that the SEC is too strict about regulating digital financial assets. This means that it is worth taking the regulation out of its control and transferring it to the CFTC.

However, so far these initiatives have remained without continuation. But there are still some consequences of this attack. So, the head of SEC Jay Clayton said that some Bitcoins and ethereum can really lose the status of security. It is too early to say how this confrontation of government will end. But it is already clear that the blockchain and cryptocurrency have strong support in American society.

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