Comparing the development of cryptocurrencies to that of the Internet, the Chairman of the U.S. Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo holds that regulators need to avoid inhibiting the innovation technology brings.
Tolerant but Cautious
Speaking to CNBC at the Singapore Summit September 14, CFTC Chairman J. Christopher Giancarlo shared his thoughts on cryptocurrency regulations and how it should be approached.
According to the official, cryptocurrencies need to be governed tolerantly. Giancarlo compared them to the Internet and noted that the latter has managed to flourish because the regulators didn’t step in heavily but rather applied a careful, “do no harm” approach.
The Chairman said:
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.
However, Giancarlo also recognizes the risks of fraud and manipulation and holds that cautious also has to be exercised when it comes to policymaking:
When it comes to fraud and manipulation, we need to be strong. When it comes to policy making, I think we need to be slow and deliberate and well informed.
Connecting the Dots
Giancarlo’s position on cryptocurrency regulations echoes an analysis that the Bitcoinist reported on following the appointment of a new SEC commissioner, Elad Roisman, by President Trump. Roisman has stated that he favors an approach that is “fair” and “transparent” towards the nascent cryptocurrency industry.
What’s more, the CFTC’s position on cryptocurrencies has historically been rather positive. Earlier in June, CFTC Commissioner Rostin Benham noted that cryptocurrencies are “here to stay.”
“[V]irtual currencies may – will – become part of the economic practices of any country, anywhere,” Benham said. “Let me repeat that: these currencies are not going away and they will proliferate to every economy and every part of the planet.”
Giancarlo himself outlined that Bitcoin [coin_price] is suited for “long-term buy and hold strategy.”
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