CFTC Chairman Rostin Benham made statements about the future of cryptocurrency regulations on July 25. The regulator is trying to keep a close eye on the future of the cryptocurrency market.
These two cryptocurrencies can be in any portfolio
The CFTC Chairman explained how the country’s main financial portfolios could soon include cryptocurrencies such as Bitcoin and Ethereum:
We are here today because as surveys and surveys show, one in five adults has invested or used cryptocurrencies. Cryptocurrencies are also on their way to becoming a part of mainstream American portfolios.
Benham also highlighted the industry’s tremendous increase in participation, which fuels continued growth. He also stressed that it is exemplified by cryptos whose distinguishing feature is “an open, essentially unlimited flow of information.”
Changing the editing strategy
Amid all these factors and the current “crypto winter,” Benham suggests continuing “market-oriented regulation.” According to the CFTC Chairman, the threat of cryptocurrencies to cash markets requires direct monitoring. Since May, a number of crypto companies have announced their performance due to excessive volatility. Benham emphasizes the following:
Although less transparent, the CFTC’s actions on cryptocurrencies have evolved with the market. Countries are now working hard to regulate cryptocurrencies. That’s why Benham announced that the CFTC has transformed the LabCFTC initiative, launched by former President J. Christopher Giancarlo, into an Office of Technology Innovation (OTI) to better engage with fintech innovators and the burgeoning crypto industry.
CFTC officials have not always been as enthusiastic about cryptocurrency. In May, a commissioner interpreted cryptos as “lottery tickets.” He also stated that most crypto projects do not have client disclosures. The CFTC member says this has led them to think customers are “surely going to hit it big”.
Goldsmith Romero would have compared the last crash to 2008
A different CFTC commissioner, Christy Goldsmith Romero, issued a similar warning in June on the relationship between the crypto market and the banking industry in the years before the 2008 financial crisis, calling for more regulation for the industry before it was too late.
Speaking in an interview with Axios on June 14, Romero stated that the crypto market has grown significantly in an unregulated environment alongside the growing correlation with equities. As we quoted as Kriptokoin.com, the statements caused concern at one point. According to Christy Goldsmith:
The first similarity is that we have a fairly large market that is largely unregulated, and regulators have no window into it. The second is that the market has become quite broadly correlated with the broader stock market… It wasn’t designed that way, but that’s what happened. In a falling market you will see risk arise and that becomes really important.
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