CFTC Head on Why They Has Regulated Bitcoin Futures but Not Bitcoin ETFs | Token Spoken
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CFTC Head on Why They Has Regulated Bitcoin Futures but Not Bitcoin ETFs

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The chairman of the U.S. Commodity Futures Trading Commission (CFTC) Chris Giancarlo has spoken about why the United States has regulated Bitcoin futures but not Bitcoin ETFs. Speaking to CNBC’s Fast Money, Giancarlo said both SEC and CFTC are old agencies and they need to work with old statutes. The chair added they are trying to work with old statutes that were written when there were no Blockchain, AI or VR. He said: We are old agencies, our statutes are written in the 1930s,” and then continued:

More broadly, the SEC, their oversight is over capital formation markets with a big retail focus. Ours, at the CFTC, our focus is on risk transfer markets and we are always focused on derivatives and a lot of that is institutional trading. So we are focused on institutional investments, they are focused on retail.

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Giancarlo also added CFTC and SEC have “different orientations, different histories, so we do come at these things from different perspectives.”

Giancarlo stated he’s not agreeing with the criticism they receiving right now in terms of blocking innovation. The CFTC head say his agency are trying to balance regulation and innovation as he claimed:

It’s the United States that’s gone forward with the very first bitcoin derivatives, with bitcoin futures trading on the CME and also bitcoin options and bitcoin clearing – we are ahead of the world in that. There is no question that the United States is leading in a number of areas. Of course I am agreeing  the US should take a little bit more of a thoughtful and intelligent approach [to], just as the US Congress did 20 years ago in the early days of the internet, but this where we are at right now.

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Giancarlo previously stated the cryptocurrencies are here to stay but they need to be careful against fraudsters. He noted:

“We’re very focused on the fraud and manipulation aspects of cryptocurrency markets right now. In fact, last week, we just won a big victory in Boston federal courts that certifies our authority to prosecute fraud and manipulation in the crypto space and we’ve been very active at it.”

He also added:

“I think that cryptocurrencies are here to stay. I think that there is a future for them. [But] I am not sure if they will ever come to rival the dollar or other hard currencies, but there is a whole section of the world that is hungry for functioning currencies, [like Bitcoin].”

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