The federal government should approach regulating cryptocurrencies in the same manner it approached regulating the Internet: By adopting a “do no harm” approach. That’s what J. Christopher Giancarlo, chairman of the U.S. Commodity Futures Trading Commission, suggested.
Giancarlo said this type of cautious approach is necessary in order to prevent inhibiting innovation in the burgeoning cryptocurrency industry while also stamping out scam artists.
He went on to explain that the Internet flourished when it first launched because the government did not strangle the then-budding industry with onerous regulations that would’ve stifled growth and innovation.
“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,” Giancarlo told CNBC. (video below).
Giancarlo: Regulations Should Not Deter Innovation
The CFTC chairman, who was appointed by President Donald Trump, said regulators should be tough on fraud but have a more deliberate touch when it comes to policy-making.
“When it comes to fraud and manipulation, we need to be strong,” Giancarlo said. “When it comes to policy making, I think we need to be slow and deliberate and well informed.”
In recent months, the CFTC and the Securities and Exchange Commission have issued statements warning potential investors to be wary of price manipulation and fraud in the cryptocurrency industry.
In May 2018, the U.S. Department of Justice launched a criminal investigation into bitcoin price manipulation amid erratic, sometimes inexplicable, price movements.
Crypto executives like the Winklevoss twins, Tyler and Cameron, and Galaxy Digital CEO Mike Novogratz publicly praised the DOJ probe, saying regulatory scrutiny will help legitimize the cryptocurrency market by weeding out scam artists and bad actors, as the Inquisitr previously reported.
“Weeding out the bad actors is a good thing, not a bad thing, for the health of the market,” Novogratz said.
Cameron Winklevoss, president of cryptocurrency exchange Gemini, agreed. “We welcome any inquiry that serves to foster rules-based marketplaces and deter bad actors,” Winklevoss said.
In response to criticism that authorities have been too slow when it comes regulating crypto, Giancarlo disagreed.
“Some would say we’re too slow, others have said we’ve been too fast,” he said. “We at the CFTC saw the very first regulated offerings of bitcoins futures. No other regime in the world has allowed this to go forward.”
In 2015, the CFTC, which regulates the commodity, futures, and derivatives markets, said digital currencies are commodities.
In March 2018, a federal judge ruled that cryptocurrencies can be regulated as a commodity by the Commodity Futures Trading Commission.
Tim Draper: Crypto Market Cap Will Top $80 Trillion
After a dismal summer marked by bearish price slumps, tech billionaire Tim Draper remains an avowed bitcoin bull. Draper predicts the market capitalization for cryptocurrencies will top $80 trillion by 2023.
The venture capitalist has also set a $250,000 bitcoin price target for 2022, as the Inquisitr previously reported.
“I’m thinking $250,000 a bitcoin by 2022,” Draper declared. “They’re going to think you’re crazy, but believe it. It’s happening.”