CHRIS GIANCARLO chairman of the US Commodity Futures Trading Commission (CFTC) told CNBC (April 30th) that comprehensive crypto legislation is unlikely in the near future.
The statutes that the CFTC are operating under were written in 1935. Giancarlo pointed out that to address a very new innovation such as Bitcoin will take time.
Giancarlo told CNBC: “The statutes we are operating, you know, were written… in 1935 … And it’s often hard to look at those statutes and find out where something as new and innovative as Bitcoin and many other cryptocurrencies, where do they fall into a regulatory regime which was written decades ago… we see elements of commodities that are subject to our regulation but depending on which regulatory regime you are looking at, it has different aspects of all of that.”
Giancarlo stated further that due to the unique nature of bitcoin it makes it difficult to regulate. Despite this two major exchanges, CBOE and CME, already have fully operating futures contracts.
Giancarlo said: “Bitcoin and a lot of other virtual currency counterparts really have elements of all of the different asset classes whether a medium of payment, whether a long-term asset, and so as regulators we’ve come to grips with this just now in real time and it’s complicated. And I don’t see it being resolved any time soon.”
When asked whether he personally believed that Congress could properly address the issue of regulation within the cryptocurrency space he stated:
“…There’s certainly an appetite among a number of Congressmen and [Congresswomen] and Senators that I’ve spoken to, to approach this with some new eyes, some new thinking and so I think there’s a growing chorus on Capitol Hill for some re-thinking here.”
Again, we have seen another level-headed approach to the regulation of cryptocurrencies form Giancarlo. Which makes for a welcome divergence from the norm.