During the Singapore Summit which is being held these days, the Chairman of the U.S. Commodity Futures Trading Commission (CFTC) Christopher Giancarlo has expressed his opinion regarding the steps regulators should take while dealing with the relatively new type of finance. Speaking with CNBC Giancarlo said that the area is evolving thanks to the “no harm” approach from the governments' side.
"And 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 said.
However, according to the CFTC spokesman, such an approach should stop where the signs of fraud and manipulation are appearing.
"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," he told.
Replying to the critics coming from the crypto market, that is blaming regulators to be too slow in accepting new tendencies, Giancarlo has said:
"Some would say we're too slow, others have said we've been too fast. So, we at the CFTC, saw the very first regulated offerings of bitcoins futures," he said. "No other regime in the world has allowed this to go forward."
WHY IS IT IMPORTANT?
- In 2015 the CFTC has recognized the digital currencies, as commodities. Later this year, the U.S. District Judge Jack Weinstein in Brooklyn ruled that Bitcoin (Bitcoin) can be regulated as commodities by the U.S. Commodity Futures Trading Commission (CFTC).
- The CFTC and the U.S. Securities and Exchange Commission are regularly calling to fight with money laundering and machinations in the digital money market.