Crypto Regulation Act: Cryptocurrencies in focus: Regulation could cause Bitcoin price to double | news
Forex in this article
• Growth through regulation
• Institutional investors want regulatory certainty
• CFTC as controlling body in the crypto market
The call for Bitcoin, Ethereum and Co. to be regulated is getting louder. In all probability, the authority responsible for controlling the crypto market in the USA will be the Commodity Futures Trading Commission (CFTC). The chairman of the CFTC sees regulation as an opportunity for significant growth in the crypto market.
Rostin Behnam’s central argument for regulation is that growth is only possible through regulation. Institutional investors would only venture into the crypto market if it had a regulated structure and thus a certain level of security and control. “Non-banks [Krypto]-Institutions thrive on regulation, they thrive on regulatory certainty, they thrive on a level playing field, […] because they are the smartest, the fastest, and the best equipped,” Rostin Behnam said in a roundtable at the NYU School of Law.
So far, the CFTC has no control or oversight mechanisms for the crypto market. Rostin Behnam complained that his authority had not had the funds for independent investigations. The 60 cases pursued so far are exclusively due to statements by whistleblowers and complaints.
Crypto regulation in the US
In the crypto regulation law, which is currently available as a bipartisan draft, the CFTC is designated as the responsible body. Spot markets and the registration of crypto trading companies would then be under their control. The CFTC chairman welcomed the bill, but added that the agency’s current budget would need to be adjusted as a result. Control tasks are currently performed by both the CFTC and the SEC, the US Securities and Exchange Commission.
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