December 19, 2018

CFTC Warns US Government To Go Easy With Crypto

One of the main aims of governments and regulatory bodies all over the world is to bring further regulation to the world of Cryptocurrencies and digital financials. The US government is focusing intensely on carving out the exact legislation that will help to bring Cryptocurrencies well into the mainstream of financial markets. However, a director for the Commodity Futures Trading Commission or CFTC for short has pleaded to Congress to rethink its current strategy of going in all guns blazing and to rather adopt for a more gradual approach. Let us examine as to where this recommendation is coming from.

More On The Congressional Meeting

The proclamation was delivered during the course of Wednesday the 18th of July by Daniel Gorfine who is currently overseeing the LabCFTC. The message he felt compelled to deliver was brought about by the group of congressman who wanted to receive testimonials on the Crypto-system and coins, as well as other financial assets. Those who stood with Gorfine on the issue include JP Morgan ahead of Blockchain development and oversight at Amber Baldet, as well as the previous CFTC Chairman Gary Gensler and the active partner in A16Z, Scott Kupor.

Statement From Daniel Gorfine

Gorfine’s introductory remarks noted that there was currently no clear definition, at least within the context of the United States, of what a financial commodity truly is. This lack of cut and dry terms may lead to the congressman in charge of reviewing all of these digital assets as one to the detriment of all financial assets. Gorfine went on to note how there is a large number of products falling under these banners that are of no consequence to the government. Yet, he did concede that one of the key things for the government to work on is the growing demand for futures and other items such as swap products that are using the digital asset community as a base to work from.

Gorfine at once acknowledged the pressing need to have this legislation in place, not just to heightened awareness into the product but to ensure that all Americans are covered when using the platforms. Gorfine wanted to impress upon Congress that while there is a need for a greater presence of a legal framework, it is also very clear that too rigid a guidebook may do more harm than good. Gorfine wanted to impress upon the members of Congress that to lock Cryptocurrencies and other online financial assets up into a gilded cage, was to cause more harm than good to the industry. Stifling the Crypto start-ups will greatly reduce the likelihood of creativity within the industry.

The Final Thoughts

Another interesting note to come out of this Congress briefing on Cryptocurrencies and online financial assets are that there is a large sector of society who are still unaware of what Cryptocurrencies or anything like them is about. Many members of Congress wanted to find out about how they work or rather what is the mechanism behind them, and as was explained Cryptocurrencies are a new model of money, it is a possible replacement to the financial system. With change comes all kinds of things, however, one thing is for certain, Cryptocurrencies are continuing on their path and will be here to stay.

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