Recently CFTC classifies Cryptos as commodities. Now the cases of My Big Coin, 1Broker and many cases similar will be heard in court without any arguments. Since cryptos are classified as commodities they can’t be seen as securities. However, Commodity Futures Trading Commission (CFTC) chairman, Christopher Giancarlo believes that cryptocurrencies are here to stay and have a lot of potentials.
The Chairman describes cryptos with a lot of potential in countries where national currency is struggling to maintain the value. He also says that it would not challenge the US Dollar in a meaningful way.
He adds by saying, I personally think that cryptocurrencies are here to stay. I think there is a future for them. I’m not sure […] there’s a whole section of the world that really is hungry for functioning currencies that they can’t find in their local currencies.
Christopher Giancarlo adds, There are 140 countries in the world, every one of them has a currency. Probably two-thirds are not worth the polymer or the paper they’re written on. Those parts of the world rely on hard currencies. Bitcoin [or another] cryptocurrency may solve some of the problems.
He further clarifies by saying, “We’re talking maybe 10 years down the road.”
First initiative by Obama in 2013 to serve as the commissioner has gone full-time to chair the commission, is given a name “Crypto dad”. This was due to his opening speech at the SEC commission on virtual currencies. The speech expresses support to the crypto community due to his open-mindedness.
In February 2018, along with the SEC commission Jay Clayton, testifies before Congress on a matter of virtual currencies. The hearing addresses the importance of cryptocurrencies and impacts it could have on the economy.
He adds by saying, “We owe it to this new generation to respect their enthusiasm for virtual currencies. With a thoughtful and balanced response, and not a dismissive one.”
He also says that over-regulation will do more harm than good and will curb innovation. Further mentioning the early ages of the internet era when the US took responsibility for regulating it just right. Christopher Giancarlo also adds that he isn’t among the “crypto-evangelist” just to clarify.
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Image Credit- WSJ