By CCN: J. Christopher Giancarlo, Chairman of the US Commodity Futures Trading Commission (CFTC), is preparing to step aside after five years on the job. The regulator, lovingly nicknamed “Crypto Dad,” penned a heartfelt open letter to the blockchain world ahead of his exit from the agency.
The CFTC Has Always Been More Crypto-Friendly Than The SEC
The CFTC, which regulates commodities and futures, has adopted a more accommodative stance towards crypto than the more guarded SEC. Having approved the launch of bitcoin futures contracts at the Chicago Board Options Exchange (CBOE) and the CME Group in December 2017, it opened the doors for institutional exposure to digital currencies.
Although the CBOE decided to cease listing bitcoin futures beyond currently open contracts that run through to June, some pundits have claimed the lack of futures interest signaled the end of the bear market.
Meanwhile… Over at the SEC
The SEC has continually denied bitcoin ETF applications. Its signature stamp of disapproval came last July, when it ditched nine proposals in one fell swoop. Despite the dissenting voice of Crypto Mom, Hester M. Peirce, the Jay Clayton-led Securities and Exchange Commission has proven a bigger hurdle for crypto’s mainstreamification.
At the heart of the SEC’s concern is the size of the market (too small) and the level of manipulation (too much). Though many suggest ETFs are a matter of if, and not when, the SEC’s approach to the community has been anything but reassuring.
Then There Was Crypto Dad
Christopher Giancarlo is affectionately known as Crypto Dad. In his farewell letter to the crypto community, he outlined some of his views about crypto and the role the CFTC should play in it. He argues that a regulator cannot be effective without keeping abreast of technological change: