An influx of institutional investors to the cryptocurrency markets may help the space "Mature," U.S. Commodity Futures Trading Commission chair J. Christopher Giancarlo said Friday.
The regulator discussed his agency's efforts to regulate the cryptocurrency space with Fox Business, noting that there has been an increase in movement into the space, which he stated would help grow and evolve the market.
"We're seeing more institutional movement into this area," he said.
"I think with more institutional movement we should see more maturation of."
"We've still got a long way to go, there's a lot of issues in some of these spot exchanges, a lack of transparency, a lot of conflict of interest, a lack of systems and systems safeguards, and that's a concern. But you know, like all things, it takes time to mature, and with the movement of more institutional investors into the space, I think we'll see that [maturation]."
Giancarlo also discussed his agency's efforts to regulate the cryptocurrency derivatives markets, saying the CFTC has been taking a "Two-handed approach."
These legal victories came in the last few months, with two separate federal judges ruling that the agency has the power to enforce the Commodity Exchange Act against individuals or entities potentially committing fraud using cryptocurrencies.
Last month, a judge ruled that for the purposes of the Act, the CFTC could bring a case against My Big Coin and its founders.
That ruling came a few weeks after another judge ruled in the CFTC's favor as part of a separate lawsuit against CabbageTech, a company the CFTC claimed had defrauded investors by selling crypto trading advice which never materialized.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
CFTC Chair Giancarlo Says Institutional Investors Will Help Crypto 'Mature'
Published on Oct 12, 2018
by Coindesk | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.