Regulators on the Crypto Radar
Christopher Giancarlo, the former heavyweight at the Commodity Futures Trading Commission (CFTC), has a hunch that 2019 will be crucial for cryptocurrency regulations. During an insightful interview with a well-known industry news outlet, he expressed a growing realization among regulators and policymakers. This year, they might not just be passive observers but will actively explore policies surrounding digital currencies.
The Libra Effect
What’s fueling this renewed desire for action? Giancarlo points to two significant developments: the introduction of Facebook’s Libra and the rising interest in central bank digital currencies (CBDCs). These factors, he believes, will push regulators to get off the sidelines and engage more deeply in the cryptocurrency space.
Thoughts on Digital Currency
Giancarlo, in his characteristic blend of pragmatism and foresight, mentioned that it’s high time for a considered approach toward a digital dollar. His vision? A digital component added to the U.S. dollar that maintains the traditional banking ecosystem. He firmly believes this could not only bolster the dollar’s status as the world’s primary reserve currency but also ensure that financial intermediaries play a vital role in this digital evolution.
The Unlikely Role of the Federal Reserve
When it comes to the Federal Reserve’s involvement, Giancarlo is realistic. He doesn’t envision the Fed becoming a place where people can hold their digital dollars. Instead, he sees banks continuing this role but utilizing a common set of technological protocols to facilitate access to a digital format of the dollar.
Controversies in the Past
However, not everything is smooth sailing. Just weeks ago, reports surfaced hinting that while Giancarlo was in charge at the CFTC, he may have influenced the approval process for LedgerX’s amended Derivatives Clearing Organization registration due to personal biases. It seems that even in the realm of regulations, personal feelings can sometimes cast a long shadow.
What Lies Ahead?
The sentiment in 2019 appears poised to mark a turning point in how cryptocurrencies are viewed by regulators. As the landscape continues to evolve, it’s clear that we are at a crossroads. Will this be the year where crypto gets the respect it deserves—or will it be swept under more regulatory red tape? Only time will tell!
