The former Chairman of the United States Commodity Futures Trading Commission (CFTC) Christopher Giancarlo has weighed in on the much talked about crackdown on Coinbase Exchange by the Securities and Exchange Commission (SEC).
Giancarlo Agrees on SEC’s Crackdown Being Boring
Giancarlo echoed insights from crypto advocate, Jim Harper who noted that while the enforcement action of the market regulator is important, the approach is ‘boring’. In buttressing this stance, Harper highlighted how old Bitcoiners do not necessarily need an exchange in the long term especially when transactional opportunities are factored into the utilities for which they are holding the asset.
As a former CFTC Chairman, Giancarlo has always been pro-crypto innovation and his advocacy post-office has earned him the moniker ‘Crypto Dad’.
While not commenting directly on whether the SEC will come out triumphant in the lawsuits it is filing against these exchanges it is going after, the belief is that the crackdown, if successful, will only change the timeline for which ‘blockchain and cryptocurrency dominate the administration of value’.
The odds of the SEC succeeding against Coinbase and Binance is currently up for debate in the community with many experts believing the regulator’s crackdown is an overstep to its regulatory powers. The platforms are willing to defend their claims in court, trailing after Ripple Labs Inc which has been battling the SEC for more than 2 and a half years.
Pursuit of Regulatory Clarity
The United States is judged to be behind its contemporaries when it comes to the issuance of regulatory clarity to guide the emerging industry. Industry leaders have requested for a separate or customized guideline for the industry in a bid to help foster innovation that can drive growth across the board.
Some members of the US Congress have recognized this deep demand for regulatory clarity and are already making targeted moves through the attempt to first restructure the SEC under Gary Gensler.
The digital currency ecosystem has come of age with a combined market capitalization of about $1.1 trillion. Experts have argued that a positive regulatory system remains the catalyst to propel the market forward.
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