Ex-Chairman believes that CFTC should regulate crypto, not other agencies

During an interview with Yahoo Finance, the former chairman of the Commodity Futures Trading Commission or CFTC, J. Christopher Giancarlo, said that CFTC should supervise the crypto market rather than the U.S. Securities and Exchanges Commission (SEC) or the U.S. Treasury.

As the discussion over digital token monitoring heats up and the White House formulates a long-term policy, J. Christopher Giancarlo says it’s time for Congress to take the initiative and allow his former agency to regulate the asset class. The FBI and the Department of Justice have joined an inter-agency collaboration that includes the SEC and Treasury.

However, appointing the CFTC as the primary regulator would make it easier for institutions to participate in retail markets, “because those markets would have a well-established federal regulator overseeing those markets, and looking after things like consumer protection, adequate funding, and protections against fraud and manipulation of those markets,” according to Giancarlo.

The ex-regulator also advised that a self-regulatory organization (SRO) should oversee the industry, along with an update to how crypto assets are classed as financial instruments.

Prediction of no “comprehensive crypto bill” this year

Meanwhile, the SEC has been ramping up enforcement actions in an effort to safeguard investors before an executive order from the Biden administration.

Gary Gensler, the chairman of the Securities and Exchange Commission, has pushed lawmakers to introduce legislation in public speeches. However, formal legislation is unlikely to be introduced this year.

While Giancarlo anticipates “a lot of proposals to flow in 2022,” he doesn’t see Congressional consensus for a “comprehensive crypto bill” passing this year, owing to the upcoming midterm elections.

The impasse over crypto regulation, according to Giancarlo, is contributing to the market’s volatility. Many institutions, including insurance companies, pension funds, and hedge funds, are unwilling to engage in the asset class because of the lack of regulatory clarity, according to Giancarlo.