CFTC Chair: Cryptocurrencies are different from other products we are familiar with

nRunaway Comment: As bitcoin moves farther and farther into the mainstream, regulators have paid increasing attention to its development. The U.S. Commodity Futures Trading Commission and the chairman of the Securities and Exchange Commission recently issued a statement reminding investors that there is still a need to pay attention to the risks in the cryptocurrency market. The CFTC Chairman emphasized that such new things will pose a challenge to regulators and said inter-agency cooperation is under way in the government and hopes to deal effectively with the issues.n
nTranslation: Inan
The chairman of the Commodity Futures Trading Commission (CFTC) said cryptocurrency is a special challenge for the agency.n
CFTC Chairman J. Christopher Giancarlo commented on the cryptocurrency and ICO risks in a statement issued on December 11.n
Meanwhile, Jay Clayton, chairman of the Securities and Exchange Commission, commented on cryptocurrencies after the SEC stopped an ICO project.n
Giancarlo praised the SEC for encouraging market participants and investors to “recognize the risks and legal liabilities for engaging in cryptocurrencies and ICO activities.”n
He also pointed out:n
n”I’ve always stressed that the virtual currency is different from anything that the CFTC has come into contact with in the past and I know they will also challenge the SEC.”n
nNotably, Giancarlo added that the CFTC and the SEC are “regular communications” on digital currencies and ICOs, highlighting the inter-agency collaboration within the US government on cryptocurrency.n
Giancarlo further noted that the CFTC can not effectively regulate cryptocurrencies because “the Bitcoin markets and exchanges are relatively new and largely unregulated, outside the CFTC’s jurisdiction.”n
He finally warned investors that they should “be aware of the potential for significant swings and serious risks in these markets.”n
Clayton said in a statement on the 11th that the SEC will examine the impact of any asset on the U.S. securities market, including cryptocurrencies that qualify as securities.n

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