Heath Tarbert, Chairman of the US Commodity Futures Trading Commission (CFTC), delivered a speech at the Digital LA Blockchain Summit, stating that US regulation lags behind cryptocurrency and blockchain.
On October 7, Tarbert said to Anthony Pompliano: “I am the first to agree with you that innovation is unlikely to come from the government.” This is part of the role of digital securities in the derivatives market. Tarbert explained that the private sector usually leads innovation, while regulators are responsible for overseeing these advances. He added:
“As a regulator, I think our own role is not so much self-innovation, as we want to innovate for the regulator, not necessarily for the society, but we must keep up with the pace of innovation.”
Since the birth of the cryptocurrency and blockchain industry about 11 years ago, generally speaking, the U.S. regulation has not been able to keep up with the pace of this fast-growing industry. Initial token issuance is an example, which has been emerging throughout 2017 . In response, the regulator strongly opposed this new funding method. As a result, the token sale has now almost disappeared.
According to the ranking of CoinMarketCap historical snapshots, Ripple’s XRP has been one of the top crypto assets since 2013. XRP encountered a lawsuit in early 2020, which claimed that XRP was a security. This ruling should have been clarified a few years ago.
Although regulation generally needs to catch up, many regulatory issues in the cryptocurrency field are related to the U.S. Securities and Exchange Commission (SEC).
Tarbert served as CFTC chairman in July 2019. After the market downturn in 2008 ended, Tarbert joined the ranks when the technology made great progress. Tarbert explained: “This is a good opportunity for us to re-examine our mission. The committee has formulated an updated mission statement.” Tarbert quoted the CFTC mission statement as saying that the CFTC hopes to promote the integrity of the US derivatives market through sound supervision. , Flexibility and vitality.
“Among them, vitality is the source of innovation. We don’t want our markets to stagnate. We want them to continue to develop and innovate.”
However, the current situation seems to run counter to this claimed desire for innovation. Because of concerns about the strict regulatory environment in the United States and many cryptocurrency exchanges prohibiting American investors from participating in transactions, American traders are still in a difficult period. The cryptocurrency derivatives exchange BitMEX is one of the latest examples of these related consequences.
