According to the CFTC chairman, Rostin Behman, proper crypto regulation is the only way to broaden crypto adoption worldwide legally.
The crypto industry is being forced to become mainstream finance under the pressure of regulations. Crypto regulation aims to bring more transparency to the crypto world and broaden the adoption legally in a country. However, it often attracts strict rules which fade away the interest of investors and the crypto community from the industry. Some analysts and regulators believe that framing a crypto regulatory infrastructure will eventually benefit the industry by bringing more opportunities and eliminating the risks, particularly for the Bitcoin market.
CFTC And SEC Must Join Hands
In an interview at the New York University School of Law, Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), mentioned that proper regulation of the crypto world could significantly have a positive impact on its upward growth, specifically for Bitcoin. Behnam said, “Growth might occur if we have a well-regulated space.”
He added, “Bitcoin might double in price if there’s a CFTC-regulated market,” which gradually became a headline worldwide. Behnam’s comments are not new, as he previously made several comments about the need for regulatory clarity in the Bitcoin market. Earlier this year, officials of the Senate Agriculture Committee, which work closely with the CFTC, proposed a new bill where the CFTC would become the primary regulator of the crypto industry and implement crypto laws to strengthen its dominance over cryptocurrency spot markets. According to the bill, crypto trading companies are required to register themselves with the CFTC. Behnam stretched his support for the bipartisan bill, allowing the CFTC to take penalties and charge fees on regulatory entities if the law is violated.
During the NYU School of Law event, Behnam said, “We are [currently] appropriated money by Congress, and it has put us in a position where we feel like we’re constantly on edge about how much money we will be appropriated. We are still feeling the wounds and scars from about five or six years of flat funding.”
Behnam mentioned that the module of digital assets is decentralized, which stops investigating agencies from combating crimes and frauds that occur in the crypto space. If CFTC gets jurisdiction over crypto, it can eliminate the risks and frauds. These comments from Behnam appear after a month when the former CFTC chairman, Timothy Massad, proposed CFTC and the U.S. Securities and Exchange Commission (SEC) join together and map out the current gaps between the traditional finance and crypto sphere by developing a self-regulatory organization (SRO).
Regulations Come, Bitcoin Goes Up!
A wealthy Canadian investor, Kevin O’Leary, is also bullish on the regulatory clarity in the crypto space and believes that it can uplift the adoption of the industry. Kevin said, “Even though it has nothing to do with Bitcoin, that will be the first regulation passed by US regulators, and I would argue you want to be long Bitcoin going into that outcome. You’re going to see a lot of interest in institutional capital coming into stablecoins. So, end of the day, regulations come, Bitcoin goes up.”
However, some analysts believe that implementing regulations on crypto might hurt some of the crypto giants in the U.S., including Coinbase. Wells Fargo analysts initiated a study and said, “Regulation in particular will be a challenge for COIN, for example, note the recent discussion coming from the SEC about ‘cryptos as securities’ (e.g., for staked assets).”
In summary, it is concluded that pushing Bitcoin under the supervision of the CFTC could solve the entire security discussions. It is anticipated that increased transparency and visibility could establish a road to gather more institutional players who were worried about the crypto-related risks and waiting for regulations on digital assets, resulting in more exposure to Bitcoin.