CFTC Chair Suggests That Cryptos Need More Control Than Other Commodities.
Gary Gensler gave his views on cryptocurrency control during the recent Bloomberg interview. He previously served as the chairperson of Commodity Features Commission for a period of five years.
Reasons For Regulating
Gensler was questioned about the legitimacy of blockchain technology by the public. The expert responded by informing them that it portends to bring tremendous changes in the field of finance. The lecturer further informed the masses about the importance of embracing blockchain technology. The main purpose is to increase the safety of cryptocurrency transactions.
Many individuals inquired of him how the technology should be regulated to eliminate the challenges facing the industry. He suggested that the government should develop public guidelines which explain how business should be conducted in this market. Additionally, he emphasized the importance of safeguarding investors from fraud. He revealed that the biggest digital money exchanges must conform to CFTC or SEC requirements. Gensler also sensitized individuals and entities on the need to safeguard bitcoin. It is because the asset is exposed to many security threats than other commodities like wheat and corn. However, he declined to give his opinion on which organization should be monitoring market activities. He refused to give his view on the matter to avoid criticism from other market watchdogs.
Gensler mentioned the importance of not taking sides on technological issues. The primary intention is to promote invention while still advocating for control. In this case, there is no need to regulate the entirety of blockchain technology. However, it is essential to eliminate fraud in the industry in future. Such a step will significantly increase investor confidence in the market.
Organization’s Awareness About The Existence Of Fraud
The expert was asked if entities were aware of the widespread fraud in the industry. Secondly, many people wanted to know if it has adequate staff to regulate the industry. He responded that the issue of technology still remains a challenge. It is because technology keeps on changing as fraudsters invent new methods of hacking systems. He told the industry players not to give up on the issue. Instead, they should come up with protective measures to reduce fraud. The intervention will encourage many investors to participate in this business.
Gensler further dismissed the negative rumors about blockchain technology. He disclosed that digital money exchange is a reality and not propaganda. Therefore, potential shareholders should not fear to commit their funds to this market. The regulator only needs to increase safety measures and enhance the security of transactions to attract more investors. Shareholders should also be sensitive to security issues in this market.