SEC and CFTC has Favorable Report Regarding Bitcoin and Cryptos. Boom is Coming!
The department heads of the CFTC (Commodity Futures Trading Commission) and the SEC (Securities Exchange Commission) had positive statements today regarding distributed ledger technology (DLT). The DLT encompasses Bitcoin, Alt coins, ICO offerings and utility tokens.
J. CHRISTOPHER GIANCARLO CHAIRMAN, COMMODITY FUTURES TRADING COMMISSION stated " I would like to note that this hearing is timely, even fortuitous. Emerging financial technologies broadly are taking us into a new chapter of economic history. They are impacting trading, markets and the entire financial landscape with far ranging implications for capital formation and risk transfer. They include machine learning and artificial intelligence, algorithm-based trading, data analytics, “smart” contracts valuing themselves and calculating payments in realtime, and distributed ledger technologies, which over time may come to challenge traditional market infrastructure. They are transforming the world around us, and it is no surprise that these technologies are having an equally transformative impact on US capital and derivatives markets."
Yes, indeed, crypto currencies/tokens are taking us into a "new chapter of economic history". Fin Tech, with its blockchain technology, is already challenging the traditional market infrastructure. Take a look at how much funding ICOs raised in 2017, just over $6 Billion Dollars. Governments know that Fiat currencies can not last forever. A new financial system needs to be established on a world wide basis. The new system needs to restore peoples confidence and institute honest money once again.
Mr. Giancarlo further stated "The mission of the CFTC is to foster open, transparent, competitive, and financially sound derivatives markets. By working to avoid systemic risk, the Commission aims to protect market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act (CEA)." The commissions want the crypto industry to be properly regulated and prosper as the replacement of the old monetary system that we have now.
Jay Clayton Chairman, U.S. Securities and Exchange Commission made the following statement regarding crypto currencies and the ICO market by saying "The cryptocurrency and ICO markets, while new, have grown rapidly, gained greater prominence in the public conscience and attracted significant capital from retail investors. We have seen historical instances where such a rush into certain investments has benefitted our economy and those investors who backed the right ventures. But when our laws are not followed, the risks to all investors are high and numerous – including risks caused by or related to poor, incorrect or non-existent disclosure, volatility, manipulation, fraud and theft.
To be clear, I am very optimistic that developments in financial technology will help facilitate capital formation, providing promising investment opportunities for institutional and Main Street investors alike. From a financial regulatory perspective, these developments may enable us to better monitor transactions, holdings and obligations (including credit exposures) and other activities and characteristics of our markets, thereby facilitating our regulatory mission, including, importantly, investor protection.
At the same time, regardless of the promise of this technology, those who invest their hard-earned money in opportunities that fall within the scope of the federal securities laws deserve the full protections afforded under those laws. This ever-present need comes into focus when enthusiasm for obtaining a profitable piece of a new technology “before it’s too late” is strong and broad. Fraudsters and other bad actors prey on this enthusiasm." Mr. Clayton made clear and concise statements showing the benefits of this new Fin Tech industry. He gave the reason for needed regulation and oversight to prevent fraud and protect investors. This is what they should be doing. This is good news.
The meeting today on Capital Hill was a huge GREEN light for the crypto industry. The Commissioners want the industry to thrive and be safe from fraud and corruption. This is good news for the general public. This is also a witness to the rest of the world that the U.S. Government is on board with crypto currencies/tokens as long as proper oversight is established and followed.
image from: cftclaw.com