CFTC Chairman Giancarlo Gave a Bullish Statement About Bitcoin in the Congress

By Michelle Price and Pete Schroeder

By Michelle Price and Pete Schroeder

CFTC chairman, Mr. Christopher Giancarlo also said that we need to have a measured approach while dealing with cryptocurrencies and digital currencies can not be completely ignored or snubbed off.

EXCLUSIVE -The chairs of Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), John Clayton and J. Christopher Giancarlo respectively testified before the Senate Banking Committee yesterday on their regulatory ideas and concerns on cryptocurrency. The crypto-currency has fallen from a high of almost $20,000 in December to around $6,500 today, making its market cap almost a third of what it was just two months ago.

Both the agencies that sat before Congress today have taken aim at businesses in specific incidents: The SEC has halted some initial coin offerings; the CFTC charged My Big Coin and its principals with fraud last month.

With major banks blocking customers from buying Bitcoin with credit cards and governments cracking down on cryptocurrencies, a Senate hearing on the topic Tuesday was a surprising respite for HODLers (hold on for dear lifers).

Clayton also appreciated Facebook's latest stand to ban crypto or ICO ads on its platform by saying: "I do want to recognize that recently social media platforms have restricted the ability of users to promote ICOs and cryptocurrencies on their platforms".

Clayton said most appeared to be securities and that put them in the agency's "crosshairs". Previously, Clayton had only said that some ICOs functioned as securities. Some say that this is because the law is not clear.

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Clayton categorized that ecosystem into three sections: technology (distributed ledger technology and blockchain); cryptocurrency, which he described as "replacement for dollars", and ICOs, which he likened to stock offerings. The SEC has taken regulatory action against ICOs it believes are actually securities, however, his comments Tuesday suggest regulators will ramp up enforcement.

But careful not to come off as a crack down on the cryptocurrency market in general, the Trump appointed Securities and Exchange Commission Chairman Jay Clayton added "These warnings are not an effort to undermine the fostering of innovation through our capital markets - America was built on the ingenuity, vision and spirit of entrepreneurs who tackled old and new problems in new, innovative ways".

Clayton and Giancarlo talked in their testimonies about what can be regulated, what should be regulated and what would be the appropriate regulatory approach to digital currencies.

The pair also talked about the unregulated nature of cryptocurrency exchanges and called for an interagency coordinated plan among states, federal regulators and the SEC and the CFTC to address a common misconception among investors that these types of platforms are regulated. If we get comfortable with those rules, we can move forward.”.

Senator Mike Crapo, the Republican chairman of the panel, and Democratic Senator Sherrod Brown were among the lawmakers to express worries about volatility, investor protections and the risks posed by cyber criminals in the virtual currency market.

The heads of both the top financial institutions shared a common opinion regarding the potential of Bitcoin underlying Blockchain technology.

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