Speaking to Bloomberg, the former Chairman of the US Commodity Futures Trading Commission (CFTC) Gary Gensler alludes that Cryptocurrency markets need regulatory oversight as a measure of protecting investors. Further, Gary believes that Blockchain technology has a lot of untapped potentials that can be harnessed for the benefits of the global economy.
Gary Gensler served as the CFTC 11th Chairman between April 2009 and January 2014. At that time, Cryptocurrencies and Blockchain platforms were largely ignored by regulators a phenomenon that has since changed.
Gary adds that regulation is vital as Cryptocurrencies and Blockchain technology platform are positioning themselves for the expected widespread adoption. In this regard, the futuristic technologies should be under regulations that are intertwined with public policies.
Illegal Activities Are The Biggest Threat To Cryptocurrency Investors
In his one-on-one with Bloomberg, Gary revealed that he believes that the predominant causal factor for low investor participation in Crypto markets is due to illegal activities. Examples of which include, fraudulent ICOs, untruthful Whitepapers for Blockchain projects, undue diligence from Blockchain developers in designing secure platforms with secure wallets that expose investors to Crypto wallet security breaches, etc. Regulatory policies that address these concerns and much more are vital in restoring and increasing market confidence and investor participation.
Cryptocurrency Exchanges Should Be The Focal Point Of Regulators
Crypto exchanges tend to fall prey to security breaches due to their architectures that often incorporate individual wallets of a centralized wallet that hold Digital Assets. Gary believes that if there are concrete regulation policies to govern these entities, the Crypto market may enter into a bull run as these are the points or platforms where individuals can be able to acquire Tokens with ease. Hence, the better the Platforms, the more the investor interests and activities, and Coin prices.
Blockchain Technology Is Taking Over The World
Gary Gensler also added that Blockchain technology should be under regulation. However, he pointed out that only specific features of these platforms should be subjects to policies in relation to their risk exposure to manipulation and fraud. He believes that if this is done, Blockchain technology will be a catalyst for the world of finance. Giving a scenario of the interest on DLT, he says that his Blockchain class in MIT was always packed to capacity an indication of massive public interest.
Nonetheless, Blockchain is yet to fully realize its potential as its adoption is very low. Gary believes that this technology has a 5 to 10 years’ timeframe before it is truly felt in the world. He compares it to the internet in the early 1990s. The best bet for speedy adoption remains public awareness to spur adoption.
CFTC Or SEC?
There are two regulatory bodies that are tasked with enacting policies to govern the use of Cryptocurrencies and Blockchain platforms-The US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). He thinks that the two should be involved but he believes that the CFTC has skills and competencies to achieve the best regulation results.