CFTC Commissioner: Cryptocurrencies will become part of the economy

A bright future, widespread use, saving the economies of many countries, getting rid of corruption and poverty - such bright prospects were unexpectedly voiced by Commodity Futures Trading Commission (CFTC) Commissioner Rostin Behnam in his emotional report.

His presentation in general, and his vision of the value of blockchain technology and digital currencies in particular, is fundamentally different from the official position of US regulatory authorities.

The content of the report was consistent with its long title, “Promoting an open, transparent, competitive and financially sound market.” During his speech, Behnam not only spoke about the agency’s position regarding the crypto industry, but also admitted that the current policy of regulators is erroneous, and the risks of fraud and criminal use of cryptocurrencies are overestimated. The current policy of regulators is not effective and requires adjustment. Excesses regarding digital currency that has no borders, political overtones and centralized control are unfortunately not uncommon. On the other hand, the commissioner noted that only now are real debates about the crypto-industry beginning, when the understanding has come that: “we are standing on the threshold of a new economic miracle, which now cannot be prohibited by any mechanisms of influence.” Cryptoassets have entered the economies of many countries seriously and for a long time, and this cannot be corrected. Moreover, soon “cryptocurrencies will come out of the influence of traditional financial intermediaries - world governments, banks, investors, international companies, etc.”

Although the commissioner and his colleagues believe that blockchain technology and digital assets can save society from many problems in the future, we should not forget, in his opinion, about hidden threats. Like any financial asset, cryptocurrency can be used by a kleptocracy to accumulate huge amounts of money at the expense of its citizens, and much more easily than in dollars or euros.

Earlier, at the beginning of the year, CFTC Chairman Christopher Giancarlo already made a similar, but more restrained statement. In a written address to the US Senate Committee on Banking Supervision, the chairman compared the development of the crypto industry with the period of the spread of the Internet. Back then, the “do no harm” policy was the best choice. The same balanced policy for regulating the young cryptocurrency market, in his opinion, can now lead to a new digital era for financial markets and changes in traditional financial processes.