Cryptocurrency Regulation Should “Do No Harm” According to US Regulator

Cryptocurrency Regulation Should “Do No Harm” According to US Regulator

In an interview at the annual Singapore Summit, Chairman of the American Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo said that:

“When it comes to monitoring cryptocurrencies, controls need to help in the prevention of innovation, yet be cautious against manipulation.”
(J. Christopher Giancarlo)

From our perspective, the Internet succeeded one reason because the government was not very heavy from its regulatory perspective, Especially in their nascent stages Instead, it took a simple “do-no-loss” approach.

They recommended that CFTC – which is held for crypto regulation in the United States, where cryptocurrencies are classified as objects – the same approach should be taken for cryptocurrencies.

Nevertheless, Giancarlo himself recognized that the challenge for this approach is the risk of corruption and fraud, which is prevalent in the crypto community. Thus, they emphasized the importance of being “slow and well informed” while making regulatory policies for cryptocurrencies.

Giancarlo is a strong believer in the possibility of cryptocurrencies. In a written statement to the US Senate Banking Committee, he highlighted the power of Blockchain:

“Increase in economic efficiency, reduce centralized systemic risk, defend against fraudulent activity and improve data quality and governance.”
(J. Christopher Giancarlo)

It appears that this is the promise of this border technology which encourages him to take a less aggressive approach to his regulation, which provides an important place for innovation and creativity. Attorney of the “Do-No-Harm” approach cites New York ‘Buttalenses’ unsuccessful, who eventually led the state to find crypto talent with figures of less regulatory friction.

It should be convinced for those who worry that more regulation can prevent cryptocurrency technologies from reaching their full potential.

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