Globally, the crypto sector has expanded at a tremendous rate. Even top regulatory and monetary institution officials are beginning to explore the sector.
This includes the US CFTC (Commodity Futures Trading Commission). On July 25th, the chairman of CFTC, Rostin Benham, discussed the high interest of US citizens in crypto assets.
Crypto Might Become A Huge Part Of Financial Portfolios In The US
Benham made this statement while speaking at the Future of Crypto Regulation event. According to the chairman, BTC and ETH might become part of conventional financial portfolios in the country.
In the same way, people have portfolios for stocks and bonds, Americans will begin to add cryptocurrencies to that portfolio. He stated that:
“We are discussing crypto assets today because of its high usage. Crypto is gradually becoming a huge part of the portfolios of Americans. According to survey, one out of every five adult has used crypto or invested in crypto.”
Additionally, Benham mentioned the massive number of users entering the crypto industry. Meanwhile, the CFTC boss believes it is high time a regulatory framework is implemented.
This is due to the increased usage of crypto and the latest crypto winter. However, the chairman believes the regulation should be technology-neutral. Also, policymakers must tailor the guidelines to follow the risks in the crypto sector.
Furthermore, Benham believes the CFTC is ready and properly equipped to regulate the crypto sector. Also, he agreed that the agency had been less public about its operations in the crypto space.
The CFTC And The Crypto Sector
The chairman stated that the agency has grown with the crypto sector. Hence, Benham said the commission would take a comprehensive and proactive approach to regulating the sector.
In this light, the agency plans to modify its LabCFTC project to suit the nature of the crypto market. Christopher Giancarlo, ex-chairman of the agency, had established the project.
Hence, the LabCFTC project will now become the OTI (Office of Technology Innovation). This would allow it to engage with financial tech firms and the crypto industry.
Although the CFTC has not been very vocal against crypto like the SEC, the official is not so enthusiastic about cryptocurrency. In May, the commissioner of the CFTC, Caroline Pham, issued a warning to investors.
Pham told investors to see digital currencies as lottery tickets. Additionally, the commissioner argued that cryptocurrency projects do not have proper customer disclosure.
As a result, investors tend to believe they are a quick and easy way to get rich. Also, last month, another commissioner warned of the correlation of the crypto market with the banking industry.
The commissioner, Christy Goldsmith Romero, therefore advised policymakers to regulate the sector quickly.