J. Christopher Giancarlo, chairman of the US Commodity Futures Trading Commission (CFTC), spoke before the US House Agriculture Committee on Wednesday, where he proclaimed there will be an explosion of interest in cryptocurrencies.
According to Giancarlo’s testimony:
“In addition to U.S. clearinghouses, the Commission has six registered clearinghouses located overseas and exempted four foreign clearinghouses. The Commission anticipates new applications for clearinghouse registration resulting from the explosion of interest in cryptocurrencies; an area in which protection of the cryptocurrencies will be one of the highest risks.”
The US Needs to Prepare More Clearinghouses
According to Giancarlo, the US will receive an influx of new applications for clearinghouse registrations due to an ever-increasing demand for cryptocurrencies.
Therefore, he is urging the Commission to better prepare for proper examinations of these clearinghouses, because they will be the area in which consumers need the most protection, as they present a great deal of risk due to their central role in transacting and storing crypto.
Clearinghouses are financial institutions that facilitate transactions between 2 parties (such as a cryptocurrency exchange). The CFTC is responsible for routinely monitoring and examining their operations to ensure they are lawful and have the consumers’ best interest is in mind.
Unfortunately, Giancarlo, who has been a positive proponent for the cryptocurrency space, will be leaving the CFTC when his term ends this year. That is why he is getting his message out now and urging the CFTC to be prepared.
Do you think the CFTC will take what Giancarlo has said into consideration? When Giancarlo leaves the Commission, will another chairman step up to support the crypto industry as he did? Let us know what you think in the comment section below.
