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CFTC Commissioner: Regulated cryptocurrency market could attract institutional investors




CFTC Commissioner: Regulated cryptocurrency market could attract institutional investors
Source: Pixabay

In a recent interview with BlockTV, the commissioner of the Commodities Futures Trading Commission [CFTC], Dan Berkowitz, shed light on a host of different issues that will impact the entry of institutional investors into the cryptocurrency market.

Berkovitz started the conversation by claiming that he is not “anti-crypto or anti-blockchain”. He added that the CFTC has an active enforcement division of around 170 people responsible for catching the “bad guys” in the space, hence prioritizing investor protection.

On the regulation of blockchain technology, he stated that the “emerging” technology was still nascent in its use. The CFTC’s regulations are quite flexible and not “prescriptive”, added the commissioner.

He said:

“We can accommodate new technologies, but, without knowing exactly what technology is and how the blockchain will be used and what the purpose is. We don’t have a definitive set of rules…so it’s an interactive process.”

Berkovitz added that the cryptocurrency and blockchain world may “take some time to develop” as it’s still in an early phase. However, he affirmed that “in the short term there may be uses for cryptocurrencies” and that in the longer term, blockchain would enter the fray.

On the topic of blockchain technology, he stated:

“Something like blockchain, if it realizes its potential, can save a lot of costs. There’s a really reliable, immutable, record of these transactions that we can access and it’s got a great potential to simply a lot of record keeping.”

He added that the CFTC is firmly behind blockchain and cryptocurrencies, but is approaching the situation with caution so that the necessary regulation can be put in place on time.

Speaking on the constant clash between the crypto-industry and the regulatory authorities, Berkovitz stated that there was no “conflict” between the two. Investor confidence and trust are boosted if the industry is under a regulatory “umbrella”, he said. It is pertinent that the right balance between market integrity, investor protection, market innovation, and cost compliance exists. He added,

“We’re finding, recently, that a lot of participants in the market want to be regulated. They don’t the be unregulated and viewed as rogue and somehow outside the system.”

Bakkt and ErisX, two notable cryptocurrency projects that aim to bring publicly traded Bitcoin into the market are awaiting approval from the CFTC for their respective proposals. In light of the same, Berkovitz stated that the CFTC had “several” proposals which were currently under a “review process”. He said,

“We need to ensure that a crypto-product, just like any other product, that gets traded on our market, meets all our standards and we are engaged very actively in that process.”

Bakkt has been pushed from the early part of 2019 to sometime later in the year, as stated by Jeff Sprecher, the CEO of the Intercontinental Exchange in February. Berkovitz, without revealing too much of the approval, stated that the CFTC is working with ICE and that this approval is a ‘priority’ for the agency.

With the influx of institutional investors into the cryptocurrency space, the commissioner stated that regulatory compliance is a must. He added that with the technology pushing into the mainstream and cryptocurrencies slowly becoming an asset class like equities and commodities, institutions will enter and will demand a strong regulatory atmosphere. He added,

“There is a definite market need to have the regulation of markets these institutional investors will invest in.”

He predicted that if a regulated cryptocurrency atmosphere is created, several corporations will venture into virtual currencies and blockchain technology. Berkovitz claimed that there were no significant frauds or market manipulations in the cryptocurrency industry in comparison to any new industry operating an unfamiliar technology.

Contrastingly, the Chairman of the SEC, Jay Clayton, stated last week that the regulatory agency was unsure about approving a publicly-traded Bitcoin product due to the nature of market manipulation and volatility of cryptocurrencies.

He ended his interview by stating that irrespective of a “crypto-winter” or a “crypto-spring”, the CFTC will maintain its long-term perspective on cryptocurrency and blockchain technology and will apply their regulation accordingly.

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Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.

Bitcoin Cash

Bitcoin SV’s Craig Wright withdraws email evidence submitted to court as he could not verify date of email exchange





Bitcoin SV's Craig Wright withdraws email evidence submitted to court as he could not verify date of exchange
Source: Unsplash

Craig Wright, the self-proclaimed Satoshi Nakamoto, has been in the limelight for the past few days. Apart from the news surrounding a lawsuit over a defamation case, Wright also made headlines due to the news pertaining to the Dave Kleiman case.

Earlier this week, a Reddit user stated in a post that Wright “purposely” submitted a fake email as evidence to the court for the Kleiman -Wright lawsuit. The lawsuit alleges that Wright had stolen $1 million Bitcoin from Dave Kleiman after his death, and Wright was being sued for billions of dollars.

The Redditor had stated,

“Craig Wright’s fraud continues. Yesterday, he submitted into evidence an email he says was from Dave Kleiman to Uyen Nguyen asking her to be a director of his ‘bitcoin company’ in late 2012. It is provably fake. Craig didn’t realize that the email’s PGP signature includes a signing timestamp along with the ID of the key used as metadata.”

Source: Reddit

Source: Reddit

Apart from this, it was also pointed out that the spelling “Kleiman” was misspelled in the letter, as the from address spelled it “Klieman”. Now, according to a new court document, Wright has withdrawn this evidence by stating that he cannot verify the date of the email exchange.

The court letter said,

“Dr. Craig Wright respectfully notifies the Court that he withdraws Exhibit A to his Motion for Judgement on the Pleadings for Lack of Subject-Matter Jurisdiction […] Wright is not withdrawing the motion and maintains that this Court lacks subject-matter jurisdiction over this action”

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