Crypto fanatics have lots of opinions on regulation, and few of them are good. Regulations likely will mean less anonymity, less financial freedom, more reporting requirements and lots more red tape. But, one government official is trying to pitch these investors on a different possibility. Could regulation cause a price doubling for Bitcoin (BTC-USD)? Crypto news today sees the chairman of the Commodity Futures Trading Commission (CFTC) making a bold claim.
Since President Joe Biden greased the wheels of crypto regulation back in March with his executive order, there’s been new bills, arrests and hot takes coming out of Washington just about every day. One of the biggest threads in this process is in whether lawmakers will give power to the U.S. Securities and Exchange Commission or the CFTC when all is said and done.
One of the most popular bills among crypto fans is that of Sen. Cynthia Lummis. Her bipartisan bill would give most responsibility to the CFTC when it comes to crypto, rather than the SEC. This is because the bill argues that most cryptos are “much more similar to commodities than securities.”
This is seen as a best-case scenario for crypto fanatics. After all, the SEC has not always been kind to the crypto industry. It has engaged in hefty legal battles with multiple different projects it accuses of conducting unregistered securities offerings. The most recent of these comes today, as the agency takes on Hydrogen Technology for a token sale it conducted four years ago.
On the other hand, the CFTC has been gentler with the market. And as one official says, regulations led by the CFTC could mean big gains for top projects.
Crypto News: CFTC Chair Argues Regulations Will Bring Gains
The government agency is making the bold claim that, given the task of regulating cryptocurrency, the market could see major growth under its control.
Rostin Behnam, chairman of the CFTC, gave a talk at the NYU School of Law Wednesday evening. The talk touched on various needs for cryptocurrency regulations going forward, but there was one remark investors are latching onto today.
“Growth might occur if we have a well-regulated space,” he told attendees. “Bitcoin might double in price if there’s a CFTC-regulated market.”
The claim is bold, since many investors see any regulations at all as a downside for crypto. But, it’s not implausible.
Already, the CFTC is looking to implement an Office of the Retail Advocate, built specifically to protect retail traders. Commissioner Caroline Pham proposed the office in the midst of her crypto “learning tour” she has been documenting on Twitter. Indeed, the CFTC has made clear that it is taking a very careful and learned approach to regulations.
Rounding out his remarks at NYU, Behnam reiterated an idea shared across most government bodies. That is that institutions will only pour into the market once there is regulatory clarity in the space. Given proper jurisdiction, Behnam argues that the CFTC can open the floodgates in terms of how much it can do to regulate companies that it currently can’t properly surveil.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.