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Regardless of certain intricacies surrounding the recently suggested crypto market framework legislation, a more distinct perspective is beginning to emerge concerning crypto market regulation, as noted by ProCap BTC chief investment officer Jeff Park.
“The CFTC will possess a more extensive authority over crypto than the SEC,” Park asserted during a discussion with crypto entrepreneur Anthony Pompliano published on YouTube on Friday, while stressing that there remains “considerable complexity involving various stakeholders.”
“In my view, that appears to be generally accurate,” he remarked. “The CFTC is engaged in the field of financial innovation broadly, and it operates in the domain of managing capital efficiency, leverage, and derivative products,” he detailed, clarifying that this corresponds with what the crypto sector is developing—a new settlement mechanism that introduces capital efficiency at varied velocities.
Jeff Park states it simply “makes sense”
Park further indicated that recognizing crypto as a commodity aligns with the market’s global character.
“It is logical for the CFTC to be the regulatory body capable of evaluating the broader realm of international commodities markets and formulating regulations,” he stated.
This perspective has been echoed throughout the crypto sector, particularly as the SEC, under the Biden administration, was largely perceived as adopting a “regulation-through-enforcement” strategy regarding the US crypto market.
“The US remains a highly onshore regulator for investment securities that Americans typically access, unless one engages with alternative private fund models,” Park added.
This follows the proposal by two US senators, Republican Agriculture Chair John Boozman and Democrat Senator Cory Booker, both introduced a discussion draft of crypto market framework laws on Monday.
Jeff Park believes it will “facilitate more forms of innovation”
Boozman remarked, “The CFTC is the appropriate agency to oversee spot digital commodity trading, and it is vital to create clear regulations for the developing crypto market while ensuring consumer protection.”
Park emphasized that the clarity will enable greater varieties of innovations to emerge within the sector such as DeFi protocols.
Related: UK central bank remains ‘disproportionately cautious’ about stablecoins
There has been increasing speculation concerning who will assume long-term leadership at the CFTC.
Michael Selig, who is currently serving as chief legal advisor for the crypto task force at the US SEC, is expected to face inquiries from senators next week in a hearing to evaluate his nomination as chair of the CFTC.
Since September, CFTC acting Chair Caroline Pham has been the only commissioner at the agency.
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