- The Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said Bitcoin could double in price.
- Behnam believes regulatory certainty could enable non-bank institutions to thrive and power a Bitcoin price rally.
- While US regulator Securities and Exchange Commission is regulating cryptocurrencies through enforcement, the CFTC’s approach is groundbreaking.
The chairman of an independent agency of the US government, the CFTC believes Bitcoin price could soar in a regulated market where institutional investors feel comfortable wading through the industry. Bitcoin price nosedived below the $20,000 level, fueling a strong growth in trade volume.
Also read: Where Bitcoin, Ethereum prices are headed as correlation with S&P 500 declines
US Government Agency chair predicts Bitcoin could “double in price”
Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC), an independent agency believes that Bitcoin might “double in price” if it traded in a regulated market. The current crypto ecosystem is largely unregulated, the US Securities and Exchange Commission (SEC) has attempted to regulate cryptocurrencies through enforcement.
The crypto industry has faced scrutiny from regulators worldwide. Ripple, a global payments firm faced legal action from the US SEC on allegations of $1.2 billion unregistered securities sale. The regulator believes XRP is a security. USD Tether, a stablecoin has faced scrutiny from regulators on disclosures about its reserves. The State of New York had earlier forced Tether into providing more disclosures about its reserves and introduced guidance on stablecoin issuance.
Behnam said that the CFTC’s current funding model and resources prevented it from pursuing large-scale crypto regulation. This could help weed out unscrupulous actors through the CFTC’s investigations. A majority of cases pursued by the CFTC have relied on customer complaints, whistleblowers and tips. An increase in funding could help CFTC pursue investigations, and regulate cryptocurrencies.
Behnam told attendees during a fireside chat at NYU School of Law,
Growth might occur if we have a well-regulated space. Bitcoin might double in price if there’s a CFTC-regulated market.
Behnam expressed his support for a bill introduced by the Senate Agriculture Committee which would designate the CFTC as the main regulator of the crypto industry. Currently, the US SEC is regulating cryptocurrency firms, market-makers and institutions through enforcement.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum prices struggle after mixed US NFP data
BTC and ETH prices experienced a temporary pullback as crypto market participants reacted to the news of the US NFP data release for May. Similar to the situation in April, the number of Nonfarm Payrolls added far exceeded the market’s expectations.
Solana: A break above $26.30 would spell doom for bears
SOL price has been trading with a bullish bias after an explosive breakout on December 30. However, because of volatility and the gloom in the broader crypto market, SOL has been unable to break above a key hurdle at $26.30, causing the price to trade sideways.
Bitcoin Weekly Forecast: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.