Bitcoin price: BTC could double on one condition says US Government Agency Chairman

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.