Speaking on the EU-US regulatory cooperation for derivatives markets, at the Eurofi Financial Forum in Bucharest, Romania on Thursday, Apr. 4th 2019, J. Christopher Giancarlo, Chairman, United States Commodity Futures Trading Commission (CFTC), stated that the agency is there to monitor the development of the crypto asset sector and not to impede.
The chairman expressed the agency’s cooperation and support of international efforts on reviewing the G20 derivatives reform and ensuring derivative markets enhancement, rather than stifling. On a further note, Giancarlo said that the CFTC is committed to simplifying its own drafted rules and regulations, making them simpler, less cumbersome, and less costly for market participants.
Speaking on this context, Giancarlo, isolating the agency’s positive approach to new derivative market products for crypto assets and other emerging technologies, said that:
“We have resisted calls to use our legal powers to suppress the development of crypto-assets. […] Instead, we have favored close monitoring of market developments while not hindering the introduction of new products like bitcoin futures, which have proven invaluable in letting market forces determine the appropriate value of the bitcoin.”
In reference to his earlier claims, Giancarlo referenced a May 2018 research paper from the Federal Reserve Bank of San Francisco, where the paper had argued the Bitcoin (BTC) futures trading launch on two major exchanges, the Chicago Mercantile Exchange and the Chicago Board Options Exchange, as something that had significantly impacted the crypto derivatives market, deepening it further, offsetting the one-sided speculative demand and allowing a much more balanced inflated valuations correction.