Altcoins

Brian Kelly Expects Regulatory Clarity after Ethereum being Classified as Commodity

Brian Kelly, the CEO of the crypto investment firm BKCM and CNBC’s analyst recently gave his comments on CFTC’s decision on classifying Ethereum as a commodity rather than a security. The decision alone might prove a big step ahead for the crypto space according to Brian. He stated:

The CFTC saying that Ethereum is a commodity is huge for the space. It gives us regulatory clarity. That opens the door for institutions to come in. Everybody is concerned, what if they ban it? The CFTC said ‘we’re not banning it yet, we’re gonna regulate it,’ and now investors can say ‘Put them in my commodity bucket.’

These comments from Brian come after CFTC’s chairman Heath Tarbert clarified his opinions regarding ether. Putting ether under commodities put it under the jurisdiction of CFTC, who are keen to bring ether futures to the US market. Even the SEC has acknowledged bitcoin and ether as commodities instead of securities. Which opens doors for regulatory clarity now. This might end the endless debate of whether bitcoin acts as gold or currency.

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Even CFTC’s former chairman Christopher Giancarlo stated that the time for action has come for the regulatory authorities to do more than just being aware of the crypto space and bring about regulations for it to grow. He stated:

I would say 2019 is the year in which there’s a growing recognition that regulators and policy makers need to do more than just be aware of these, but may actually need to look at some policy responses.

The new wave of big crypto startups like Libra and TON moving into this space might also pressurize the regulators into thinking about how crypto might proceed. Giancarlo also stated that digital currencies should be introduced in the financial systems that help the systems instead of disrupting them. According to him, “..the dollar’s status as the world’s primary reserve currency should be enhanced with a digital component and done in a way that doesn’t have to disintermediate the traditional banking system but can be done so traditional finance financial intermediaries can play a role in a digital component to the dollar.”

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These regulations and integration with the banking systems would be the actual boost for crypto growth. Brian Kelly is also of the view that regulations are what crypto requires right now. Instead of looking for other tools like ETFs for crypto growth, regulations should be deemed necessary. ETFs were important before it was difficult to access bitcoin, but since Fidelity Investments and TD Ameritrade are showing interest in the space, these currencies would be soon available on regular brokerage accounts. Although for a long time now, ETFs have been the hottest topic for crypto as the stimulation of growth was indirectly dependent on it as It would’ve triggered adoption as investment opportunities by bringing in institutional and retail investments, but according to Brian Kelly, brokerage firms might break that concept and turn it obsolete. Bringing ETFs would help bring institutional investments, but normalizing it through regulations first might be the right move to make.

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Shehryar Hasan

Performing artist, guitarist and sub-editor at BlockPublisher. Shehryar is an electrical engineer and blockchain enthusiast. He holds investments in bitcoin, ethereum, OST, TRX and Ripple. Email: shehryar@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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