Although cryptocurrencies are booming on a scale never imagined before, their lack of acceptance among the general public and regulatory bodies still remains there. The official bodies are largely quite skeptical of digital currencies as of yet, but the mood is starting to change as more and more developments are being made in this arena. The chairman of U.S. Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo has suggested a ‘do-not-harm’ approach towards handling the erupting market of cryptocurrencies.
Thomas Power, one of blockchain’s world well-known personalities and board member of 9 Spokes, has praised the approach advocated by the CFTC chairman. He also termed the remark made by the chairman of CFTC about cryptos not going away and proliferating to every economy as “positive realistic and practical”.
Upon inquiry by BlockPublisher about whether he would suggest that the United States Securities and Exchange Commission (SEC) should follow the same ‘do-not-harm’ approach, Thomas stated:
Yes I would say as the market is flushing itself now.
The SEC, as we have seen, has not been very kind to the crypto world overall. As of yet, no proposal for a crypto-linked exchange traded fund (ETF) has been approved by the regulatory body owing to issues the valuation, liquidity, custody, arbitrage, potential manipulation and other risks that are linked with this market. Regarding the issue of manipulation, which is one of the major concerns raised by the SEC, the regulatory body has stated that:
The Commission has also discussed concerns relating to the risk of fraud and manipulation in cryptocurrency markets in orders denying exchange proposals to list the shares of commodity trusts that would hold cryptocurrency. In addition, a number of recent media reports have highlighted a range of possible vectors for potential manipulation of cryptocurrency markets. Although some funds may propose to hold cryptocurrency-related products, rather than cryptocurrencies, the pricing, volatility and resiliency of these derivative markets generally would be expected to be strongly influenced by the underlying markets.
Although the lack of approval of an ETF is for the protection of the investors and the general public from all the threats and illegal activities that are largely present in the crypto world, but as one might suggest, the regulatory body needs to see this market as a market full of opportunities. It should take steps to help this market better the overall financial framework rather than halting it. But still, the issues linked with the cryptocurrency market still need to be solved in order to guarantee full protection for the general public and investors before the SEC approves any ETF.
Adding onto his statement, Thomas stood by his previous remarks of seeing bitcoin hitting $3,000 and ethereum hitting $100 stating:
Still see ETH $100 BTC $3000 before we bottom.